Evening star., 1922-02-10
QUESTIONS 9[YEAR
LEASING TO FORD
Maj. Gen. Beach Sees Posi-
BILE Justification of 100-Year
Period at Muscle Shoals.

Resuming his testimony on the Ford
oner for outright purchase and lease
for loo. years of the governments
$106.0o0.O0o nitrate and waterpower
projects at Muscle Shoals, Ala, Maj.
Gen. Beach. chief of Army engineers.
reiterated today his opinion expressed
in testimony yesterday afternoon that
conditions prevailing in that section
OF the country might justify the
hundred-year permit and prove the
ffty-year time limit. suggested by
Secretary Weeks. to be inadvisable.
The only power dams that are
located In navigable rivers at the
present time" the general said, were
built beforesthe national waterpower
act was passed and they have no time
limit whatever. Their rights are in
perpetuity."
'In the case of Muscle Shoals" he
continued. "in as large river as
the Tennessee, ! would advise very
careful consideration of the circum-
stances to see if they are not such
as to justify an exception to the rule.
Asked About Option.
Gen. Beach was asked by Repre-
sentative Shield of Kentucky about
the option held by the Air Nitrate
Corporation to purchase the Muscle
Shoals properties under as favorable
terms as are given oIher private con-
Germs and which the company has
notified Secretary Weeks that 1t de-
sires to exercise.
After developing the fact that
James K Duke was connected with
that company, the general read a
letter received by him June 2, 1921,
In which Mr.. Duke. 1t was said. con-
Wilson dam was inadvisable."
Then" interrupted Mr.. Shields,
'it does not seem probable that Mr..
Duke, as an interested party to the
Air Nitrate Corporation, would favor
of Muscle Shoals prop
erty, II the option was exercised by
it,
Representative Garrett of Texas
declared the greatest drawback to
development Of the water power pos
sibilities of the country was the OPP
position expressed by people who
lacked vision"
NO" Gen. Beach said. TT has been
the opposition Of people who think their
interests will be affected"
An announcement by Chairman
Kahn of the House military commit
tee that w. B. Mayo, chief engineer
for Mr.. Ford. would testify Monday
opened the second days investigation
purchase and lease of the nitrate and
power property at Muscle Shoals.
Maj. Gen. Williams, chief Of Army
ordnance, recited in detail the reasons
for construction Of the nitrate plants.
explained the processes of nitrate man
ufacture. and produced figures giving
the cost to the government of the work
accomplished to date.
Calls O6er Inadequate.
The witness described Mr. Ford's
offer Of 100000 for the nitrate
plants as very inadequate"
Referring to the Warrior power
plant and substation, the general de-
clared there was. in his opinion,
moral obligation" on the part of the
government to give the Alabama
Power Company right to purchase
those properties before they were dis
posed of to other private interests.
Gen. Williams was of the opinion
that the Warrior power plant could
be salvaged without affecting the op
Grafton of nitrate plant No. 2, and
that the salvage value would be about
s3.000.060, or three-fifth Of what Mr..
Ford offered for all the plants.
Doubts Cheap Production.
Doubt as to whether fertilizers
could be manufactured cheaply at
Muscle Shoals was repeatedly ex-
pressed by Secretary Weeks as the
first witness at the hearing before
the House military affairs committee
yesterday, when it started investiga-
ton of the Ford contract offer for
purchase and lease of this big war
time plant.
Secretary Weeks expressed the be-
lief that. to better guard the govern
ments s106,000.000 investment al
ready made, amendments should be
incorporated in the offer as drafted.
To alter existing government pol
icies regarding the lease of real
estate or other properties and permit
a 10o-year lease of the waterpower
machinery and dams in Alabama, the
Secretary asserted repeatedly, would
be an unwise act and should not be
permitted. He advocated a reduction
in the time clause of from 100 years
to fifty. in the event Congress should
decide to accept the offer.