Show I IFORD r or FORD FORO OFFER OPPOSED New York Merchants Are Against Selling on Bid Bidon Bidon on Muscle Shoals WASHINGTON Sept 3 Secretary 4 of f War Var Weeks today received from Major General Lansing H. H Beach chief chIc of ot engineers an I additional report on I tho the offer of ot Henry Ford for tor tho KOV- KOV nitrate plate at Muscle Shoals Alabama Mr Weeks said that hn would transmIt transmit transmit trans trans- mit tho the report to Mr Ford No Intimation intimation Inti inti- mation of ot what the report recommended recommend recommend- ed edas was vas as given Iven but It Is understood that as aim soon as asIt It is rc received hed by Mr Ford ho will como come to Washington and confor contel con con- tel for with tho war secretary on hIs hla of ot of- of tar for A protest against acceptance of or th the offer otter was presented to Secretary Weeks today by representatives of tho the Merchants Merchants' association of ot New Now York It was signed b by the chairman of ot the association William F. F Morgan lors Tho The protest declared that n acceptance of ot the I Ford ord offer would causo cause tho tim government government government gov gov- to lose during during- tho the 00 years yeara ars tho lease would bo In force orce Mr Ford proponed to pay for tor the tho nitrate plant itself which has born been completed at a cost of ot and Is Is' ready for Immediate operation the protest said Tho The Merchants' Merchants association took Is Issue Issue issue Is- Is sue with Mr lr Fords Ford's estimates of ot the cost of ot completing tho the hydro electric power plants on which ho he based an amortization plan under which he would pay In rental to tho the federal g during years OUTI Y NECESSARY Accepting as approximately correct tho the most recent estimates of ot tho the government soy gov engineers tho the additional outlay out out- lay required to complete the tho hydroelectric hydro hydro- electric power plants will approximate instead of or tho the to which Mr Ford For limits his obligation obligation obliga obliga- tion the protest said On the tho same samo basis the tho entire capital capi capi- tal Investment of ot the government will bOo bo- approximately instead of tho the H to which Mr Ford re restricts re- re re-I re his amortization liability Mr Ir Fords Ford's proposal provides for tor the tho amortization amortization amor amor- of ot but as against tho the new Investment required and tho the Investment already made thus leaving tho the government to stand an nn loss of ot of or tho the no required In addition to the loss of ot the tho already Invested or a II total capital loss of ot LOSS ClrA CHARGED GED Tho The governments government's capital Investment In I and arid interest at 5 6 per cent on the 60 which the tho Merchants Merchants' assocIation association tion declared it t t would cost to completo complete the tho power plants would total In tho the years rears in which tho the Ford lease would operate To offset this the association declared Mr Ford proposes proposes pro pro- poses to pa pay only leaving a R. net loss to the government s of ot The protest continued I Mr 1 Fords Ford's offer otter In effect Is that if It tho the government go will subsidize him to the extent of ot approximately he will experiment to determine whether or not he can produce and sell fertilizers moro more cheaply than the they can now bo be produced and sold Bold There Is nothing to preclude abandonment aban aban- of ot the fertilizer should tho the result bo be unsatisfactory In tho the event of or such abandonment Mr Ir Ford will havo have available n for exclusively private purposes an hydro olec trio horsepower plant ilant for for- fora a II rental charge chargo of ot but 1203 per vcr horsepower y year rC oar r. r CALLED SUBSIDY Under such circumstances all semblance sem sem- blance of aC an any public purpose will havo have disappeared and the tho government in- in vi will sill have become an un undisguised undisguised ls guised subsidy to an exclusively private vate Interest All that can possibly bo n accomplished accomplished com com- pUshed by tho the Ford interests In tho the way of ot developing effective and cheap cheap- er el methods of ot production Is alread already In process of ot accomplishment In tho event that the tho Ford Interests aro subSidized sub sub- It is inevitable not only onh that capital will cease further Investment In a field where It is subjected to the destructive effect of ot subsidized compo compo- I but that the ast vast volume of capital already employed In this field will retire as speedily SpaWn as possible It Is the tho firm conviction of oC this association reached after arter Ion long Ions and in- in stud study with the tho subject that under un un- un- un der her no circumstances Is the government government govern govern- ment Justified In Invading tho the industrial Indus Indus- trial field either olther directly or by means of a B. subsidy r to a a. single lo Interest under conditions which will sive o it a great competitive advantage oVer o other vate ato capital I |