Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-05-26
CONTRACT FOR NITRATE
PLANT HELD INVALID
'augherty Rules on Agree.
mcnt Negotiated by War
Department.
EcisIoN REMOVES onsrA Gle
'"bnma Corporations CIniurd Ex-
elusive Right to Purchnse Unit. mt
Muscle shonis to Which Ford
Seeks Clear Title.
tBy Associated press.J

10y associated Press.
WASHINGTON. May 25.-In a for
= nal opinion transmitted ty sccre-
Eary Weeks 10 tho House Military
committee today. Attorney General
Oausherty held the contracts ncgo-
lated Between tho War Department,
tne Alabama Power Company and
he Air Nitrates Corporation to be
invalid" with respect To the pro-
'islpns which. officials OF the two
8'onccrns claimed. gave them cxcIu.
: 'lve rights TO purchase tho Gorgas,
alabama, steam power plant ana nj
rate plant No. 2 at Muscle Shoals
The opinion was placed before the
4'ommit,ee by Chairman Kahn for
1'tudy In connection with the inves-
iga,ion IL is making OF Henry
HTord's offer to purchase and lease
R!he Muscle Shoals projects Com
Iniitcc members advocnting accept
.nce OF the Ford proposal by Con-
Dess expressed qualification at the
position taken by the Attorney Cen.
;rai and some declared the chief
obstruction TO their iabors had been
removed by the opinion.
No action was taken Ey the com
nit,ee. and. after an hours study
Mi The document in executive nes-
Sion the members were summoned
10 the Houne by II quorum call aud
.diourned until tomorrow when, it
sas predicted. the way would to
cleared for early action.
Pleasant niOl.,,I. Isr.i,t.,,,
officials OF the nitrate corporation
Ind the power company appearing
ieforc the committee mad mad. /,
1i'lain that they expected the gov
Fsrnmcnt 10 meet The obligations I'm
,'osed by the contracts. and an
bounced that, in the event The gov
ar.nment failed 10 do so. court ac-
ION would be Instituted TO compel
compliance.
Il Their testimony was accepted by
ONE committeeman az presenting =
iihcult problem which they would
ave 70 solve before the Ford offer
ould lie reported. unless IL was
9uod!hed 80 as 10 eliminate the nj
rate plant which he proposed To
urchasc and the GOrgas steam plant
ar which clear title was asked.
Spokesman for Mr. Ford declined
yepcatcdiy 10 assent 10 such modi-
eicatiou. The witnesses Of the power
company and the nitrate corporation
ltcadfastly cOntended that the con
1 racts were legal and refused TO con-
ent to any proposal 10 sell the two
\,ants 10 other than their own in
4eresis.
Occupy Middle Ground.
Thus the committeeman found
themselves occupying Il middle
round. with Mr.. Ford's representa-.
!-s insis,cnt upon one hand that
e be given the disputed properties
nd the witnesses for the Two. other
ompan MES armly opposed. Moreover,
The chief OF ordnance advised the
gummittee that the contracts should
fulfilled and the moral oblisa-
on .. the War Department re
ioyed" in that way, while the act
81g judge -adyocate-gen OF the
y,rmy h-ld the contracts were null
Il nd void" and charlottesville"
Meanwhile the committee deiiber-
ted. None Of the seventeen lawyer
aembers was able to md IA way out
= ( the diHicult position II held that
he full membership would accept.
Delay after delay resulted while cf-
or,s 10 dratt report which House
&lembers impatlently called for were
continued
Appeal Ia Dnugherty.
Chairman Kahn finally appealed TO
4,ttorney- General Daugherty for an
pinlon Of the legality OF the con-
Tracts and was informed that the
4hicf law officer could not give an
pinion TO legislative officials Of the
Government. He appealed to Secre-
6ary Weeks, as head of the executive
Il department. which negotiated the
Contracts. to request an opinion from
8ne Attorney General.
The request was made and fol-
lived shortly by tee delivery OF the
8pinion which was transmitted with
ut comment to the Military COM
- littecrnen. The document in effect,
0ubstantiatcd the opinion already
ven by the acting Judge advocate
3eneral and made no mention OF the
moral obligations" General Williams
nd other ordnance officers declared