The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-02-25
CHANGES IN
FORD'S BID
Approval Announced by W. B
Mayo, Chief Engineer Of
Motor Makers Company

Washington. Feb. 22-Thrce al
i teralions in the proposal made by
Henry Ford for lease and purchase
of the governments nitrate and
power projects at Muscle Shoals
have been agreed to by the De-
troit manufacturer. They are:
]. To write into the proposed
contract definite guarantee to
produce fertilizers in their finished
form at Il given annual minimum
tonnage.
>. TO capitalize the operating
capacity which is to l.c created for
the purpose OF supplying the Mus
clio Shoals operations.
8. To revise the language OF
the so-callcd farmers clause in or
der to insure he delivery OF fer
! tilizcIs from the producing plant
to TIE consumer at profit not OK
ceedinS s per cent. based on the
cost of manufacture.
Mr.. Ford's approval Of these
! notifications was announced today
by w. B. Mayo. chief engineer for
! the Ford company, upon his return
! from Detroit where he went last
week to confer with the Detroit
! manufacturre. Formal announce
ment to the house military commit
| tee members who are investigating
| the offer in congress Will be made
by Mr. Mayo probably on Friday.
While the alterations were re-
Sardcd by some committee ncm-
bcrs AS greatly improving the form
! OF the contract and addin. to its
!! value as they Eicw it from the gov
/, crnmtnt's standpoint other mem
| bers said it would have been moro
| acceptable if Mr.. Ford had also
F; agreed TO reduction in the lease
clause from 100 to 80 years as Sus-
gcstcd by Secretary Weeks when
he testified before the committee.
On this point however Mr.. Mayo
explained that Mr.. Ford still held
! that the 30 year period was too
short Il time TO justify the financial
/ investment under the proposed
contract FOR development of the
i Muscle Shoals watcrpowcr facilities
+; and nitrate plants in the section
! of the country where they arc sit
uated
The agreement to manufacture
! finished fertilizers instead OF COM
| pounds. 1t was explained, was made
to assure the production of that
commodity which several commit
tocmcn had declared WAS not an
Obligation under the existing Ian
GuaSc Of the offer. Mr.. Mayo today
did not reveal the amount OF pro-
duciion guaranteed.
The fixed capital proposed. IT was
explained made the operating COM
I panv liable 10 the government for
; the life Of the contract and set up a
certain sum which the government
I might recover as forfeit IN the
event Of failure TO execute the
! contract by the operating commit
! tee.
The third alteration was intend
! ed 10 make it impossible for any
company TO buy the fertilizers and
retail TO farmers at prices exceed
| inS the manufacturing cost plus S
per cent. Committeeman had de-
clarcd their fear, while Mr.. Mayo
was being examined last week, that
the farmers would be held up" by
a purchasing concern and had m
sisted that a clause be inserted in
the contract which would provide
for distribution Of fertilizers from
tho source TO the consumer direct.
Mr.. Ma*o explained today that the
Ford automobile agencies through
out the country would be utilized
for distributing purposes but said
the exact plan for fertilizer distrl-
button had not been decided.
The committee held only one
| meeting today on account Of the
holiday. Gray Silver, Washington
represcntativc OF the American
Farm Bureau federation. testified
that the 100000 farmer members
OF that organization had "unre-
scrvcdiy indorscd' the Ford offer
! and had full confidence that they
would get cheaper fertilizers and
other commodities which he would
manufacture at Muscle Shoals.