The Hartford republican. (Hartford, Ky.) 18??-1926, 1922-03-10
LEGAL Turns BLOCK
FORD SHOALS PLANS
Years Of Litigation Need
ed To Clear Title,
Kahn Says.

washington, March chairman
Kahn, of the House Military Com
mittee, today told w. b. Mayo, chief
engineer for Henry Ford, that it
would require years to thresh out le-
! gal entanglements, and it was doubt
full even then that the government
would be able to accept the Detroit
manufacturers proposed contract for
purchase and lease of the nitrate and
power projects at Muscle Shoals.
After the committee adjourned
other committee members said that
the legal barriers to acceptance of the
Ford proposal appeared unacceptable
because Of the contracts held by the
Alabama Power Company and the
Air Nitrate Corporation, which, those
concerns claim, give them exclusive
rights to purchase the Warrior steam
plant and nitrate plant No. 2, re-
spectively. Both units would be de-
livered to Mr.. Ford with free titles
should his proposal be accepted and
could not be freed from the contract
conditions without prolonged litiga-
ton.
Ford Amends Offer.
Discussion of the legal difficulties
developed after Mr.. Mayo and Gray
Silver, Washington representative of
the American Farm Bureau Fedora
ton, had presented three alterations
which they said Mr.. Ford had agreed
to make in his original offer.
The first alteration provided for
fixed capitalization of not less than
$40, 100000 for the company Mr..
Ford would create to operate the en-
terprise. The amendment was sug-
gested by Mr.. Weeks to safeguard the
governments interests against fall
ure of the operating company to car
ry out the contract in good faith for
the 100 years It would be effective.
Another amendment offered was
guarantee to manufacture CONNER
cial fertilizers" rather than nitrates
and "other compounds" while the
third proposed to give authority to
the company's directing board to reg
ulate delivery Of the fertilizers direct
from factory to consumer, making it
impossible for intermediary agents to
handle the products and increase the
price to the farmers above the per
cent profit charged by the manufac-
turing company.
These amendments were welcom-
ed by the committee, altho some
members expressed regret that Mr.
Ford had refused to accept fifty
years lease.
Wants Clear Title.
Mr.. Mayo was asked IL Mr.. Ford
would further modify his offer, ELI
minating provisions requiring the
government to give him clear titles
to the Warrior steam plant and nj
trate plant No. and whether Mr..
Ford would agree to adjust the le-
gal disputes over the rights claimed
by the Ala bama Power Company and
the Air Nitrates Corporation defray-
ing the litigation expenses as well.
Mr.. Mayo replied that the legal
situation was the governments bust
ness and Mr.. Ford would not be
willing to pay the costs. He also in
sisted that the Warrior plant was es-
sential to Mr.. Ford's plans for
Muscle Shoals development.
Mr.. Kahn said attorneys for the
power company and the nitrate cor
poration advised him they would in
sist that the government discharge
the obligations it had assumed when
contracts for the construction of the
two units were executed with War
Department officials and options Civ
en- their clients for exclusive pur-
chase of the two plants in the event
the government ever decided to sell
them.
Will Demand Rights.
Under their separate warnings
that they would refuse to submit to
the disposition of the properties to
Mr.. Ford and would battle for their
rights from the lowest to the high
est courts. MIR. Kahn said he was un-
able to see how the government could
enter into the agreement proposed
by Mr., Ford to the extent of deliver
ing the plants to him for immediate