The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1922-02-03
FORD'S PROPOSAL
SENT TO CONGRESS
Secretary Weeks Submits
Muscle Shoals Papers
ASKS ACTION BE TAKEN
Suggests Governments Interest
Safeouarded In Case Of
Lease
ASSOCIATED Press Dispatch.l

w ~. ", cSb1uoiJ
Henry Ford's proposal for the govern
ment's projects at Muscle Shoals,
Alabama, was sui united today to con-
gress by Secretary Weeks, for such
action as congress may deem appro-
pirate" The only suggestions contain
ed in the letter of transmission related
to specific clauses in the contract and
the desirability of amendments which
would, in the event the proposal be
accepted by congress, further safe
guard the governments interests.
Otherwise, the secretary OF war
carefully avoids reference to congress
sional action involving the ultimate
acceptance or rejection of the offer as
submitted.
In the event Mr.. Ford's proposal is
accepted, Secretary Weeks declared,
"the government must make new APP
preparations amounting to between
SAC. 10000 and $50, 000, 900, of which
Mr.. Ford vii have the benefit for ap-
proximately one hundred years ct four
per cent. 81
Favors csmplesIen Dam No.
ia the even the PIisr r. relette<
fltH 2e 2ffk0I-E E<.<H as IS 8H1E t<{kt
gafion as wei as th& pos e: $
the government would Maff.zil. t|lI *
penditure."
If this were done, he continues,
the government may itself undertake
to sell the product to the best advan
tage. In such case the amount of the
governments present proposed invest
ment would be very materially reduc-
ed, because dam No. 3. costing from
$1S,000,000 to $25,000,00O would not be
necessary to make the full installation
of power plant on the Wilson dam un-
til the market required such nistalla-
ton.
Saving in Partial Installation
This partial installation" the Sec
rotary explains, would effect saving
of present investment in at least the
sum of 100000 leaving, according to
the chief engineers estimate, not to
exceed $22,000,000 to be invested by
the government at this time instead of
SAC, 900, 900 to $50,000,000." II.
The secretary explains his action in
sending the offer to congress by declar
ing he is without authority in law to
accept Mr.. Fords offer, or dispose of
the property as whole, either by sale
or by lease" and that 1T is peculiarly
the province of congress to weigh the
considerations which will pass TO the
respective parties to the proposed ar
1angement"
Tne secretary also suggested a mod
lhcat1on by congress of the proposal so
that In the event the operating com
pany. to be created failed to carry out
performance of the contract, some pen
atty would be imposed for such fail
ure. Referring to clause in the con-
tract submitted, the secretary adds
that 1t might be contended that the Ian
guage used lis SUSCEPTIBLE of a con-
structlon to the effect that Mr.. Ford
is personally bound only to see that
MS company enters into the contracts
required to carry out the terms of the
proposal and this point should be clear
ed up so that there can be no cues
ton as TO its proper construction"
Suggest Cut in Length Lease
secretary Weeks outlined to con-
gress the voluminous offer by Mr.. Ford
ana suggested that the contract be
limited to fifty instead of one hundred
years.
An appended statement by Major
Heneral Williams, chief of ordnance.
summarizing the Ford offer from the
standpoint of his department, SAYS it
mas the very important advantage of
materially assisting in the develop
menu OF nitrogen preparedness and has
the disadvantages of confiieting wifi
contractual obligations with American
cyanam;d company and the Alabama
rover company and of making a net
return to the government of less than
So'ooo,OOO for properties which have
$16,000,000." soiie