Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-02-04
FORD'S PROPOSAL
ON MUSCLE SHOALS
GIVEN To CONGRESS
Suggests Completion of Will
son Dam if Proposal Is
Turned Down - FavorS
Shorter Lease

WASHINGTON, Feb. 3.-(By the
Associated Press.}-Henry Ford
proposal for Muscle Shoals was sub
mitted to congress today by Secre-
tary Weeks without snecific =,econ3-
mendation as to its acceptance or
rejection.
The report was referred to- the
house military affairs committee.
The Secretary's only suggestions
related to the desirability of amend
ments to further safeguard the gov
ernment's interests in the event the
proposal We're accepted by congress.
In the event the offer were rejected
the secretary said it was his opinion
that Wilson dam should be compIet-
ed by the government and that the
. power requirements for commercial
purposes, the ben IS to = lvigation,
as ell as the possible needs Of the
government would warrant the ex-
penditure.
'At this time" Secretary Weeks
added, when there is large amount
Of unemployment, it is not without
Importance to consider the adVan-
tage to the nation of the large
amount of labor requir in under
fore urge that congress give early
consid grafton to this matter, not only
to settle a controverted question.
but to furnish employment on a
large scale"
The secretary explained his action
in sendin. the offer to congress bv
declaring he was without authority
to dispose Of the properly by sale
or lease.
''In the event TIC offer is accept
ed he said, ''the government must
make new ppropriat MS am ting
to $40,O0O,OOO to $50, 100000 of which
Mr.. Ford will have the benefit for
approximately one hundred ! s.rs at
four per cent.
FavOrs 50-Year Contract
Secretary Weeks said he believed
it would be a better policy to limit
the contract to tenn of fifty years
to conform with the esta' 'ished pol
icy of the government as set forth
in the water power act suggest
ca modification SO that in the event
the ope ing company TO be created
failed TO carry out the contract
some penalty would be imposed.
A statement by Major General Wi:
Hams, chief of ordinance, SUMMARY
ing the Ford offer from the stand
point of l!is department, was append.
ed to Secretary Weeks letter. The
Or, General Williams said, "had
? the very important advantage of ma
terially as, sting in the development
of nitrogen preparedness and had
the disadvantage of conflicting with
the contractual obligations with the
American Cyanimid company and
the Alabama Power company and OF
IL.
ment of less than $5,000,000 for prop
-ertieS which have an estimated sal
wage value of some $16,0000G0
Another statement, from Major
General Beach. chief of army engi.
neers, pointed out four indirect bane-
fits the government would receive
in the event the Ford offer were &C
cepted.
Indirect Benefits
They follow:
1.-The maintenance Of a nitrate
plant in readiness for war emergen-
cy.
1.-THE production, in the interest of
the public welfare, of large amounts
of fertilizer at a cost not exceeding
The reasonable cost of production
providing that the production of nj
trate adapted to fertiliZing purposes
"The' elimination of the cost OF
maintaining and operating the pres
ent imperfect facilities for naviga-
ton at Muscle Shoals, amounting to
from $35, 1000 to $4,000 per annum.
"The advantage to interstate COM
MERGE and navigation of the far sup
erior facilities to navigation that will
he secured through the construction
of the dam and locks"
Secretary Weeks called attention
of congress to the cost of the nitrate
plants for which Mr.. Ford offered
$5,0OO,000.
''Mr. Ford is Offering but $4,000
600 for the title to the two nitrate
plants. the Waco quarry, the Gorgas-
Warrior steam plant, transmission
lines and appurtenances," he said,
adding that $50 you may better un-
derstand the value of the property
am attaching q brief statement
prepared by the chief of ordnance
showing the cost and estimated sal
wage value of these properties. From
the table contained in this state
ment it will be seen that the proper
ties cost the United States approx
mately SS5,000,000 and that as scrap
they are estimated to be worth 49,
$4,000"
Weeks Suggestions
Among Secretary Weeks sugges
tions in connection with the Ford
proposal were these:
Il suggest that the cost of acqulr
ing the lands and fioWage rights
necessary for dam No. should be
included in the sum upon which Mr.
Ford is to pay per cent interest
as rent. The omission of the cost OF
these lands from this computation
is more serious than would be the
commission of the provision for
sinking fund, for the annual interest
at 4 per cent on the cost of such
lands and rights, if used for that
purpose, would amortize sun
much larger than that provided fol-
in paragraph ten of Mr.. Ford's pro
posal.
I'm case the proposed company
sells any or all power developed al
either or both of these dams II
s1o11ld be required to do so under
terms and conditions imposed by the
federal power commission, or the
public service commission of Ala
hama in the manner required OF
other power companies.
"While paragraphs of the
nresent proposal provide that Mr.
Ford's company is to pay to the
United States, annually, the sum OF
$4,000 on dam No. and $4,000 OF
dam No. for repairs, maintenance
and operations of the dams, gates
and locks, congress may well con
slider whether it would be more de
sirable to have Mr.. Ford maintain
the property and omit these pay
mentS.
Should Complete Dam
eff Mr.. Ford's proposal be not &C
cepted it is my opinion that dam No
CZSils0n damn should be completed