Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-01-12
OF FORD
OFFER |SEXPECTED

rotary of War Weeks and Mr.. Ford,
it was learned today from sources in
close touch with the negotiations.
The offer, which calls for even
tual payments of approximately
$3.50, 100000 to the government, will
then be sent to congress, since an
appropriation to complete the Wilson
dam is necessary before the project
can be turned over to the Detroit
manufacturer.
All the details of the proposition
have been virtually agreed to in ne
gotiations between Mr.. Weeks and
army engineers ana Ford engineers
and representatives it was learned.
The meeting between Messrs. Ford
and Weeks here within few days,
probably Friday, will be mainly to
confirm formally the acceptance of
7the offer. =
The Ford offer will be accepted vir-
tually as made, although Mr.. Ford
may agree to some slight modifica-
| tions.
All through the long discussions re.
| garding the disposition of the great
war project, the, Ford offer has stood
in a class by itself.
Secretary of War Weeks has adj
mitted that no other offer comes near
it, because no other bidder offers to
take over the entire project and
make peace time products, with a
provision that the government can
take it over instantly in time, of war.
AS exclusively revealed, Mr.. Weeks
! in a conference here with Mr.. Ford
| at the formers bedside more than
g month ago, told the Detroit manu-
| facturer his offer would be accepted,
| but added that he desired negotia-
| items between the engineers of the
! army and Mr.. Ford over the cost
Of completing the dam, which, under
| the offer, must be done by the gov.
ernment. Mr.. Weeks was i'll at the
| time.
The secretary suggested that Mr..
Ford and Thomas A. Edison make
an estimate, as to the cost of com.
pleting the Wilson dam. An esti-
mate OF $2S,000,00O was made, and
on this cost, Mr.. Ford agreed to pay
six per cent interest.
This estimate has been under dis
cussion during the last few weeks,
with army engineers claiming the
cost will be greater than the Ford
Edison estimate. while Mr.. Ford's
representatives have been pointing
out that even if it were greater. the
rate of interest Mr.. Ford is offering
would make a rate of return OF four
per cent on the army engineers es-
innate.
Passage Of the Muscle Shoals APP
pr. priation through congress may
cause a long fight. Hope for prompt
action lies in the power of the farm
bloc. which is expected to back the
Ford offer, because of it's desire 10
provide the farmers will cheaper
fertilizer.
Frederick EngstHum, Of Whining
ton, N. c., offered today to lease
the Muscle Shoals, Ala, nitrate and
water power projects for fifty years
and to manufacture commercial fer
filters. The offer was contained in
a letter from Mr.. Engstrum, de-
livered to Secretary Weeks by for
mer Senator Marion Butler, of North
Carolina, in which the writer de-
clared his proposal included manu-
facture of fertilizers and presented
comprehensive scheme in line with
| that offered by Henry Ford.
Explaining details of his offer
submitted recently by Mr.. Butler,
the writer said his proposal covered
more than the construction work
necessary for the completion Of the
project, and he was ready in the
event the government itself desired
to complete the works, to lease it
| afterwards and proceed with the
manufacture Of fertilizers.
Mr.. Engstrum's letter was made
public by Mr.. Butler. 1t follows:
"A press dispatch of yesterday
ksays that the views of war depart
ment officials is that my proposal
to complete, lease and operate the
Muscle Shoals project is not in COM
petition with Mr.. Ford's proposal,
because it is chiefly a construction
bid, instead of proposal to lease and
operate the property to manufac-
ture nitrate for the benefit of the
public. 49,"
Il respectfully submit that this
is not just or proper statement Of
my proposal.
| My proposal is to lease and oper-
ate the Muscle Shoals power to make
commercial nitrates, and nothing but
nltrates for public benefit. In order
to make nitrates from the air and
sell the same at a price less than
the present price of Chilean nitrates
it is proposed to sell excess power
and to revote part of the proceeds
derived there from to cover the diff
ference between the present cost of
making such nitrateS and the price
at which the same shall be sold, the
selling price to be fixed by the Sec
rotary of agriculture. This will make
the plant self-sustaining from the
beginning as nitrate. producer.
1T is obvious that the amount of
nltrates which can be produced at
Muscle Shoals will depend upon the
amount of excess electric power de-
Veloped and the sale price fixed for
the nitrateS. Besides the present nj
trates plant at Muscle Shoals was
not designed to make commercial nj
trates, but nitrates for explosives;
therefore, 1t is necessary to rede-
sign this plant in order to produce
nitrates for fertilizer. To meet these
limitations my proposal provides for
redesigning the present nitrate plant
and for the establishment Of a re-
search plant at Muscle Shoals to
develop. as early as possible, better
methods for making such nitrates at
less cost, and also for the develop
ment of additional power, if the same
shallb ecome necessary. So far as
I know, my proposal is the only one
which provides for doing these
things: certainly Mr.. Ford's proposal
does not.
THE above is the substance and
purpos of my proposal to lease and
operate Muscle Shoals for a term OF
so years. The construction part of
the proposal is incidental. But the
construction part of the power plant
| must he cnrnnlated hN some one he.