The Birmingham age-herald., 1922-05-11
Proposal Will Provide For Semi-GovernmentaI Corpor- ation to Complete and 0per- ate Nitrate Projects
By Associated Press

Washington, May 10.-A semi governmental corporation for com pletion and operation of the govern ment's power and nitrate projects at Muscle Shoals probably will be formally proposed to the Senate agriculture committee tomorrow. It was outlined partially today by James T. Lloyd, Washington, D. C., attorney and former member of Con- gross from Missouri, who announced later that the proposal would be com pleted tonight and prepared for pre- sentation to the committee probably at it's next session.
 J. H. Lowering. a consulting en- gineer of Los Angeles. Calif, MT. Lloyd said, had originated the Idea form of a bill for congressional con- sideration. It was the intention, the witness said. to provide in the bill for cooperation with a directing body Ol ScNtH cPA for each of the war. treasury and az riculture departments to lease the projects for 50 years, complete those yet unfinished stages and at the ter- imitation of the lease period return to ahe government every penny 1t had expended at Muscle Shoals.
 Further Finys Ford,
 Henry Ford's proposed contract for lease and purchase of the shoals project was made the subje te Of further comment today by Chairman Norris, Nebraska, who requested R. F. Bower, local official of the American Farm Bureau Federn ron. to critlcise the senate bill proposing govern ment t-owned and operated corporation for Muscle -ioals development.
 In reply. Mr. Bower said his opin- ion was that the bill could not be passed by the senate or house. In- fuences opposed 10 jr. Fords pro- posed operation at Muscle Shoals, added to those congressman who were against government participation in business enterprise, the witness said. would make the bill referred to by Senator Norris, a dead one before 1t was started through the legislative mills.
 Mir Bower later informed the com mittee that his "only hope" to get Muscle Shoals developed in a helpful way for agriculture, producing cheap CT fertilizer for the farmers and re- newing fertility of the soils. was in the acceptance by congress Of Mir. Fords contract
 silver to Make Report.
 Gray Silver. Washington represen- tative of the federation. offered to have study ma lie of the Norris bill and submit report to he commit : tee at a later date. His offer was ac- l cepted after the Nebraska senator as- serted his belief that the measure would be considered by congress with a view to passing 1t and had again expressed his fear that the corporation Mir. Ford intended to create might pass into the hands of it's opponents at the death of MT. Ford, leaving the farmers without aid. Arguments by officials of the Alabama Power com pany. including Thomas ". Martin, president and Hubert Dent, counsel were heard today and taken under ad : visement by Attorney Daugherty as A preliminary procedure to the prepara tion by him of an opinion regarding the legality of claims made by the power company Of exclusive pur- chase rights of that part of the Gorgas steam plant, power unit connecting with the nitrate factories at Muscle Shoals, which was built during the war. Both Mir. Martin and Dent asserted the contract was binding legal agreement on the war department to sell the properfy to tb A power company in the event 1t was ever selected for sale. and moreover contained solemn and moral ob- iigation upon the government to exc cute in good faith. M
 The attorney generals opinion was requested by Secretary Weeks and Chairman Kahn of the house mi,i- tary committee after Henry Ford In- cluded the Gorgas plant among the properties he would obtain title to under the offer he made for the Muscle Snoais projects