New-York tribune., 1922-02-09
Weeks Doubts
Ford Plan for
Muscle Shoals
Not Certain Fertilizer Can
BE Made Cheaply There,
He Tells House Inquiry
Into Proposed Contract
No Penalty for Failure
Would Place 5O-Ycar Limit
OH Lease: Will Complcte
Dam if Offer Is Refused

WASHINGTON. Feb. s.-Thc OPEN
ing session Of tho House Military Com
nttee's investigation Of tho Ford con
tract offer for purchase and lease Of
the governments properties at Muscle
Shoals, Ala, revolvcd to-day principally
about the clauses relating to 1nanufac-
turo Of fertilizers for the natione aer;
cultura! needs. Secretary OF War
Weeks. appearing as the first Witness,
repeatedly declared his doubt as to
whether fertilizers could be manu-
facturcd cheaply at Muscle Shoals, an!
expressed his belief that amendments
to safeguard better the government q
interests in the SlOe 900 900 Investment
already made should be Incorporated in
the offer RS it Was drafted.
To alter existing government policies
regarding the lease Of real estate or
other properties and permits q ic0-year
ieaao Of the water power, machinery
and dams in Alabama, ti.e Secretary
asserted repeatedly, would BE an unwise
act and should not be permitted. He
advocated reduction in tho time
clause from 100 years to 50 in the event
Congress should decide 20 accept tho
offer.
Seeks to Protect Government
Another o9tcn-reiscratcd suggestion
involving change in present language
OF tho offer. the Secretary pointed out,
would require q Hxed capitalization for
the operating company MIR. Ford is 50
create. The Secretary said no pro.i-
SION existed in the offer guaranteeing
capitalization which the government
might recover, in whole or in part, in
the event the contract was violated. A
provision Of some SORT WAS advisable,
he said, which would permit the govern
ment TO impose, through legal means,
penalty or forfeit should the company
fail to carry out the terms Of Che offer.
Anything might happen in the next
one hundred years" NJ. Weeks said.
"Whi!o I have rot the slightest doubt
as TO the solvency Of Mr.. Ford nor os
his Intentions to execute the agree
mert IN good faith, neither no nor I
will be here during the Nfo Of the cor
tract
Regarding the manufacture OF fer
tilizers and their cheap delivery to the
farmers Of the country, Mr.. Weeks said
there wes no reasonable certainty in
his mind that that was possible. Askc !
what the annual consumption OF fer
tilizeT was, the Secretary said il ap-
proximated 7S,o00,000 tons, and the
Muscle Shoals plants could produce st
maximum only 100000 tons. That
amount, ne asserted, would not, il. his
opinion, effect the existing market.
The Wsr Secretary previously had
told the committee shst Ir. Ford had
declined 20 guarantee fertilizer p-odl,c-
tlon over q given number Of years, and
mad informed him in conversations that
he would nov manufacture the com
modify at loss.
Plant VIII Not Be SslvaveS
Although pressed repeatedly bY ser.
eral committee members the Secretary
did net express en- cpnio0 aa to
whether the offer should be accepted or
rejected by Congress. At one point he
was asked whether the properties
should be salvaged or Mr. Ford's offe.
accepted, but he replied only that The
government would not salvage The pro
ject in any event and repeated his in
tentlon 30 complete TIC Wilson dam e
the offer WAS rejected.
Answering questions By Chairman
Kahn, of the committee Secretary
Weeks said the government had spent
S97 100000 on the nitrate plansa, for
which "Mr. Ford offers $1,000, ,oOO." The
Secretary declared a ffty-ycar lease
would be "a much wiser policy" thcn
ore for 700 years, as offered by Mr
Ford, because "all Kinds Of things cal,
happen in q 100 years"
Asked whether from a government
standpoint it would be better to sal
wage the projects or accept the Tord
offer. Mr.. Weeks said the government
would not salvage the properties.
Predicts Higher Offer
az believe" he added, "that car self
the Warrior plant for more than Nj
Ford offers for al OF them
plant and transmission line was under
stood TO revert to tho "verbal" offer
which Mr. Weeks told the committee
earlier he had received. The pyice Cor
the plant fixed by the unnamed bidder
-ras said to be 5000 900.
ChairMen Kahn announced shat re
Rad telegraphed Mr. Ford twice re-
Questing him TO come personally he
fore the committee or send reprcsef..
tatives to answer questions for him
In the second message, NJ. Kahn eaid
he requested the Detroit manufacturer
to appear between February 9 and II
but said later that next Monday would
be satisfactory.
Ford Will Head Urgent Call
| DETROIT, Feb. 8.-If Henry lo1d's
' testimony before the House Military
Committee ct Washington, with re.
spect 10 The Muscle Shoals project is
"urgertly needed" Mr.. Ford Will ar-
pear in person, he told The Associated