The New York herald., 1921-07-15
FORD SEEKS TO BUY
U. S. NITRATE PLANT
Offers Government SIS, 100000
and ST, 100000 Annually for
100 Years for Property.
WEEKS, HOOVER FOR PLAN
War Secretary to Put Question
Up to Congress and Urge
That 1t Be Accepted.
onrl Despatch TO THE New YORK HERALD.
New York Herald Bureau,
Washington, ID. c., July IA.

auuu, Despatch to THE New YORK HERALD.
New York Herald Bureau,
Washington ID. c., July IA.
Henry Ford's offer TO take over the
Governments nitrate plant at Muscle
Shoals, Ala, for conversion into fer
tilizer plant under 100 year lease. in
volving a cash payment Of 100000 and
an annual obligation of 100000 for 100
years. was announced to-day by Secre-
tary of Commerce Hoover.
Mr.. Fords proposal to utilize the plant
specifics that he will maintain a nitrate
plant in reserve for the Government for
the entire period. to meet any war
emergency. Discussions leading up 10
the OFFER were conducted by Assistant
Secretary OF Commerce Huston, with
the approval of Secretary of War
Weeks.
Congress must approve the project
before Mr.. Ford can obtain possession.
Mr. Ford proposal was formally trans
mitted to Secretary Weeks to-day. He
later will submit it to Congress, with
the recommendation that the transfer be
authorized.
Secretary Hoover praised Mr.. Ford
vert the plant constructed by the Gov
ernment at cost of $50, ,000, 900 into
an enterprise of large commercial pos
sibilities
The negotiations with the Commerce
Department drew out Of representations
made to the Department of the Missis-
sippi Valley Association, the Tennessee
Valley Association and the American
Farm Bureau Association. These organi-
zations declared their interest in seeing
that the uncompleted project should not
disintegrate altogether, but should be
utilized in such manner as would Inn
prove the transportation on the Ten
nessee River.
as outlined by Secretary Hoover, were
1. Mr.. Ford will take a 100 years
lease upon the Wilson dam and No. 3
dams end electric installation when COM
pleted. This work Is estimated to cost
s2S,000,o00. After short preliminary
period Mr.. Ford proposes to pay inter-
est at the rate of per cent. on the
$2S,0O0.000 and to amortize not only
this sum but the entire cost of both
dams over a period of 100 years.
2. Mr.. Ford will purchase all the
nitrate plant and equipment, lands and
steam plant. for $5,000,000.
3. He will convert and operate the
large nitrate plant (No. p for the pro-
a standby for Government explosives in
case of war and to keep it up to date
in both arts.
A. He will limit the profits of the fer
tilizer plant to per cent. An indepen-
dent board embodying representatives
OF the American Farm Bureau and the
National Grange and the Farmers Union
will certify to this maximum profit.
Secretary Hoover said that compile
ton of these works would make the
Tennessee River navigable to Chatta-
nooga. He said there are undertakings
by Mr.. Ford for maintaining the locks.
"The power developed will ultimately
greatly exceed the requirements of the
fertilizer plant and Mr.. Ford proposes
to use it In his own business" said Mr..
Hoover. "In order to meet the annual
payments proposed very large use of
power must be made outside of the fer
tilizer works."
Acceptance Of Mr.. Fords offer Is en-
tirely a matter for Congress to decide,
Secretary Hoover said. Secretary Hoo
yer had no doubt that Congress would
follow the views of Secretary Weeks
when the latter transmits the Ford offer
with his recommendations.
"Mr. Ford has made a genuine pro-
posal," said Mr.. Hoover. 1T shows
courage to agree to pay out s5,000,0 900 /;
to spend further sums upon large works
and besides to take an annual obiiga-
ton for about s1,500,o0o for 100 years,
and to agree to maintain a nitrate plant
in reserve for the Goverirs,nt for that
period.
Whatever may be the result, Mr..
Ford's offer does prove what the public
associations have contended-that the
completion OF this project has a COM
n'ercial value"