Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-02-03
PROMPT ACTION
MARKS RECEIPT
Of FORD OFFER
Speaker GiIIett Sends Pro-
poSaI to House Military
Affairs Committee; Weeks
Is Neutral.

Washington. Feb. -HrOHlpL
action marked the reception by
congress today of the Ford propo-
sal for lease and purchase OF the
Muscle Shoals, Ala, nitrate ana
water power projects as referred
to the house by Secretary Weeks
for it's decision and afterwards for
consideration by the senate. Speak
err Gillett sent the offer Immediate
~ on its receipt to the house mill
tary affairs committee while mem
bers of the interstate commerce
committee indicated they might
Nseek a change of reference to their
body.
Chairman Kahn, Of the military
committee, commended, however,
that the report had properly been
referred to his committee. Mr..
Kahn said expeditions action by his
committee could be taken.
Evidences of equally rapid action
by the house after the committees
report with reference to recon-
mendations that the proposal be
rejected or accepted is made to the
body, were somewhat more dim
med. Indications were that house
members would discuss the question
at some length before final vote
could be reached.
Frederick e. Engstrum, who has
submitted to Secretary weeks an
amended proposal for the lease and
operation of the Mucle Shoals prop
critics, issued q statement today al
ter publication of the Ford pro-
posal.
my proposal" Engstrum said,
contains no conditions which
might prevent the manufacture OF
nitrates. The entire development
of the project will be devoted 10
the manufacture of nitrates and to
nothing else. The present nitrate
plants at Muscle Shoals were de-
signed to produce nitrates for eN-
plosiYes and cannot be used 10
. manufacture nitrates for fertilizer
In my proposal, agree to re-desl9h
at once these plants at an eXpendl-
ture of 100000 if necessary, and
produce commercial nltrates by the
best process now known.
ut is we'll known, however, that
ntrates for fertilizer cannot De
profitably manufactured by fixation
of nitrogen from the air by any
present known process, but every
one hopes and believes that I'M
proved processes can be developed
to produce such results"
MY proposal provides the
statement concludes, that wher
nitrates can be made at less than
the cost of the Chilean product
that the money arising from the
sale Of excess power which had De-
fore been used to enhance the man,
ufacture of nitrates, will be turned
into the treasury of the UnlteC
States. Thus, it will be seen thai
under my proposal the government
will receive an income from the
start estimated at more than 80
100000 per year, which will be de
voted to financing the productlor
of nitrates as long as necessary
and then to receive the same as
cash income" 1872
The Ford proposal was sub
mitted to congress by Secretar'
Weeks for "such action as congress
may deem appropriate" The onl,
suggestions contained in the lette
of transmission related to specifi
clauses in the contract and the de
{ STABILITY of amendments Whicl
would, in the event the proposal b
accepted by congress further sate
guard the governments interests
"Tn the event Mr.. Ford's pro
posal is accepted he declared
''the government must make nev
appropriations amounting to S4o.
100000 to $50.000,000 of whicl
Mr.. Ford will have the benefit TO
approximately 100 years at pc
cent"
The question Of unemployment
is recognized as factor to be con
sidered by congress in connection
with its treatment of the Muscl
Shoals question.
"At this time" he points out
"when there is a large amount o
unemployment, it is not withou
importance to consider the advant
are to the nation of the employ
ment Of the large amount of labo
required in undertaking this devel
opment.
"Therefore urge that congress
give early consideration to TN
matter. not only to settle contro
verified question, but to furnish EN-
ployment on a large scale
In A brief summary of the ORE
which the secretary Incorporates
his letter of transmission he men
lions the considerations running t
the government as follows:
"(A) Four per cent on part o
the capital necessary to complet
a the construction of the power pro
iect. mo interest is proposed to b
mid upon that part of the govern
I,,ont,e Improvement which goes t
nav for lands and flowage Tor aai
No. 9, which item is estinateu a U U
the engineers to exceed $Z,oVV'VV
in probable cost
COB The payment OF SUI
semi-annually into a sinking .un
calculated to produce about S49i
o0o 600 at the end of the leas
neriods, This payment amounts I
sA6.746 annually. In other "oru
Mr. Ford proposes to pay approx
n,atelv $40. 100000 at the end c
tbe lease period provided the gov
ernment has been able to invest n
novnents at 4 per cent per annun
@CCo Mr., Ford proposes to pa
ear ooo a wear for the upkeep {
dam No. . and its LOCKS anu ".
sum of 100000 year FOR the u
keen OF uall NU' q uihN 49, ,
These Tfes payments are expected t
meet the ordinary upkeep expens
with which the government J
charged. Mr.. Ford assumes IN
responsibility for upkeep and r.
nair of the power houses aii
equipment for that Ultimately sue
equipment is expected to be turne
back to the government IN appLo1
imately as good condition as VINE
received. ,,.os NJ
Ford's company to operate mira,
plant No. 2 to it's approxima