New-York tribune., 1922-02-14
Plan toPledge
Ford to Make
Fertilizer Off
Automobile Man Refuses to
Modify Muscle Shoals
Offer in Any Respect
Except for Ciarifcation
Snas on Warrior Plant
Ordnance Officials Insist
Proposed Sale Violates
Power Company Contract

Norsc Military Committee 70 exact 1
.lcdgo tor the manufacture OF fer
tjl;zers curing the l00-year life OF the
oropossd contract by Henry Ford 70,
purchase and lease OF the governmcnt's
properties at Muscle Shoals, Ala.
fall to-day. W B. Mayo appearing
before the committee as the personal
representative Of Mr.. Ford. declared
he Detroit manufacturer was not will
ir0 10 mcdify his offer in any Of It's
Visiting provisions unless it was tc
clarity language only and not to alter
the plan itself.
Committeeman also failed in their at
tempts during examination OF Major
J. H. Burns, chief Of the ammunition
division of the army's ordnance de-
partrent, to adjust differences Of
opinion between ordnance officers and
those in the Judge Advocate General S
Department with regard TO the War
rior power plant Major Burns insisted
throughout an extended Interrogation
tha. +he government was obligated to
sell that property 10 the Alabama
Power Company or remove it from
their grounds. He declared it could
not be sold to Mr.. Ford as part of
the Muscle Shoals project unless the
government violated contract with
ebc company. Previously officers of
the Judge Advocate Generals Depart
ment had SAID the contract was non
enforceable.
Warrior Plant Essential
Statements by Major Burns that
The Warrior plant was not essential to
tbe Ford plan were countered later
by Mr.. Mayo. who declared the power
dsveloped there WAS needed and Mr..
Ford would demand a clear title to that
unit. as speciiicd in the offer. This sit
nation was regarded by several COM
mittee members as interposing a diff
,nl. obstruction 30 be overcome before
tbev could return the Ford plan to the
House for disposition by that body,
while others declared they could see
no solution at all unless the contract
with the company was violated.
While the committee worked on the
Ford offer at the Capitol. Secretary
Weeks continued study at the War De
partment Of the other offers he has
On Muscle Shoals. He notified Fred
er.ck Engstrum, of Wilmington, N. c.,
that he would give him hearing on
Wednesday, after which he would sub
NIT his offer to Congress. The Secre-
,ary has said that the Engstrum pro
posal, as amended, appeared "to be bet
tor than IL was as originally sub
mitted
Nlr. Mayo tod the committee Mr..
ord intended manufacture fertil-
lzers in their finished forms and would
Ingredients. He also declared that not
than Mt rO,,fC ko
elsc;ed and that it was Mr.. Ford's in
iention to deliver the completed prod
aet direct 10 the farmer, preventing
purchase by agencies which might fix
Tie price before it reached the farm
eFs hands.
No Intention TO Sell Power
Questions by several committeeman
deteloped that it was Mr.. Ford's inten-
Ton 10 use all the power developed by
The water projects and other plants
iOr hi own purposes at Muscle Shoals.
i was not the intention, Mr. Mayo
aid, TO establish selling com
rany to compete with commercial com
pancs engaged in that enterprise.
part Of the power created, t was
explained, would be consumed in the
manufacture of Automobile parts from
raw materlals.' This statement by the
witness revealed for the first time that
10 was the Intention to operate the
Nabama plants in connection with Mr..
lords automobile business and was
construed ss Implying the production
o. light metals. possibly Of aluminium
which would cutter into the construc-
ton o. automobiles at the Detroit fac
tory.
Chairman Kahn asked whether Mr..
ford, in the event his offer was &C
cepted, would agree to fixed capitall-
1atlou for tic company he would Gre
a'e to operate the Muscle Shoals work
VI don't thiaA he has determined"
WY; Msye said "but the capital Will be
sufficient"
Mr. Msvo said the manufacturer had
n9' determred whether the company
Nvud operate under Mr.. tord's name
Vt some other designation.
Won't Operate at loss
asked by tie chairman II MIR. Ford
ouid Ma'.uiacturc fertilizer at a
m's' NJ Mavo testified that at would
necessarily follow that, as q natural
,lnsequencc q company would not con
"nle to work at d loss He added that
'Ae event tertllzer production proved
,.'plontaoie, changes would be made
r,,I Iaae me business pay and that Mr.
@ apla would Go whatever he could to
p'o.uuoe cheap fertilizers
1ae W.tnes7 ssd Mr. Ford did not
;ris.: ~pect to make Il profit which would
,.aNly h'm in paying more than i
-. Ve,'t interest on the money to be
ssnl ~ thc government IN conplet
~, ,,.e on struetion work on the dams.
n If tord IL entering into this thing
~ good faith" Mr.. Mayo SAID. az
v:,erhs Repre- tentative Greene. cf
I.m9At There is no reason to be
t;., nc "l.i quit because cf competi-
'en he Will meet"
.5sss. ne log1 eaer is scheduled for con-
Aes;.,ion Ass,ation tomorrow by the Senate
s.lheIiture s,,h.liture Committee. That body
e,,YS0aaiy y, Ssaiy vili decide upon program |
IA TIsatlHgs e. lis own. Nanv requests
eeIr.s re hsard already have been re-
s.tsd tdu oy the committee from inter
ssr,a s persons and commercial cor
:. ,ss,l fleia'ed to power DEVELOPMENTS,
r~s.t as agricultural organizations. (
Nill ill-lh.Ner eAamulation of Mr.. Mayo
mtteo conducted by the House com