Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-05-29
GORGAS PLANT
IS CUT FROM
SHOALS OFFER
- '-"- ''s
House Committee Makes
Counter Proposals To
Bidders On Properties
tBy The Associated Press.)

Washington, May 27.-Bidders
competing for development by private
enterprise of the governments $780,
100000 war projects at Muscle Shoals.
Ala. were given their answers today
oy the house military committee in
the form of a counter proposal franz
ed by the committeeman. None of.
the offers submitted by the bidders
and forwarded to congress by Sec
rotary Weeks for final decision was
found acceptable. That made by
Henry Ford came closest to winning
the award in that it was made the
basis upon which the committee built
its reply.
The committee acted in a way, it
was explained, which will leave ito
decision subject to acceptance by any
person or interest willing to meet its
terms and which will permit it, at the
posal before the house when the sub
ject of Muscle Shoals is acted upon
In that body.
: No time was lost by the bidders in
calling for their w. B. Mayo,
chief engineer for Mr.. Ford. was the
first to receive a copy OF the com
mfttee's plan; representatives of the
Alabama Power company, Frederick
Engstrom and Charles Parsons, max
10 vi IL ol1lcI OluS, "cIc dShCu "
advise the committee early next week
whether they would accept the pro-
posal. Mr.. Mayo said he would con-
fer with Mr.. Ford in Detroit, before
giving an answer, n left here for
that purpose a few hours afterwards
Details We're Secret
Some committee members were
represented as being confident hat
the plan worked out by the commit
tees would be accepted by Mr.. Ford
despite the elimination Of the Cor
gas. Ala, steam plant from the prop
critics to be disposed Of with Muscle
Shoals. Others, however. apparently,
lacked the confidence their colleagues
evidenced in this regard and called
attention to the repeated declarations
of Mr.. Mayo and other witnesses for
Mr.. Ford hat Mr.. Ford's offer had
to be accepted "as a whole and not
in part
Care was exercised by the commit
secret until the bidders had received
it, including Mr.. Ford in Detroit; it
was understood, however. that the
plan was in effect the Ford modified
offer and differed only in the language
added by the committee, replacing in
many paragraphs that which was
struck out in order to insert commit
tee .4..
GOrEas Plant Eliminated
In brief the committee alterations
were represented as being chiefly i'm
portant with respect to the Ford offer
in that they eliminated the Gorgas
plant, required a paid up cash capital
of $40, 900, 900 OF more for the oper-
ating company to be created for de-
veloping the shoals. made compulsory
the yearly production Of finished COM
mercial fertilizers on the basis of 49,
900 tons of fixed nitrogren and speci-
fed the n of appointment of the
directing board Of seven members
whose duty would be to examine the
company's books and prevent the sale
of fertilizers at profits exceeding eight
per cent of the cost of production.
The provision of the Ford proposal
fixing 100 years as, the least period
for the Wilson dam and other pro-
jects not purchased outright by the
Detroit manufacturer. remained un-
changed in the committee draft, it
was understood, as well as the pro
visions relating to the financial phases
Of the proposed transaction. In this
connection it was recalled that Secre-
tary Weeks. on recommendation to
congress made when he transmitted
the Ford offer there, vas in opposi-
ton to the 1%00-year lease.