The Washington times., 1921-11-19
KING
VICTOR IN
FIGHT FOR
b|CUT|L|TY
Will Spend Millions in Project
To Mean Development
of South.
BY WILLIAM, X. HUTCHINSON.
Iuternstionsl News Service.

The Government has favorably re-
ceived the proposals OF Henry Ford
to assume control OF the Muscle
Shoals water-power project for ninety
nine years. it was learned today on
high authority.
An official announcement that the
Government has accepted Fords
offer "tn full" can be expected within
few days. The propoeals will then
30 to vote sf Congress. ~ they
involve an appropriations OF approxi.
mately $40, 900: 49,. s.,>.,,..,
- iiI6SS { rsgxe1j = .Isspsisls q. ~
Leasing Of the proieef 10 Fos4.
which he declared would resurr1ct
the industrial life OF the South. VAL
be based on nine principal proposals.
1t was learned.
These are:
/. Outright purchase by Ford OF
the Governments nitrate plant at
Muscle Shoals for $5.000.000
2. Payment by Ford Of approx
mately 81 $50 900 annual "rental," as
interest on capital invested by the
Government. for water power rights.
8. Reimbursement by Ford Of $780,
900 900 to be spent by the Govern
ment in completing Wilson Dam. con-
;roling the Muscle Shoals water
power plant.
4. Reimbursement by Ford Of $S.-
900 900 to be spent by the Govern
ment in completing dam No. 8, an
auxiliary water-power plant.
S. Outright expenditure by the Gov
ernment Of $15,000,000 approximate
ly) in erection of two locks and a
canal between the two water-power
plants.
6. Erection by Ford OF a storage
dam at his own expense. This work
will involve several million dollars.
To Anortize S2S, 200, 900 Debt.
Z. Amortization by Ford Of his
| s2S 100000 debt to the Government
through creation Of a sinking fund.
8. offer Of Ford to perform all
construction work for the Government
on a net cost basis.
9. ALLEGATION to the Government by
| Ford of certain water power rights.
Four of these proposals, the fifth,
sixth, seventh and eighth, were freely
discussed at the conference held yes.
| terday. IL was said, between Ford and
Secretary of Commerce Hoover and
Maj. Gen. Lansing II. Beach, repre-
sentfng Secretary of War Weeks, who
was iii. The disputed" points were
explained to tho satisfaction Of both
sides.
The fifth proposal, erection of two
locks and a canal by the Government,
was distinctly OF a compromise ma
ture. 1t represented a reduction by
the Government Of previous estimates
| through the charging of construction
| work to navigation" This was done,
II was said, because the locks and
canal would not be Of distinct advan-
tage to the water power plants.
Ford "Gives Ground"
| On the other hand. Ford gave
ground" in the sixth proposal, calling
| for his personal erection of a storage
dam. This proposal was offered by
the Ford engineers, 1t was said. as a
guarantee that water power would be
furnished the South "the whole year
| around"
| One of the Governments early OBJ
jections was based on the lack OF
water pressure during dry seasons" Z"
to build the storage dam to supply
water to the power plant during the
"dry SPELLS" II was said.
Ford left Washington early today
without having seen Secretary Weeks
because of the latter's illness. The
manufacturer was In high spirits
and confident that his business re
v,val Of the South would soon be under
way.
II am very happy" he said before
his departure. THE project looks
very favorable now"