Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-02-09
FORD'S MUSCLE
SHOALS Offer
being FRODEl
House Committee Holds the
First Session; Weeks in
Doubt If Fertilizers Can
be Manufactured CheapIy
cRn The Assoclated sre.s. J

Washington, FEB. 6.-Ihe OPEN
ing session Of the house military
committee Investigation or the
Ford contract offer for purchase
and lease of the governments
properties at Muscle Shoals, Ala,
revolved today principally about
clauses relating to manufacture or
fertilizers for the nations agricul-
tural needs Secretary Weeks, APP
bearing as the first witness, re-
peatedly declared his doubt as to
whether fertilizers could be man
ufactured cheaply at Muscle Shoals
and expressed his beliefs that
amendments to safeguard better
the governments interests in the
$106, 900 900 investment already
made should be incorporated in the
offer as drafted.
To alter government policies re-
garding the lease of real estate or
other properties and permit a 1907
year lease of the water power ma
chinery and dams in Alabama, he
asserted repeatedly would be an
unwise act and should not be per-
|
in the time clause from 100 years
to so in the event the government
should decide to accept the offer.
Change in wording.
Another reiterated suggestion in
volving change in the present Ian
guage of the offer, he pointed out,
would require a fixed capitalism
ion for the operating company Mr..
Ford Is to create. The secretary
said no provision existed in the Of
fey guaranteeing a capitalization
which the government might re-
cover In event the contract was
, violated. A provision Of some sort
was advisable, he said. which
would permit the government to
impose through legal means pen
atty or forfeit should the company
fail 10 carry out the offer.
Anything might happen in the
next 100 years." he said. "While
I have not the slightest doubt as
to the solvency OF Mr.. Ford nor of
his intentions to execute the agree
ment in good faith, neither he nor
will be here during the life of
| the contract. In considering this
question we are providing for the
future generations"
Regarding the manufacture of
fertilizers and their cheap delivery
to the farmers. Mr.. Weeks said
there was no reasonable certainty
in his mind that was possible.
Fertilizer Consumption.
IT / thought that development
of the project by Mr.. Ford would
effect a material reduction in the
cost of fertilizer" he said, "L would
vote for his proposition, If I were
in congress. But I am so in doubt
as to that should hesitate to give
any advice unless assured of q
guarantee" Asked what the an
nual consumption of fertilizer was,
he said it Appropriated $4,000, 00G
tons and the Muscle Shoals plants
could only produce at a maximum
100000 tons.
That amount, he asserted, would
not in his opinion, affect the ex-
listing market.
lie previously had told the COM
mittee that Mr.. Ford had declin d
to guarantee fertilizer production
over a given number of years and
had informed him in conversations
that he would not manufacture the
commodity at loss.
Although pressed repeatedly, the
secretary did not express an opin-
ion as to whether the offer should
be accepted or rejected by con-
gress,
Chairman Kahn announced that
he had telegraphed Mr.. Ford
| twice, requesting him to come be-
for the committee, or send repre-.
sentatives. In the second MESA sc
Mr.. Kahn said he requested the
manufacturer to appear between
the 9th and 18th but said later
than Monday would be satisfac.
tory.