The Birmingham age-herald., 1922-02-09
FEARS FORD CAN'T MAKEFERTILIZER
 CHEAPLY AT PLANT
Thinks Contract for Lease Should Be Changed From 100 to SO Years if Pro-
 posal Accepted
By Associated Press

Washington, February S.-The opening sessions of the House mili- tary committees investigation of the Ford contract offer for purchase and lease of the governments properties at Muscle Shoals, revolved today principally about the clauses relating to manufacture of fertilizers for the nations agricultural needs. Sec retary Weeks of the war department, appearing as the first witness, re- 2 peatedly declared his doubt as to whether fertilizers could be manu- factured cheaply at Muscle Shoals, and expressed his belief that amend ments to safeguard better the gov ernment's interests in the $106,000,- 900 investment already made should be incorporated in the offer as it was drafted.
 To alter existing government poli- eies regarding the lease of real estate or other properties. and permit a 100-year lease of the water power machinery and dams in Alabama, the secretary asserted repeatedly, would AS AA NAo% F1NNr SHOuAQ QOl OG permitted. He advocated a reduction in the tina clause from 100 years to 90, in the event Congress should de- eide to accept the offer.
 should Fix Capitalization
 Another often reiterated suggestioi" involving a change in present lln- guage of the offer which the secreA tary pointed out would require a fixed capitalization for the operating company Mir. Ford is to create. The secretary said no provision existed in the offer guaranteeing a capital ization which the government might recover, whole or part, in the event the contract was violated. pro- vision of some sort was advisable, hs said, which would permit the govern ment to impose through legal means a penalty or forfeit should be com pany fail to carry out the terms of the offer.
 Anything might happen in tho next 100 years,H he said. While 1 have not the slightest doubt as to the solvency of Mir. Ford, nor of his intentions to execute the agreement m good faith, neither he nor will be here during the life of the contract. In considering this question we are providing for the future genera tions."
 Regarding the manufacture of fer tilizers and their delivery to the farmers of the country, MT. Weeks said there was no reasonable cer- tainty in his mind that was possible.
 Fears Fertilizer Clause
 If I thought that development of the project by Mir. Ford would effect a material reduction in the cost of fertilizer" he said, T would vote for his proposition If I were in Con gress But I am so in doubt as 10 that I should hesitate to give any advice unless satisfied of guaran- tee" Asked what the annual consump- lion of fertilizer was, the secretary said it was approximately TS,000,OOO ions. and the Muscle Shoals plants could only produce at maximum aOo.0oo tons. That amount, he as serted. would not, in his opinion, af- fect the existing market.
 9The war secretary previously had ,old the committee that MT Ford had 6leclined to guarantee fertilizer pro fduction over a given number or : resrs and had informed him in con- versations that he would not manu- fracture the commodity at loss.
 Although pressed repeatedly
 hx several committee members,
 the sccretary did not express an
 opinion as to whether. the of
 fer should be accepted or reject
 ed. At one point he was asked
 whether the properties should
 he saISaged or Mir. Ford's offer
 accepted, but he replied only that
 the xovernmcnt would not sal
 wage the project in any event
 and repeated his intention to
 complete the Wilson Dam if the
 offer was rejected. He said the
 dam could he completed without
 taking dollar from the treas
 ury bz bond issue based on
 commercial value of the propect
 as q water power development.
 Chairman Kahn announced that he had telegraphed Mir. Ford twice re- questing him to come personally be- fore the committee or send repre- sentatives to answer questions for him. In the second message, Mr. Kahn said he requested the Detroit ninth and eleventh, but said. later that next Monday would be satisfac- aftory.
 H Some concern was evident on the J part of the committee members as tc whether the offer would be with drawn from their body and re-re. ferred by the House to the Agricui- tural committee. An open fight or the floor was expected either tomor. row or Friday, 1t was said. Mean. while, the military committeeme r prepared to defend their jurisdic- ton In the case.
 Chairman Kahn planned to inter. rogate tomorrow Major General VII. Hams. chief of ordnance. Major Gen eral Beach, chief of engineers, ana
 Continued on page two.