The Birmingham age-herald., 1922-05-02
FORD'S |NS|STENCE
 HAS COMMITTEE
 GREATLY RUFFLED
lnslstence on Gorgas Plant and 1OO-Year Lease on Muscle Shoals Cause of
 Dissatisfaction
Ky HUGH W. ROBERTS Washington Bureau, The Age-Hera1d.
 h0u Dayidgou HutIdiui


 Washington, May 1.-(Special. )-- As result of the hearing accorded this morning to w. B. Mayo, repre- sentative of Henry Ford, by the Senate committee on agriculture and forestry, it was unmistakably re- vealed that the committee is per turbed because of MT. Ford's insist ence on possessing the Gorgas steam plant, his insistence that the lease on Muscle Shoals be for 100 years, and the indefinite nature of his guarantee to produce finished fertilizer.
 Senator Norris, chairman of tho committee. directed his interroga- tions towards an elucidaton of the first two problems. and regarding the proposed lease period. Senator Har- reld of Oklahoma admitted that Fords insistence on a possession ot 100 years sticks in my craw more than any other unfavorable feature"
 Regarding the agreement of Ford to acquire the governments interest in Goegas with the understanding that he would defend any litigation which the Alabama Power company might institute, Chairman. Norris ask ed MT. Mayo what would be his action were Ford to lose in such litigation.
 Ford Would Get Money
 In that event" replied Mir. Mayo We would sell our interest to the Alabama company, in accordance with the contract"
 Then Ford would get the money and not the government" persisted Norris. Mayo answered in the affirm ative. and then valued the Gorgas property at 5000. 900, the amount that Ford is willing to pay for the entire government properties at Cor gas and Muscle Shoals.
 Senafaf Norris pressing the wft ness, asked pointedly. why shouldn't we live up to our contract with the Alhama Power company"
 My mtnd is not sufficiently legal to answer" replied Mayo.
 Your insistence on possessing Gorgas Is getting Congress into difficult situation stated Norris. especially as 1t appears that you do not need it."
 'It Is the source of the cheapest supplementary power" answered Mayo. The witness added that he had made no preliminary arrangement with the Alabama Power company for cooperative use of Gorgas, but that he thought he could make arr Iangements similar to that existing between the company and the govern ment He added that Ford would not agree not to sell any of the property in event that he obtained it.
 Would Seek Relief
 Regarding fertilizer production, Mayo declared that If 1t was demon strated that such production could not be continued save at a loss. Ford would petition Congress for relief from terms of the contract. He de- clared himself confident however, that fertilizer could be produced and sold at prices half that presently paid, and hinted at a secret process being developed by Ford which would put the Cyanamid and Haber pro- cesses entirely out of business. When Chairman Norris urged that Mayo take Congress into his confidence, l0ulnR that Dt Sucu dNtioH n Sie"e difference in the situation might de- velop," he declined with the excuse that plans had not be consum- mated"
 As reason for Ford's, insistence that the proposed lease extend for 100 rather than 50 years, as law pro- viues Mayo explained that the scheme of the manufacturer comprehended an expenditure of s5o,oo0,000 in de- velopment and that 50 years would be too short a period for realization cn such an investment
 He stressed the face that all avail a ble power would be needed at Mus cle Shoals. and that it's dissemination to municipalities would ultimately