Evening star., 1922-05-28
BIDDERS GET REPLY
ON MUSCLE SHOALS
House Committee Issues
Counter Proposal Based
on Ford Offer.
DETAILS NOT DISCLOSED
Plan May Cut Out Gorgas Plant.
Also Require $4,000, 900 Capt.
tai and 10000 Ton Output. i,
DETAILS NOT DISCLOSED
BY the Associated Press,

a
BY the Associated Press
Bidders competing for development
by private enterprise of the govern
ment's s106,O00. 900 war-initiated
projects at Muscle Shoals. Ala, were
given their answers yesterday by the
House military committee in the form
of counter proposal framed by the
committeeman.
None Of the offers submitted By the
bidders and forwarded TO Congress
by Secretary Weeks for final de-
cisions was found acceptable That
made by Henry Ford came closest 20
winning the award, in that it was
mittee built its reply.
The committee acted in a way II
was explained. which will leave its
decisions subject to acceptance by
any person or interest willing 20
meet its terms, and which VIII per-
nit ii, at the same time, to support
its counter proposal before the House
where the subject Of Muscle Shoals -
acted upon in that body.
Bidders on the Spot.
No time was lost by the bidders in
calling for their answers. w b..
Mayo, chief engineer for Mr.. Ford.
was the first TO receive a copy Of the
committees plans. He, representa-
tives of the Alabama Power Company
Frederick Engstrum and Charles
Parsons. makers Of the other bids.
We're 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, and
left here for that purpose few hours
afterward.
Some committee members were req
resented as being confident that the
plan worked out by the committee
would be accepted by MIR Ford, de-
spite the elimination ot the Gorgas.
Ala. steam plant from the proper
ties to be disposed Of with Muscle
Shoals.
Doubt Ford's Acceptance.
Others. however, apparently lacked
the confidence their colleagues evi-
denced in this regard and called al
tention TO the repeated declarations
of Mr.. Mayo and other witnesses for
Mr. Ford that Mr.. Fords offer had
TO be accepted ''as a whole and not
in part"
Attention also was called to test
mony in which representatives Of Nj.
Ford held the Goreas property nee
employ for developing Muscle Shoals
and would decline to agree to a pro-
posal which did not include the Cor
gas plant among the other units TO
be disposed of with the shoals
projects.
Care was exercised by the cpmmt-
teemen to keep the details of their
plan in secret until the bidders had
received it, including Mr. Ford in
Detroit. 1t was understood. how
ever. that the plan was in effect the
Ford modified offer and differed only
in the language added by the COM
mittee, replacing in many respects
that which was struck out in order
to insert committee amendments.
Several Changes Proposed.
In brief. the committee alterations
were represented as being chiefly i'm
portant with respect to the Ford offer
in that they eliminated the Gorsas
plant. required a paidup cash capt.
tai of 100000 or more for the op-
Grating company to he 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 of the directing board of seven
members whose duty would he to ex-
anime the company's books and pre-
vent the sale of fertilizers at profits
exceeding s per cent of the cost of
production.
The provision Of the Ford pro-
posal fixing 1e0 years as the lease
period for the Wilson dam and other
projects not purchased outright by
the Detroit manufacturer remained
unchanged in the committee draft il
was understood, as well as the pro-
visions relating to the financial
phases of the proposed transaction.
Weeks Against IOO-Year Lease.
In this connection. it was recalled
that Secretary Weeks one recon-
mendation to Congress. made when he
transmitted the Ford offer there. was
in opposition to the 1G0-year Lease
He also testified before the Housd
committee that. in his opinion, it
would be unwise to change the
governments policy of restricting
leases on public lands and properties
to fifty years.
The Secretary is to appear Thurs
day before the Senate agriculture
committee to testify on the prof
posals pending before that body for
consideration and to report To the
Senate with regard to Muscle Shoals
The Ford offer will be discussed at
that meeting and, it is expected. the
Secretary will reiterate his state
ment on 100-year leases.