The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-01-14
WAR DEPARTMENT
HAS NO AUTHORITY
TO TAKE ACTION
Disposition of Real Estate and
Other Properties Is Vested
Only in Congress.
TO DRAFT PROPOSAL
IN CONTRACT FORM
viii Be Several Weeks Before
They Are Ready for Submis-
sion and Final Action.
10y Tho Associates Press)

sFord's offer for purchase and lease OF
the governments nitrate and water
power project at Muscle Shoals, Ala,
viii be referred to congress for hnai
decision, Il was announced today at
the conclusion of conferences between
government officials and Mr.. Ford.
Accompanying the Ford proposal when
IL is transmitted. Secretary Weeks
said, probably would be the two offers
received from Frederick Engstrum OF
wilmington, n. c., and G. G. Tinker
Of San Francisco.
The decision to forward the three
offers to the legislative branch or the
government, 1t was stated. was re-
ported after consideration Of the ques-
tion by executive officials lasting over
a period OF more than six months.
Under the laws regulating disposition
OF real estate and other properties
owned by the federal governemnt. it
was said, the department Officers
lacked authority to take final action
and were compelled to refer the Muscle
shoals offers to congress for It's con-
sideration.
Actual transmission of the proposals
was not expected to take place for at
least two weeks 1t was explained
that tho Ford proposal FIRST would he
drafted in contract form by law ofti-
GERS of the war department and be
submitted to Mr.. Ford for his sigma
ture before II was submitted to con-
gress.
While the legal departments are
working on the contract form, it was
stated. Secretary Weeks would pre-
pare a report for congress containing
what "comments' he believed Its
members should have for their infor-
nation.
Explaining the action taken by the
conference. Secretary Weeks said he
was disappointed in that MIR. Ford de-
clined to agree to certain notifications
OF his plans which We're held desirable
by his conferees One of these was
known TO be that affecting the reduce
tion Of the 100-year lease period. The
principal modification agreed to by Mr..
Ford was that guaranteeing payment
annually for 4 per cent interest on
the cost of construction OF dams No.
2 and 3, regardless OF the cost, where
asgt first he offered interest only on
S2s 100000.
Secretary Weeks statement, ex-
planning this agreement. follows:
'Mr. Hoover and have had a long
consultation with Mr. Ford about his
offer for Muscle Shoals and have
brought up for consideration various
phases OF It. The only modification
which Mr.. Ford is willing 10 make is
based on our request that there should
be guarantee of the limitation OF
cost of building dams No. and 3, and
in that matter, he has offered to pay 4
per cent interest on the cost of the
dams from the time OF their compile
ton to the expiration OF the contract
That. OF course, means on the amount
OF money which has not been returned
TO the government through the amor
tization plan made in the original pro-
posal.
1t was explained that Mr.. Ford'sl
refus.-l to accept the modification pro-
posed 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 century
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 have
expressed an unwillingness to agree to
a shorter time on the ground that the
financial investment ne would make
would involve n greater amount of
money than he was prepared to spend
under any time period less shan 100
years.
Several members OF both the house
and senate made no effort tonight
when Informed that the contract would
be submitted to them to Disguise their
fears that both houses OF congress
would be divided on the question when
u reached the stage OF consideration
on the floor. While the contract will
pc urged for acceptance hy many
members from the south. whose con-
stituencies are known 10 favor the
Ford proposal, 1t was anticipated that
no small number from other sections
Of tho country would oppose its az
ccptance.