Evening star., 1925-01-03
BY WILL Il. KENNEDY.

The vast power and nitrate plants
at Muscle Shoals, costing upward of
$3.50, ,O00. 900, which have been a great
white elephant" on the Governments
hands since the armistice was signed,
November IL, 1918, before long now
will be disposed of by Uncle Sam on
a businessIike basis. The general
scheme of sale has been pretty well
agreed upon at White House confer
ences, although the details are yet TO
be worked out, and it is confidently
stated that Congress will agree to the
administration plan just as soon as
members get through talking and are
ready to do business.
The various proposals thus far
made and debated in Congress for dis
posing of these properties will be
thrown in the discard. because they
have been figured from an uneco-
nomic basis, those who have been ad-
vising the President say.
Ford Glad to Withdraw.
Since Henry Ford made his offer on
July s, 1921. the terms of sale or lease
of the Muscle Shoals properties have
been thrashed out in public print. The
Ford offer can be dismissed now from
onsideration. Those who seem best
qualified to size up the situation ex-
press the opinion that the original
Ford offer was so adroitly framed as
to give the impression of an agree
ment to manufacture nitrates by
wholesale, without any real intention
of doing this Then, when Ford 8
good faith was challenged he gave
his legal and business staff heart fail
ure by going the limit in his agree
ment to produce nitrates. When de-
velopments opened the way for him
to withdraw, he was only too glad to
do so.
Then there is another aspect to the
Ford proposal. One of the great in
dustrial needs of the United States is
for development of some process OF
manufacture Of nitrates at a cost so
reduced that it can successfully COM
pete against the British capitalized
combine in the Chilean field which
now has stranglehold on the Ameri-
can market. Private capital must be
ready to take loss of some $4,000
600 in an effort to do this. Henry Ford
may have been ready to pay that price
to perform a tremendous public service
and he may still be ready to do so.
Considering the matter from business
standpoint, Henry Ford has washed his
hands of Muscle Shoals
Before going further it is important
to see just what is included when we
speak of Muscle Shoals"
Composition of Plant.
BY section 124 of the national defense
act of June 8, 1916, the President was
authorized to determine the most avail
able means for the production of nitrates
for munitions of war, and for manufac-
ture of fertilizers, and to construct,
maintain and operate the works and
plants necessary for such purposes. In
accordance with this authority there
have been built in the vicinity of Shelf
field, Ala, nitrate plant No. /, capable
of producing $4,000 tons of ammonium
nitrate per annum by the Haber process
and costing s12,S8S, 900, and there was
constructed nitrate plant No. 2, capable
of producing 10000 tons of ammonium
nitrate per annum by the cyanide process
and costing SGT 200. The sites of
these two plants have an aggregate area
of more than 1900 acres, and contain
scores of other buildings, including
shops erected at a cost of S2.996, 900,
residences at a cost of $3,121 200, roads,
railways, water supply. sewers, etc, at
cost of S6.310. 900 and an electric dis
tribution system at cost of $2,533, 600.
On the site of nitrate plant No. 3
is a steam plant of the most mod
ern construction of $4,000 XIV. ESQ.,
600 horsepower capacity and with
foundations in place for an additional
$4,000 XIV, erected at cost of $12,-
$4,000. About 90 miles distant is
Waco Quarry, embracing an area of
460 acres, connected by rail with
nitrate plant No. 2, having a stone
crushing plant with daily capacity of
1000 tons, and costing S1,170.000.
Properties Cost sSO.443.O 900.
All of these properties, built or ac-
quired at an aggregate cost of $50, 49,
600 and having a scrap value in excess
of Sl0,000,000, it was proposed to sell
outright to Henry Ford for a net
payment of s1,52S,00O or less than 2
per cent of their cost.
At Muscle Shoals, on the Tennessee
River, in the vicinity of these nitrate
plants, the United States has under
construction a dam and power plant
This dam, known as dam No. q" will
contain 80 per cent more material
than any other dam in the world
(Continued on Page g. Column Al