Arizona republican., 1922-02-03
rReoubIloar A. p. Leased WIre1


WASHINGTON, Feb. 2.-Prompt
action marked the reception by con-
gress today of the Ford proposal for
lease and purchase of the Muscle
Shoals, Ala, nitrate and water power
projects as referred to the house by
Secretary Weeks for its decision and
afterwards for consideration by the
senate. Speaker Gillett sent the Of
fer Immediately on its receipt to the
house military affairs committee
while members OF the interstate COM
merce committee indicated they
might seek change Of reference to
the body.
Chairman Kahn OF the military
committee contended however. that
the report had properly been referred
to his committee. Mr. Kahn said ex-
peditious action by his committee
could be taken.
Evidences of equally rapid action
by the house after the committees
report with reference to recommen-
dations that the proposal be rejected
or accepted is made 10 the body were
somewhat more dimmed. Indications
were that house members would dis
cuss the question at some length be-
fore n final vote could be reached.
Frederick f. Engstrum, who has
submitted to Secretary Weeks on
amended proposal for the lease and
operation of the Muscle Shoals prop
critics. issued a statement today az
ter publication of the Ford proposal.
My proposal" Engstrum said.
contains no conditions which might
prevent the manufacture OF nltrates.
The entire development OF the pro-
ject will be devoted to the manufac-
ture Of nitrates and to nothing else.
The present nitrate plants at Muscle
Shoals were designed TO produce
nitrates for explosives and can not
be used to manufacture nitrates for
fertilizer. In my proposal. agree
to redesign at once these plants at an
expenditure OF $5.000,000 if necessary.
and produce commercial nitrates By
the best process now known.
1T is well known. however that
nitrates for fertilizer can not be
profitably manufactured by fixntion
Of nitrogen from the air by any
present known process. but everyone
hopes and believes that improved
process could be developed to pro-
duce such results"
MY proposal PROVIDES" the state
ment concluded, that when nitrates
can be made at less than the cost OF
the Chilean product, that the money
arising from the sale Of excess power
which had before been used 20 en-
nance the manufacture OF nitrates.
will be turned Into the treasury Of
the United States. Thus. IL viii be
seen that under my proposal the gov
ernment will receive an income esti-
mated at more than $3,000.OO0 per
year, which VIII be devoted 10 III
nancing the production Of nitratcs
as long as necessary and then 10
receive the same as a cash income. ("
WASHINGTON, Feb. a. Henry
Ford's proposal was submitted to
congress by Secretary Weeks, FOR
such action as congress may deem
appropriate" The only suggestions
contained in the letter OF transmits
sion related to specific clauses in the
contract and the desirability of
amendments which would. IN the
event the proposal be accepted by
congress further safeguard the gov
ernments interests.
Otherwise. the secretary OF war
carefully avoids reference 10 congres.
sional action involving the ultimate
acceptance or rejection of the offer
as submitted.
I'm the event Mr. Ford's proposal
Is accepted" he declared, "the gov
eIhment must make new aDpropria-
tlons amounting TO $40, 600 600 10
100000 600 of which Mr. Ford win
have the benefit for approximately
one hundred years at four per cent
In the event the offer be rejected
the secretary gave il as his "opinion
that dam No. 2 (Wilson damn should
be completed by the government and
that the power requirements for cont
mercial purposes. the benefits to
navigation as well as the possible
needs Of the government would war
rant this expenditure.
III this We're DONE" he continued
the government may itself UNDER
take TO sell the product TO the best
advantage In such case the amount
of the governments present proposed
investment would be very materially
reduced, because dam No. 8. costing
from $1S,0O0,000 to $25, 900, 900, would
not be built" and it would not be
to make the full install
lation of power plant on the Wilson
dam until the market required such
This partial installation" he ex-
plains would effect a saving OF