Arizona republican., 1922-05-28
HOUSE military COMMITTEE.
OFFERS COUNTER PROPOSAL.
ID MUSCLE SHOALS BIDDERS
None of the Offers Forwarded to Congress By
Secretary Weeks Found Acceptable; Com
n,ittee Members Confident Ford Will Ac-
cepf Plan Worked Out Despite Declaration
TRepublican A. P. Leased Wlre1


WASHINGTON, May 27.-Bidders
competing for development by prl-
vate enterprise of the governments
sfo6. .00O,O00 war initiated projects at
Muscle Shoals, Alabama, We're given
their answers today by the house
military committee in the form of
counter proposal framed by the COM
nlittee men. None Of the offers SUD-
mitted by the bidders and forwarded
10 congress by Secretary Weeks Tor
final decision was found acceptapie.
That made by Henry Ford came
closest to winning the award IN that
it was made the basis upon when
the committee based its reply.
The committee acted in way, IL
was explained, which will leave its
decision subject to acceptance by any
person or interest willing to meet It's
terms and which will permit, at the
same time, to support Its counter
proposal before the house when the
schedule of Muscle Shoals IS acted
upon in that body.
No time was lost by the bidders in
calling for their answers. L. B. Mayo,
chief engineer for Mr.. Ford. was the
first to receive a copy of the COM
mittee's plans. He, representatives
of the Alabama Power company
Frederick Engstrum and Charles
Parsons, makers of the other bids,
were asked to advise the committee
early next week whether they would
accept the proposal Mr.. Mayo said
he would confer with Mr.. Ford in
Detroit before giving an answer.
Some committee members We're
represented as being confident that
the plan worked out by the commit
tee would be accepted by Mr.. Ford
despite the elimination of the Cor
gas, Alabama, steam plant from the
properties to be disposed of with
Muscle Shoals. Others, however.
apparently lacked the confidence
{ their colleagues evinced in this re-
gard and called attention to the re-
peated declarations of Mr.. Mayo and
other witnesses for Mr.. Ford that
Mr.. Ford's offer had to be accepted
'sas a whole and not in part.
Care was exercised by the COM
mitteemen to keep the details OF their
plan secret until the bidders had re-
ceived it including Mr.. Ford in De-
troit. 1t was understood. however,
that the plan was in effect the Ford
modified offer and differed only in
the language added by the commit
tee. replacing in many paragraphs
that which was struck out in order
to insert committee amendments.
In brief the committee alterations
were represented as being chiefly
!. important with respect to the Ford
offer in that they eliminated the
Gorgas plant, required paid up cash
capital OF $4,000, 600 or more for the
operating company to be created for
developing the shoals, made COM
pulsory the yearly production OF fin
ished commercial fertilizers on the
basis of 10000 tons of fixed nitrogen,
and specified the manner of appoint
ment lof the directing board of seven
members whose duty would be TO
examine the conapanys books and
prevent the sale OF fertilizers at
profits exceeding eight per cent of
the cost of production.
The provision of the Ford proposal
fixing 100 years as the lease period
for the Wilson dam, and other pro-
jects not purchased outright by the
Detroit manufacturer. remained un-
changed in the committee draft. it
was understood, as well as the pro-
visions relating to the financial
phases of the proposed transaction