The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-03-11
FIGHT
STARTS ON
SHOALS
O"Ouu@V.
Ford Bill, Passed by House,
Meets stonewaII Opposition
Led by Norris.
Continued from First Page.)

Continued from First Page.)
q bid for Muscle Shoals in terms
identical with the terms offered and
secured by Henry Ford, no Con.
gresham giving It half an hour Of
favorable consideration would be
able to escape getting accused of
flirting with political suicide"
Predict Political Storm.
Opinion in many sections Of
Washington today is strongly to the
effect that the Ford contract will
In the end raise q moral and politi-
Cal storm compared to which the
Sinclair and Doheny storms will be
zephyrs.
In the House Of Representatives
yesterday every amendment pro.
posed to the Henry Ford Muscle
Shoals bill for the purpose Of hold.
ing Henry Ford literally and legally
to his verbal promise about Muscle
Shoals was vigorously voted down.
It was an extraordinary triumph
for Henry Ford. The House gave
Henry Ford a contract and a gift
which nobody in Washington be-
lieveS that the House could ever
possibly have voted away to any
other man.
The bill as passed contains the
following principal provisions:
The possessions Of the United
States government al Muscle Shoals
on the Tennessee River, in Ala.
bama, are divided into two parts.
The first part consists Of certain
dams and adjoining works In the
Tennessee river. These have been
built, or will be built, at the cost
of the United States Government.
Henry Ford agrees to lease them
from the United States Government
and to pay a rental for them con-
sisting Of interest at the rate nom-
inally Of four per cent.
Less Than u. s. Pays.
In fact, II certain modifying de-
tails are considered, this rate in
practice will be less than three per
cent.
Thus Henry Ford in effect Dor
rows money to the extent Of more
than $50, 000, 900 from the United
States Government at q rate of
interest actually lower than the
rate which the United States Gov
eminent itself pays to bankers In
New York when 1t borrows money
for its current expenditures on
United States Treasury certificates.
The second part Of the property
Of the United States Government at
Muscle Shoals consists of certain
manufacturing plants for the pro.
duction Of nitrogen out of the air
and for the making of fertilizers.
1t consists also Of large quantities
of land and Of a couple Of towns
and of vast stores of commodities
(such as platinuml left oyer from
the late war.
Obtains Real Bargain.
This second part Of the property
Of the United States Government at
Muscle Shoals cost the United States
Government some $50 900 900.
The platinum in 1t has alone been
estimated by the Senate Committee
on Agricultur as now worth
$3.50 900. For all of it-nitrate
plants and 5000 acres of land and
town and houses and paved streets
and stored lumber and an immense
quarry of limestone and hundred
other items Of large value included
in the original cost Of 500. 1000. 900
Henry Ford pays $1,000 900.
To compensate Mr. Ford for the
discomfort of having had to pay
this $5,O00,00O, the United States
Government engages itself under
this bill to build him a new steam
plant costing $3,500.00
Accordingly the total net cost to
Mr.. Ford Of the national property
at Muscle Shoals originally worth
$50, 000, 900 is $1,5O0,000.
Nevertheless the bill was put
through the House by Mr.. Ford'S
promise to make fertilizers for
farmers out Of the nitrogen which
Mr.. Ford will gather from the air
in his nitrate plants at Muscle
Shoals and which he will transform
into fertilizers for the farmers to
use on their farms.
Profits Alone Restricted.
On that point 1T il noted that in
the bill as passed there is absolutely
no promise by Mr.. Ford as to the
price at which he will sell these
fertilizers. He may sell them at a
low price. He may, II he chooses,
sell them at high price.
The only restriction placed upon
him IL that In the fertilizer part
Of his business at Muscle Shoals, he
must not make a profit of more
than eight per cent.
Considering that he will be Dor
rowing his money from the Govern
ment at less than per cent, 1t is
thought that a limitation of his
profits to per cent was at least
reasonable.
When this bill gets to the Sen.
ate, the storm that will break upon
It will make a national political
torrent.
Copyright. 1924. washington Press
Servic0.)
AR.I on TNeVV