The Birmingham age-herald., 1922-02-07

plant at Gorgas, at present under le
 MT. Martin was joined here by s. E
 of Montgomery, who for years was i,
 military affairs and during the war
 Mir Dent will represent the Alabam The Alabama Power company has a contract with the government, under the terms of which the government is bound to sell 10 the company, the Gorgas plant whenever the govern
 ment is determined to dispose of it.
 Before sending the Ford contract to Congress. the Secretary of War refer red the contract between the gov
 ernment and the Alabama company
 to the judge advocate general, and one of the assistants of the judge advocate general, Major John Smith, advised the secretary that the con tract was not binding on the govern ment. He made the point that as Congress had not given the Secretary Of War the right to dispose of the Muscle Shoals property, tho secre- tary was without authority to give an option on any integral part of the property. Major Smith finally de- ciared that irrespective of the law in- volved, Congress. if 1t desired, could ignore the contract
 Declares Contract Valid
 But Mir Martin and Mir. Dent today declared that the contract cannot be ignored. Mir. Martin says the power company Is right legally and in the second place, requires the Gorgas plant in it's serving of the people of the state with power. Mir. Dent, In statement to this bureau declares the law Is clear and unassailabls
 As previously pointed out in this correspondence. the Air Nitrate cor poration has an option on nitrate plant No. 2, of an almost Identical nature with that held by the Alabama Power company on the Gorgas plant. While the assistant judge advocate general says the options are not bind- ing, the Air Nitrate corporation. be- fore entering into It's contract, had advice to the contrary from it's coun- sel, who at that time, was Charles k. Hughes, now Secretary of State. Mir. Dent, in statement tonight, said:
 T am familiar with the contnact
 between 5sneA Roverng1aaaft and the Ar
 Nitrate corporation The case of the
 Alabama Power company is much
 stronger in many respects"
 i Not Fishting Ford
 MT. Martin made 1t plain that he was not fighting the efforts of Ford to secure Muscle Shoals. He declared that he had made no move during all
 the time the premlinaries were under way.
 He contends that Gorgax is not ne- cessary to Muscle Shoals, and that Ford on other occasions, had stated that he was not anxious to acquire any steam power plants And yet Ford, in the contract now pending
 before Congress, declared that the contract must be accepted in all pro- visions or not at all. If the govern ment finds that it ia bound to obs serve it's contract with the Alabama Power company, the subsequent ac- ton of Ford is prohlematical. Given Early Hearing
 Representative Julius Kahn of Cal irornia, chairman of the military committee of the House, informed MT. Martin and Mir. Dent today that they would be given a hearing im- mediately after the appearance of the Secretary of War and other officials of the government. Mir. Kahn's state
 pent was in response to a telegram dispatched to him by Mr. Martin be- lore 1tdNlnk N6N K InASIHutn dS this telegram sets out the position of the Alabama Power company it is ot transcendent interest to Alabama. IL follows:
 Press reports state your commit tee will immediately consider legisla- tion affecting rights of Alabama Power company to the government extension of Warrior river steam plant as fixed by our contract with United States executed in November, 1918, but dated December 1, 1917, and that acting judge advocate general has advised that the rights therein given us to purchase this extension and the transmission line connecting it with the nitrate plant are not bind ing on the government. We have performed in good faith our obligs- tions under this contract in full re- liance upon it's validity. We are ad- vised that the rights therein given us by the government to purchase this rroperty are valid and constitute ob- ligations which are legally binding on the government, and that the opinion of the acting judge advocate general to the contrary was based on a misapprehension of the facts and law controlling in the situa- ton.
 The property constitutes portion of our hydro electric system and is actually in use in serving the public of Alabama and adjacent states with electricity and is needed for that purpose.
 "we respectfully assert the full validity and effectiveness of these provisions of our contract, not mere ly to protect our technical legal rights but in the interest of public service and of our patrons. We have not waived and do not waive them. but insist upon our right to con tinue to use the property and to pur- chase it as provided by our con tract with the government, and we respectfully request your committee .continued m Pare rwo