The Hartford republican. (Hartford, Ky.) 18??-1926, 1922-02-24
new SHOALS Bid
UP TG congress
Alabama Power Company's
Offer Barrier In
Ford's Way

tomorrow for acceptance or rejec-
tion the Alabama Power Company's
offer to purchase and lease the Mus
Gle Shoals nitrate and waterpower
projects submitted to him Tuesday,
added to the possibilities of further
delay in Congress of consideration
of Henry Ford's offer.
The Alabama company's offer, 1t
was said, would be addressed tomor-
row to the speaker of the House and
president OF the Senate and be re-
ferred by them probably to the Mill
tary Affairs Committee of the House
and Agricultural Committee of the
Senate, both of which are investi-
eating the Ford proposal. Chairman
Kahn announced tonight that the
House body would include its study
of the Ford offer before undertake
ing hearings on the new proposal,
but would not report them separate
ly to the House.
The plan in recomm ending accept
] ance or rejection of the offers to the
full membership of the House, the
chairman said, would be to prepare
la joint report on all proposals Con-
gress might receive. In this man
ner, it was explained, the Ford Of
fer would remain in the committees
hands, preventing action by the
/ House until all proposals the war
secretary might submit were investi-
gated.
Weeks Sees Better Offer"
Mr.. Kahn said he expected to con-
clude the hearings on Mr. Ford's Of
fer this week and would immediate
ly begin an examination of that from
the Alabama Power Company which
Secretary Weeks indicated today
considered a better offer" in some
respects than that of Henry Ford.
merits of each offer he transmits
will be made known to Congress by
letters of transmission accepting the
proposals.
The House committee today inter-
rogated ]. o. Hammitt, vice president
of the Air Nitrates Corporation, a
subsidiary of the American Cyanamid
Company, of Maine, who defended
the rights of the former concern to
purchase nitrate plant No. 2 at
Muscles Shoals upon as favorable
terms as the government might ac-
cept from other private enterprises.
He submitted contract signed by
the corporation and War Department
officials under date Of June S,191S,
when it was agreed to build the plant
and which contained section ex-
tending optional privileges to the air
nitrates subsidiary to buy the prop
erty should it be sold by the govern
ment.
"This constituted a solemn and
binding agreement" Mr.. Hammitt
said, adding that if it was violated
by the government thru acceptance
, of the Ford proposal, the corporation
would reluctantly instruct its attor-
neys to resist such action in the
courts. He asserted that a decision
by the government to disregard the
agreement would reduce the standard
of business morality to a lower de-
gree than ever had been approached
by a private concern.
Claim Prior Right.
| He declared the proposal TO "give
l the plant to man who did nothing
to develop it," and in addition, "give
e him the cheapest water power on the
= American continent" would be a
= violation of the governments pledge
: to the air nitrates corporation which
he declared, had placed its every ia
D cility at the disposal of the country
y when the war needs were greatest
: He explained that the nitrates corpo'
4 ration and the cyanamid company
e had lost money on government con
4 tracts, and denied statements pre-
I viously made before the committee
that the ten men who created the
former concern had made profits ag
gregating $4,000. 900 from Il capita
. of $1,000 or $1OO each.
The witness explained that theil
: nitrates subsidiary was formed in
y order that the holders OF syanamit
= company stock might be protected IN
: failed to be carried out, but added
S that in each case the contracts were
!, filled 100 per cent.
"All we asked for the use OF the