Arizona republican., 1922-02-09
WEEKS GIVES
REASONS FOR
DIRECTING To.
.FORD'S OFFER
Secretary of War Doubts
Ford's Ability To Make
Cheap Fertilizer At The
Muscle Shoals Plant
TRenuhlloan A. p. Leased Wlrel

WASHINGTON. Feb. s-The open
ing session Of the house military
committee investigation of the Ford
contract offer for purchase and lease
of the governments properties at
Muscle Shoals, Ala, revolyed today
principally about clauses relating to
the manufacture of fertilizers for the
nations agricultural needs. Secretary
Weeks, appearing as the first wit
ness, repeatedly declared his doubt
as to whether fertilizers could be
manufactured cheaply at Muscle
Shoals and expressed his beliefs that
amendments to safeguard better the
governments interests in the $780,
O00, 600 investment already made
should be incorporated in the offer as
drafted.
TO all other government policies
regarding the lease OF real estate or
other properties and permit a 100
year lease of the water power ma
chinery and dams in Alabama, he
asserted repeatedly would be an un-
wise act and should not be permitted.
He advocated a reduction in the
time clause from 100 years to so in
the event congress should decide to
accept the offer.
Another reiterated suggestion In
volving a change in the present lam
guage Of the offer, he pointed out,
would require a fixed capitalization
for the operating company Mr. Ford
is to create The secretary said no
provision existed in the offer guar
anteeing a capitalization which the
government might recover in the
event the contract was violated. A
provision OF some sort was advisable,
he said, which would permit the gov
ernment to impose through legal
means a penalty or forfeit should the
company fail to carry out the offer.
Anything might happen in the
next 100 years." he said "While /
have not the slightest doubt as to the
solvency OF Mr.. Ford nor of his in
tentions to execute the agreement in
good faith. neither he nor / wi1l be
here during the life Of the contract.
In considering this question we are
providing for the future genera
tons"
Regarding the manufacture of fer
tilizers and their cheap delivery to
the farmers, Mr.. Weeks said there
was no reasonable certainty in his
mind that was possible.
Weeks is Doubtful
ATf I thought that development Of
the propect by Mr.. Ford would eff
of fertilizer" he said, II would vote
for his proposition. If l were in con-
gress. But / am so in doubt as to
that I should hesitate to give any
advice unless assured of guaran-
tee." Asked what the annual con-
sumption Of fertilizer was he said it
approximated $4,000, 900 tons and the
Muscle Shoals plants could only pro-
duce at maximum of 100000 tons.
That amount, he asserted, would
not in his opinion, affect the existing
market. He previously had told the
committee that Mr.. Ford had de-
cIined to guarantee fertilizer produc-
ton over a given number Of years
and had informed him in converse
tions that he would manufacture the
commodity at a loss.
Although pressed repeatedly the
secretary did not express an opinion
as to whether the offer should be
accepted or rejected by congress.
Chairman Kahn announced that he
had telegraphed Mr.. Ford twice re-
questing him to come before the
committee or send representatives In
the second message Mr.. Kahn said
he requested the manufactures to APP
pear between the ninth and eleventh.
but said later that Monday would
be satisfactory.
DETROIT. Mich, Feb. S-If his
testimony before the house military
committee at Washington with re-
spect TO the Muscle Shoals project
is urgently needed" Henry Ford will
appear before that body, he told the
Associated Press tonight Mr.. Ford
made the statement when informed
that Chairman Kahn of the commit
tee had asked him to appear in Wash
ington between Feb. 8 and II.