The Birmingham age-herald., 1922-02-22
SECRETARY OF WAR. INCLUDES COMMENT. W|THNEWPROPOSAL.
Points Out Advantage of Con- pany's Offer to Complete Wilson Dam at Its
 Own Expense
By Associated Press

Washington, February Zl.-Con- gross received today the offer of the Alabama Power company for the purchase and lease of the govern ment's nitrate and power projects at Muscle Shoals. In referring the proposal to the legislative body for final decision, involving it's accep- tance or rejection as competitor to the offer already made by Henry Ford, for the same properties, Secre- tary Weeks made no specific recom- mendation other than to say indi- rectly he believed the new offer should be referred to the committees of the Senate and House now en- gagged upon consideration of the Ford offer.
 The letter of transmission ad- dressed to the president of the Sen ate and speaker of the House, con tained 12 comments upon as many provisions of the power company 8 proposal, all of which the Secretary of War said either were desirable or advantageous to the governments in- terest in the disposal to be made of the Muscle Shoals properties. The company's offer to complete the Will son dam at it's own expense under a license subject to the provisions of the waterpower act, the letter said, had lthe advantage of proposing to relieve the government from further costs of completion.
 Return on Money
 Delivery of free power to the gov ernment or it's purchase by the com pany in the event the power was not needed as proposed by the Alabama company, was said to be an advan.- age in that it would offer return on money already invested by the government.
 Sale of the Warrior steam plant and other facflities for 3S.0eo,oo0. toss the cost for locks and naviga- ton structures, estimated at about s2.5o0.000, as proposed in the offer. the letter added, would permit a substantsiaI return on the investment made and serve also to keep them in public service.
 Another provision of the offer which the secretary said was worthy government of ownership in the two nitrate plants and the Waco quarry, representing an investment of s75,- 900 900.
 Maintenance of the dam, power plant and locks at the company's ex- pense also was characterized as distinct advantage to the govern ment"
 Other Favorable Provisions
 Other provisions singled out for comment included that for bringing the Wilson dam project under local taxation laws; for taking over and operating the waterpower project by the United States when public safety demanded; for limiting the lease period to 50 years; for an agreement to begin completion of the water power project immediately and guar antee the financial ability to com plete the undertaking; for providing service ito every one without dis elimination and for permitting an arrangement by which the option claim of the Air Nitrates corporation could be adjusted, in accordance with the opinion of the judge advocate general of the army.
 Finally. the secretary says, there is probably no necessity for the con struction of dam No. 3 at this time" and the lack of provision in the offer for it's completion does not detract from the proposal.
 Probable Course
 Reference of the offer probably by the Senate to the agricultural com lmitee and in the House to the mili- tary affairs committee.
 The House committee concluded it's examination of J. O. Bammit of the Air Nltrates corporation of New York, who insisted that the option for the purchase of nitrate plant No. at Muscle Shoals given that com rany by the War department when the contract to build the plant was signed on June s, 1918, should be recognized by the government even to the exclusion of the Ford offer.