The Birmingham age-herald., 1921-07-27
FORD'S 'SDEMANDFOR GORGAS PLANT MAY REQUIRE REVISION
Operation of Big Steam Plant Is Indispensable to Ala {. bama's HydroeIectric
 System

The proposal of Henry Ford to take over the Muscle Shoals project as published In The Age-Herald yes terday contains one item which, it is feared, may prove a stumbling block if insisted upon. That is the para graph, which would require the gov ernment to turn over to the Ford in terests the steam plant of the Ala bama Power company at Gorgas.
 Officials of the Alabama Power company yesterday had no statement to make in connection with the mat ter, but it Is well known that the power plant at Gorgas is indispensi- ble to the operations of the states hydro electric system.
 When the government was entering upon the war and the nitrate plants were located at Sheffield, it was necessary for the government to have power. The Alabama Power company had 30,000 horse power steam plant at Gorgas which it then and now owns in fee simple, subject only to it's AiOi 6 6o 5 70. hio PAahL Voo anu iS connected with it's system in Ala bama and was the reserve steam plant for that system.
 The government desired power from the Alabama Power company within six months after the location of the nitrate plants at Sheffield, as it was not possible for the govern- ment to build plant at Sheffield to obtain power. The government also desired at that time to insure it's power requirements for an indefinite period. and contracted with the pow CT company for power from the power company's system, which contained not only it's Gorgas plant. but two hydro plants and several other steam plants of total capacity of 170,000 horse power.
 It was necessary, however, for the power company's system to be sup plemented by additional generating equipment to insure the government service, and for this purpose a con tract was made between the govern ment and the power company 10 in- crease the size of the Gorgasf steam plant adding another generator and other equipment.
 The contract with the <governmsnt SON tHe StCdHl pidHt IS December 1, 1917 By that contract, the power company agreed to make certain payments to the government and the government agreed to make certain payments to the power com pany for power. The effect of the contract is to bind both the govern ment and the power company. the former to sell to Alabama Power company and the latter to reimburse the government its advances made to enlarge the generating facilities of the power company Goyernnen financing was necessary by reason of the war conditions and the aneer- tainty of how long the government demand for power would continue.
 This entire plant is not capable of separation, and is used in the public service in Alabama. The power com pany has two hydro plants. but the low water flow of the Coosa is such that the power company is unable for a large part of the year to meet the demands on its system with hydro power. The result is that it is neces- sary for the steam plants to carry the load for part of each day. The Warrior steam plant, containing. as it does, two generators, with capacity of 10000 horsepower, is frequently cal1a1 ,tr,nr fn fo ft111 oopao;4..