The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-02-15
WANTS TERMS
MADE BINDING
So that Plant Will Be Operated
= Continuously for the Manu-
facture of Fertilizer.
MAYO SAYS FORD is
ACTING IN GOOD FAITH
If Congress Accepts the Offer
the Detroit Manufacturer
Will Fulfill Contract.
tsy Tho Associated Press)

WASHINGTON, Feb. 14-Henry c..
Wallace, secretary OF agriculture, looks
with favor upon Henry Ford's offer for
purchase and lease Of the governments
nitrate and water projects at Muscle
Shoals, Ala. III its terms are sufficiently
definite and binding to make sure the
plant will be operated continuously for
the manufacture OF fertilizer"
DR.. Richard C. Toleman, director of the
fixed nitrogen research laboratory of the
department, announced the secretarys
position with regard to the Ford offer in
an authorized statement, which he read
today before the house military commit
tee. The secretarys views as expressed
by the witness were that IL the terms
were as he had outlined, the proposal
would result In making available con-
siderably increased supply of fertilizer in
time OF peace and give us assurance OF
adequate supplies OF explosives in case
OF need"
The statement was read by DR.. Tole-
man after the committee had completed
an examination. lasting more than five
hours, by w. b. Mayo, chief engineer
and personal representative of Henry
4
peated statements that Mr. Ford In
tended 70 manufacture fertilizers in their
completed form at the maximum capacity
OF the Muscle Shoals plants and would
make every effort to manufacture them
at a minimum cost to the farmers, using
every known formula and working his
chemists meanwhile to discover improved
methods.
Mr.. Mayo took issue several times with
committee members who called attention
to the section of the offer regarding fer
tllizer manufacture saying there was no
provision in the offer to compel the
some necessary ingredients In each in
stance, the witness declared it was Mr..
Ford's intention to execute the contract,
in the event congress accepted it, in
good faith and that included the pro-
duction> OF fertilizers.
AT one point Mr. Mayo said the De-
troit manufacturer had been invited by
the government to make the offer and
congress could take it. or leave il, at
it's face value" This announcement fol-
lowed heated exchange between the
witness and Representative Miller, re-
publican, Washington, regarding the
financial obligation the government would
assume under the agreement. The Wash
ington member insisted that the financial
burden on the country would exceed by
several millions that assumed by Mr..
Ford while Mr.. Mayo submitted esti-
mated expenditures Mr.. Ford would
make which totalled more than SS,000 900
in excess of Mr. Miiler's figures. The
oolloquy ended without an agreement be-
tween the two.
Chairman Kahn announced at the con-
clusion of the hearing today that J. w.
worthington. another of Mr.. Fords ad-
visers in the Muscle Shoals transaction,
would be asked TO testify tomosrow. Mil
ton Whitney, soil physicist and chief Of
the bureau of soils OF the agriculture de-
partment, also was requested 10 appear
at tomorrow's sessions.
As the hearings progressed, Mr.. Kahn
said, IL appeared that the committee
would not be able to conclude its investi-
cations this week and probably the
meetings would be continued over an
other week He had hoped to terminate
..she hearings and begin executive con-
sideration OF the Ford offer with the COM
mittee next week.
Another event scheduled for tomorrow
was the hearing to be held at the war
department by Secretary Weeks on the
offer OF frederick C. Engstrum of wilnl-
ington, N. e. It was considered prob
able that Secretary Weeks would submit
that proposal 90 congress before the sell
ate and house committee has disposed Of
the Ford offer.
The senate agriculture committee took
its frst action today on the Ford pro-
posal. II agreed to begin hearings Tues
day with Major General Beach, chief of
army engineers. and members OF a dele
cation from Tennessee, including Cover
nor Taylor, who are awaiting to testify
before the house committee.