The Birmingham age-herald., 1922-02-15
WALLACE FAVORS J. 5. ACCEPTANCE
 OF FORD'S OFFER
Will Result in Great Good if Plant Operated for FertiIi- ger Manufacture, Says
 Statement
By Associated Prnn


 Washington, February 14.-Henry c. Wallace, Secretary of Agricul- ture, looks with favor" upon Henry Ford's offer for purchase and lease of the governments nitarte and water power projects at Muscle Shoals If it's terms are sufficient ly definite and binding to make sure the plant will be operated continu- ously for the manufacture of fer tilizer."
 Dr. Richard c. Holman, director Of the Fixed Nitrogen research Iabora- tory of the department, announced the secretarys position with regard to the Ford offer in an authorized statement winch he read today before the House military committee The Secretary's views as expressed by the witness were that if the terms were as he had outlined the proposal would result in making available considerably increased supply of fer tilizer in time of peace and give us assurance of adequate supplies of ex- plosives in case of need"
 Makes Definite Promise
 The statement was read by Dr. Tol- man after the committee had com pleted an examination lasting more than five hours of " B. Mayo, chief engineer and personai representative of Henry Ford. Mir. Mayo's testi- mony included repeated statements that MT. Ford intended to manufac- ture fertilizers in their completed state at the maximum production capacity of the Muscle Shoals plants and would make every effort to man ufacture them at minimum cost to the farmers, using every known for mula and working his chemists mean while to discover improved methods.
 Mir. Mayo took issue several times with committee members who called attention to the section of the offer regarding fertilizer manufacture, say ing there was no provision in the of Ter to compel the manufacture of fer- tilizer, but only of some necessary in gradients. Tn each instance, the wit ness declared it was Mir Ford's in tention to execute the contract, Tn the event Congress accepted it, in good faith and that included the pro- dEetion of fertilizers.
 Take It Or Leave It
 At one point MT. Mayo said the Detroit manufacturer had been in- vited by the government to make the offer and Congress could take 1t or leave it at it's face value" This an nouncement followed a heated ex- aIn haf 10 tuT a nd resentative Miller republican. Wash ington, regarding the financial obli- gations the government would as- sume under the agreement. The Washington member insisted that the financial burden of the country would exceed by several millions that as- sumed by MT. Ford while Mir. Mayo exhibited estimated expenditures Mir Ford would make which totaled more than sS00o. 900 in excess of Mir. Mil ler's figures. The coloquy ended with out an agreement between the two,
 Chairman Kahn announced at the conclusion of the hearing today that W. Worthington, another of MT Ford's advisors in the Muscle Shoals transaction, would be asked to testify tomorrow. Milton Whitney, soil physicist and chief of the bureau of soils of the agriculture department, also was requested to appear at to- morrow's sessions.
 To Continue Next Week
 As the hearings progressed. Mir. Kahn said it appeared that the com mi ttee would not be able to conclude its investigations this week and prob ably the meetings would be continued over another week. He had hoped to terminate the hearings and begin executive consideration of the Ford offer with the committee next week.
 Another event scheduled for to- morrow was the hearing to be held at the war department by Secretary Weeks of the offer of Frederick w. Engstrum of Wilmington, N. C., for Muscle Shoals. It was considered probable that Secretary Weeks would submit that proposal to Congress be- fore the Senate and House commit tees had disposed. of the Ford offer
 The Senate agriculture committee took it's frs taction today on the Ford It agreed to begin hearings Thursday with Major General Beach chief of army engineers. and mem bers of a delegation from Tennessee including Governor Taylor, who are waiting to testify before the House committee.