Arizona republican., 1922-01-14
CONGRESS WILL
HAVE FINAL SAY
ON 8 BIDS Or
NITRATE PLANT
Three Offers Accomuanied
By Secretary Weeks
Comment VIII Be Sent
To Congress
Republican A. p. Leased Wlre1


WASHINGTON, Jan. 13. = Henry
Ford's offer for purchase and lease
OF the governments nitrate and water
power projects at Muscle Shoals.
Ala, will be referred to congress for
final action, it was announced today
at the conclusion of conferences be-
tween government officials and Mr..
Ford. Accompanying the Ford pro-
posal when ii was transmitted Sec
retary Weeks said. probably would be
the two offers received from Fred
erick f. Nostrum of Wilmington, n.
c., and c. c. Thinker Of San Fran
cisco.
The decision to forward the three
offers to the legislative branch Of the
government, it was stated, was
reached after consideration of the
question by executive officials last
ing more than six months. 1t was
said the department officers lack au-
thority to take final action and were
compelled to refer the Miscle Shoals
offer to congress.
Actual transmission OF the pro-
posals was not expected for at least
two weeks. 1t was explained that
the Ford proposal first would be
drafted in contract form by law Of
ficers of the war department and be
submitted to Mr.. Ford for his sigma
ture before it was submitted to con-
gress
While the legal departments are
working on the contract form, it was
said, Secretary Weeks would prepare
report for congress containing
Comments" for their information.
What my comments are" the sec
retary said, will appear when / send
the offer to congress, which will be
as soon as the papers are prepared
Week to Draft Contract
Some officials said they believed it
would require a week to prepare the
contract and probably another week
or more to obtain the signature of
Mr.. Ford. The contract will be sent
to Mr.. Ford when it is drafted.
Secretary Weeks tonight said he
was disappointed in that Mr.. Ford
declined to agree to certain modifica :
tions of his plans which were held
desirable bv his conferees. One is
known to be that affecting the re-
duction of the 100-year lease. The
principal modification agreed to by
Mr. Ford was that guaranteeing pay
ment annually of 4 per cent interest
on the cost OF construction of dams
numbers two and three. regardless
Of the cost. whereas at first he Of
fered interest only on $2S.000000.
IT was explained that Mr.. Ford's
refusal to accept the modification
proposed for reduction of the 100-year
term probably would give congress an
added task in connection with its con-
sideration Of the offer. Existing laws
regulating lease of properties pos
sessed by the federal government. 1t
was explained. limit the period OF
maximum lease to less than CEN
tury and congress probably would
have to modify the statutes in the
event it decided to accept the Ford
proposal.
Mr.. Ford, however was said to be
unwilling TO agree to a shorter time,
as the financial investment he would
make would involve greater amount
Of money than he was prepared TO
spend under any time period less than
100 years,
Several members Of both the house
and senate made no effort tonight TO
disguise their fears that both houses
of congress would be divided on the
question. While the contract will De
urged for acceptance by many mem
bers from the South, whose con-
stituencies are known to favor the
Ford proposal. it was anticipated that
no small number from other sections
of the country would oppose its ac-
ceptance.