Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-03-01
DEFENDS WAR DEAL
/ FORSH0ALSPLANT
Counsel of Alabama Power
Company Answers Repre-
+ sentative Oliver.

Herbert Dent. chief counsel for the
Alabama Power Company. and former
member of Congress from Alabama. re-
piled today to arguments made before.
the House military committee yesterday
by Representative Oliver. democrat.
Alabama. lenouncing the contract be-
tween the power company and the War
Department for construction of the War
rior steam plant as power unit OF the
Muscle Shoals, Ala. wartime nitrate
projects.
Attacks Law Points.
Mr.. divers contention that the con-
tract was unjust. unfair and unreason-
able was met by MIR. Dent with con-
Trajectory statements. He said Mr.
Oliver had announced "Some startling
propositions of law" which could not be
supported in law.
The option giving the company ex-
elusive right to purchase the plant
the contract. was subject for the
courts to deal with. Mr.. Dent said,
and Congress had no authority to
bind the court, as Mr.. Oliver had
said. He also informed the commit
tee that the ordnance bureau officials
Lad properly signed the contract and
offered to produce witnesses to show
conclusively" that the Secretary of
War had delegated authority to the
ordnance officers to act as contract
ing officers" for that part of the war
Department.
THE only way in the world for the
government to get possession OF the
Warrior plant would be for Congress
to pass an ACT of condemnation" Mr..
Dent said. then the question would
go to the courts. We would be the
defendants and would protest against
the condemnation of private lands on
the ground that it was not required
for the public needs"
Large Development Promised.
Development of hydro-electric power
sufficient to induStrialiZe territory 500
miles in diameter, with the center based
on Muscle Shoals, Ala, was promised
the House military committee yesterday
by Thomas W. Martin. president Of the
Alabama Power Company. in the event
Congress accepts the offer of that com
pany for purchase and development of
the COVE rnment-owned steam and water
power projects at the SHOALS.
Thorough study has been made of
power markets within a radius of 400
miles of Muscle Shoals. Mr.. Martin said.
and applications for energy already flied
with the power company convinced him
there was need for developing Muscle
Shoals and distributing the power
throughout that section of the country.
His company was prepared to serve the
public, functioning as a public utility
regulated by federal and state laws, he
added, and deliver power in emergency
cases to greater distance by relay
systems.
THE development of Muscle Shoals.
Mr.. Martin asserted. lis the last oppor-
tunity the public will have in the ter
ritory south and west of there to oh
tain hydro-electric power. Ii Muscle
Shoals is Withdrawn from public serv-
ice. it will not be possible to meet nat
ural markets for power at remote
points, and probably not even Memphis
can be supplied with energy to meet
existing demands"
Question of Public Service.
Representative Greene. republican,
Vermont, contrasted the power COM
pany's proposal with the offer submit
ted by Henry Ford. Under the latter.
Mr.. Greene believed much of the power
created at the shoals would be used
in the manufacture of fertilizer. parts
for automobiles and other commodi-
ties by private concern. The ques-
tion was. he said. whether the Ford
or Alabama offers would best serve
the public policy, adding that the
power company did not make any pro-
vision in its proposal for fertilizer pro-
duetion. 80
While the committee examined Mr..
Martin the Senate agriculture com
mittee met to decide when senators who
had expressed a wish to visit Muscle
Shoals could make the visit. Senator
Norris said about forty-five senators
wanted to make the trip and he feared
the Senate would have to close down
its business for about five days while
the inspection tour was being made.
After lengthy discussion, the COM
mittee authorized Senator Norris, its
chairman, to confer with republican and
democratic leaders and report Later
what time would be best suited for the
trip.
The House committee also heard Rep
resentative Oliver, democrat, Alabama
reply to arguments made by officials of
the Alabama Power Company, who con-
te9ded the government was obliged to
sels exclusively to that concern its in
terests in the Warrior Steam Plant and
accessory units. The contract which
contained the option in favor of the
company. Mr.. Oliver declared. would
not be upheld by any court. and he
advocated that Congress direct the ini-
tiation of condemnation proceedings on
the ground that the contract was 'un-
fair. unjust and unreasonable"