The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-03-11
PLAN TO KILL
MUSCLE SHOALS
WILL SUCCEED
Chairman Kohn O f
the House Military
Committee Asserts
That Legal Difficult
ties Prevent Accept
ance Of Ford's Bid

Washington, March Char
man Kahn Of the house military
committee today told w. Z. Mayo.
chief Of engineers for Henry Ford.
that it would require years to
th-esh out existing legal cntanSle-
ments and it WAS doubtful even
then that the government would be
able to accept the Detroit manu-
facturer's proposed contract for
purchase and lease Of the nitrate
and power projects at Muscle
Shoals.
After the committee adjourned
other committee members said the
legal barriers to acceptance of the
Ford proposal appeared incscap-
able because Of the contracts held
by the Alabama Power company
and the Air Nitrate corporation
which. those concerns claim. give
them exclusive rights TO purchase
the Warrior steam plant and nitrate
plant No =. respectively. Both
units would be delivered to Mr..
Ford with free titles in the event
Of his proposal was accepted and
could not be free from the contract
conditions without prolonged liti-
CATION in the courts.
The discussion Of the legal diff
c3ltics in the committee in consi0-
erinS the Muscle Shoals situation
developed after Mr.. Mayo and
Gray Silver. Washington reprcscn-
iatiNe of the American Farm Bu-
reau federation had presented three
alterations which. they said, Mr..
Ford had agreed 70 make in his
original offer for the shoals pro-
jects. The first alteration provid-
ed for Il fixed capitalization Of not
less than s10.00Q.000 for the COM
papy Mr. Ford would create to
operate the Alabama enterprise.
The amendment was suggested by
Secretary Weeks when he submit
ted the bid TO congress in order to
safeguard the governments inter-
csts against failure of the opcrat-
ing company to carry out the con-
tracts, in good fitith for the 100
Years it would be effective.
Another amendment offered By
Mr.. Mayo was guarantee to man
ufacture commercial fertilizer"
rather than nitratcs and "othcr
compounds while the third pro-
posed to give authority to the COM
pany's directing board to regulate
II y
rect from factory TO consumer.
making it impossible for intermc-
diary agents to handle the products
and increase the price to the
farmers above the S per cent.
profit charged by tthc manufacture
ing company.
These amendments were welcom-
ed hy the committee although
some members expressed regret
that Mr. Ford had refused 10 accept
Il so year lease and had insisted
upon the 100 year clause. Repre-
sentative Green Republican, OF
Vermont declared he WAS strongly
opposed to changing the public
policy limiting the issuance Of
! leases on public properties TO 30
years and said it would be unwise
to make an exception to it for Mr..
Ford.
Chairman Kahn and Representa-
tive Miller Republican, of Wash
ington asked Mr. Mayo if Mr. Ford
would further modify his offer.
eliminating the provisions rcquir-
ing the government TO give him
clear titles to the Warrior steam
plant and nitrate plant No. ,. and
whether Mr.. Ford would agree him
self to adjust the legal disputes over
the rights claimed by the Alabama
Power company and the Air Nj
rratcS corporation, defraying the
| litigation expenses as well.
Mr.. Mayo replied in each in
stance that the legal situation was
the governments business and Mr.
,, Ford would not be willing to pay
! the costs Of court trials. He also
insisted that the Warrior plant WAS
essential 20 the plans for Muscle
Shoals development tint Mr.. Ford
had in mind.
Mr.. Kahn said attorneys for the
power company and the nitrate cor
poration bad advised him they
would insist that the government
discharge the obligations ii had as
sumed when contracts for the con-
st-uction of the two units We're exc
cutcd with war department OIL
Gals and options given their cIi:ntS
for exclusive purchase OF the swo
plants IN the event the govern
nlcnt ever decided 10 sell them, un-
der their separate warnings that
. they would refuse 70 submit 10 the
disposition OF the properties to Nh.
Ford and would battle for thcif
rights from the lowest 20 he hi3ll-
est courts. Mr. Kahn said he WAS
unable to see how tic govern
mcnt could enter into the a:rr..-
! mont proposed by Nh Ford TO the
extent Of delivering the plant> to
him for immediate Development ~
! for future operation i the courts
upheld the power co',;pany nmd
nitrate corporation in tic Jilai &C.
cision
Mr.. Mayo revealed th!t II was
Mr.. Ford's intention to b gin work