Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-02-23
FORD GIVES APPROVAL
TO CONTRACT CHANGES
Lease and Purchase Tender
Modified to Meet Com.
mi,tce Views.
FINES .rnornr AT 3 rEn CENT
Definite Statement Mntie Hold Ing
Proht ON Fertilizer Mt stated Sum
Bctwecn Hands OF Manufacturer
and Consumcr,
IBy Associated press.l

lDS HSoOti"hSN icoS'I
WASHINGTON. Feb. 2e.-Thrce
alterations in tho proposal made by
Henry Ford for lease and purchase
OF the governments nitrate and
power projects at Muscle shoals.
Ala. have been agreed to by the De-
,roit manufacturer. They are.
To write into the proposed con
tract definite guarantee 10 proouc.
fertilizers in their finished form at II
given annual minimum tonnage.
To capitalize the operating com
pany which is to be created for the
purpose Of supervising the Muscle
Shoals operations.
To revise the language OF the so
called farmers clause In order to
Insure the delivery of fertilizers from
tho producing plant To the consumers
at profit not exceeding S per cent
based on the cost OF manufacture.
Ford Approves Changes.
Mr.. Ford's approval Of these modi-
ncations was announced today by
". y. Mayo, chief engineer for the
Ford Company. upon his return from
Detroit, where he went last week to
confer with tho Detroit manufac
turer. Formal announcement 10 the
House Military Committee members
who are Investigating the offer In
Congress Will be made by Mr.. Mayo
ms soon as arrangements for him I"
testify are completed. probahi! on
Friday.
While the three alterations were
regarded by some committee mem
bers as greatly improving the form
nf the proposal and adding TO It's
value as they viewed Il from the
governments standpoint. other mem
hers said Il would have been made
more acccpable> II Mr.. Ford had
agreed additionally TO reduction
In the lease clause from 100 70 mt!
{years as suggested rs Secretary
Weeks. when he testified before the
committee.
on this point. however, Mr., Mayo
explained that Mr.. Ford still ieit tha'
,hc ffty-ypar period was too snort
n time TO Justify the financial Invest
mont necessary unde. the proposed
contract for development or the
Muscl. shoals water power facilities
and nitrate plants in the section az
,hc ,oun,rv where they are situated.
Production Guaranteed.
The agreement to manufacture
finished fertilizers instead of com :
hounds" il was explained, was maze
10 assure the production OF that com
modify. which several committeeman
had declared was not an obligation
under the existing language OF the
offer MIR. Mayo today did not re-
ycol the amount; OF production guar
an,cc.
The hxed capital proposal. IL was
e.pInin.d. made the operating com :
many liable 10 the government dur :
inc Nh. lifetime Of the contract ana
W., IN a certain sum which the gov
crnment might recover as torte''
I'm the event OF failure TO execute
the agreement by the operating con :
Germ. The hgura to he written In
tho agreement was withheld by MT
Mayo until lie appeared before the
& committee.
The third alteration was intended
10 make IT impossible Tor any pur
chasing company TO buy the teriiiiz-
ers and retail them To the farmers
at prices exceeding the mnnufactur-
ing costs. plus per cent. Commit
t,emen had declared their fear while
MIR. Mayo was being examined last
week that the farmers, would be
: held up" by purchasing concern
and had insisted that clause oe
inserted in the contract which would
provide for distribution Of fcrtiliz-
crs from the source to the consum
crs direct Mr.. Mayo explained to-
day that the Ford automobile
agencies throughout the country
could be utilized FOR distributing
purposes. In; said the exact plan for
fertilizer distribution had not been
decided.
Holds One Session.
The committee held only one meet
ing today ION account OF the holi-
day. Gray silver. Washington rep
rcsentative of the American Farm
Bureau Federation. testified that the
! 100000 farmer members Of that or
Eanlzation had "unreservedly In
dorsed" the Ford offer and had full
confidence that they would zee,
cheaper fertilizers and other com
modities which he would manufac-
ture at Muscle Shoals.
After Mr.. Silver concludes his
; statement and Mr.. Mayo IL given n
hearing. spoxesmen for the Alabama
Flower Company Will testify regard
Ing the option they claim for pur-
| chase of the Warrior steam plant
and substations held under the con-
tract by which the plant WIS built
Then, Chairman Kahn announced TO-
day, the committee will! end the in
vestigation of the Ford proposal and
begin imm ,diately upon consideration
of the Alabama Power Company's Of
fer. involving lease and purchase OF
1.-THE Muscle Shoals properties, which
was, referred 30 the committee by
the House today.
PETERSBURG PEANUT MARKET.
(keported by Rodgers. Plummer G.