Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-05-30
PROPOSAL Of FORD
CHANGED LITTLE BY
HOUSE COMMITTEE
Engineer of Detroit Manufac-
turer to Present Report to
Motor Magnate- Steam
Plant Withheld

WASHINGTON, May 27.-(By the
Associated Press).-Bidders compel
ing for development by private en-
ternrise of the governments $lO6''
600 900 war-initiated projects at
Muscle Shoals, Ala, were given
their answers today by the mouse
military committee in the form OF
a counter proposal framed by the
committeeman.
None of the offers submitted by
the bidders and forwarded to con-
eress BY Secretary Weeks for fin
81 decision were found acceptable
That made by Henry Ford came
closest to winning the award in
that it was made the basis upon
which the committee built. its reply
The committee acted in a way, it
was explained, which will leave its
decision subject to acceptance by
any person or interest willing to
meet it's terms and which will per-
nit it, at the same time, to sup
port it's counter proposal before the
house when the subject of Muscle
Shoals is acted upon in that body.
Bidders Call for Answers
No time was lost by the bidders
in calling for theifs answers: w. B.
Mayo, chief engineer for Mr.. Ford,
was the first to receive a copy of
the committees plans. He, repre-
sentatives of the Alabama Power
company, Frederick Engstrum, and
Charles Parsons, makers of the 9th
err bids. were asked to advise the
committee early next week wheth-
er they would accept the proposal.
Mr.. Mayo said he would confer with
Mr.. Ford in Detroit before giving
an answer and left here for that
purpose a few hours afterward.
Some committee members were
represented as being confident that
the plan worked out by the COM
mittee would be accepted by Mr..
Ford, despite the elimination of the
Gorgas, Ala, steam plant from the
properties to be disposed Of with
Muscle Shoals.
Others, however, apparently lack,
ed the confidence their colleagues
evidenced in this regard and called
attention to the repeated declara-
tons of Mr.. Mayo and other wit
H., w, INNrH'c
offer had to be accepted "as a
whole and not in part"
Chief Alterations
Attention was called to testimony
in which representatives of Mr..
Ford held the Gorgas property
necessary and would decline tG
agree to a proposal which did not
include the Gorgas plant among the
other units to be disposed of with
the Shoals projects.
Care was exercised by the com
mitteemen to'keep the details of
their plan a secret until the bid
ders had received it. including Mr..
Ford in Detroit. 1t was understood
however, that the plan was in eff
feet the Ford modified offer and diff
fered only in the language added
by the committee, replacing in many
paragraphs that which was struck
out in order to insert committee
amendments.
In brief, the committee altera-
tons were represented as being
chiefly important with respect to
the Ford offer in that they eliminat-
ed the Gorgas plant, required a
paid-up cash capital of $10,000,000
or more for the operating company
to be created for development of the
Shoals, made compulsory the yearly
production of finished commercial
fertilizers on the basis of 10000 tons
of fixed nitrogen, and specified the
manner of appointment of the di-
recting board of seven members
whose duty would be to examine the
company's books and prevent the
sale of fertilizers at profits exceed
ing 6 per cent of the cost of pro-
duction.
Weeks Opposes 1O0-Year Lease
The provision of the Ford pro-
posal fixing 100 years as the lease
period for the Wilson dam and other
projects not purchased outright by
the Detroit manufacturer remained
unchanged in the committee draft, it
was understood, as well as the pro
visions relating to the financial
phases of the proposed transaction.
In this connection, it was recalled
thai Secretary Weeks one recon-
mendation to congress made when
he transmitted the Ford offer there
was in opposition to the 100-year
lease. He also testified before the
house committee that, in his opinion
it would be unwise to change the
governments policy of restricting
leases on public lands and proper:
ties to fifty years.
The secretary is to appear Thurs
day before the senate agriculture
committee to testify on the pro-
posals pending before that body for
consideration, and to report to the
senate with regard to Muscle Shoals.
The Ford offer will be discussed at
that meeting, and, it is expected the
secretary will reiterate his statement
on 100-year leases.
The house committee adjourned
! TODAY until Monday, when it hopes
to receive reply from the bidders
it save its answer today. 1t was
regarded as improbable, however,
that Mr.. Mayo would return before
Wednesday, taking advantage of the
Memorial day holiday.
The bill discussed by former Rep
rescntative Lloyd, of Missouri, and
introduced in the senate by Senator
Norris, of Nebraska, at request of
j. H. lowering, of Los Angeles, Cal,
engineers, was introduced in the
house today by Representativ"
NORM, Republican, Pennsylvania. l.
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