Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-03-09
u. S. WILL TURN DOWN
FORD,S SHOALS OFFER,
COMMITTEEMAN BELIEVE
Government Officials Say,
Legal EntangIements Con-
stitute Barrier to Accepts
ance of Proposal

WASHINGTON, March S.-Chair.
man Kahn, Of the house military
committee today told w. B. Mayo,
chief Of engineers for Henry Ford,
that it would require years to thresh
out existing legal entanglements and
it was doubtful even then that the
government would be able to ac.
cept the Detroit manufacturers pros
posed contract for purchase and
lease Of the nitrate and power prof
ects at Muscle Shoals, Ala.
After the committee adjourned
other committee members said the
legal barriers to acceptance of the
Ford proposal appeared unacceptable
because of the contracts held by the
Alabama Power company and the
Air Nitrates corporation which,
those concerns claim, gave them ex-
elusive rights to purchase Warrior
plant and nitrate plant number two.
respectively. Both units would be
delivered to Mr.. Ford with free titles
in the event his proposal was ac-
copied and could not be freed from
the contract conditions without prr-
longed litigation in the courts.
The discussion of the legal diff.
culties the committee faced in con.
sidering the Muscle Shoals situation
developed after Mr.. Mayo and Gray
Silver, Washington representative OF
the American Farm Bureau fedora
ton, had presented three altera-
tions which, they said, Mr.. Ford had
agreed to make in his original offer
for the shoals projects.
The first alteration provided for
a fixed capitalization of not less than
$10,000,000 for the company Mr..
Ford would create to operate the
Alabama power enterprise. The
amendment was suggested by Secre-
tary Weeks when he submitted the
bid to congress in order to safe.
guard the governments interests
against failure OF the operating com,
pany to carry out the contract in
good faith for the 100 years it would
be effective. ~
Another amendment offered by
Mr.. Mayo was guarantee to manu-
facture Commercial Fertilizers
rather than nitrates ard "other
,compoundo'' while the third proposed
to give authority to the company's
directing board to regulate the de.
livery of fertilizers direct from fac
tory to consumer, making it impos-
sible for intermediary agents to
handle the proucts and increase the
price to the farmers above the 8
per cent profit charged by the
manufacturing company.
These amendments We're welcomed
by the committee, although some
members expressed regret that Mr..
Ford had refused to accept a 50-year
lease and had insisted upon the 100.
year clause. Representative Greene.
Republican, Vermont, declared he
was strongly opposed to changing
the public policy limiting the is
suance of leases on public properties
to fifty years and said it would be
unwise to make an exception to it
for Mr.. Ford.
Chairman Kahn and Represent
tative Miller, Republican, Washing
ton, both asked Mr.. Mayo if Mr..
Ford would further modify his offer,
eliminating the provisions requiring
the government to give him clear
titles to tn, Warrior steam plant
and nitrate plant number two and
whether Mr.. Ford would agree him
self to adjust the legal disputes over
the rights claimed by the Alabama
Power company and the Air Nitrates
corporation, defraying the litigation
expenses as well.
, Mr.. Mayo replied in each instance
that the legal situation was the gov
ernment's business and Mr.. Ford
would not be willing to pay the (
costs Of court trials. He also in.
sisted that the Warrior plant was
essential to the plants for Muscle
Shoals development that Mr.. Ford
had in mind.
WASHINGTON. March s.-South-
ern members of congress, headed by
the Alabama delegation, appeared
in a body before the house military
committee today and, through Rep
resentatives Oliver, Bankhead and
Almon, all of Alabama, appealed for
the prompt acceptance OF the Henry
Ford offer for purchase and lease
of the Muscle Shoals government
owned properties.
Memorials were presented by Rep
resentative Oliver in an endeavor to
show that the people of Tennessee
Alabama, Arkansas and Texas were
united in support of Mr.. Ford's
offer and equally as sclidly opposed
to the offer Of the Alabama Power
company.
The power company was repre-
sented as a "foreign-owned 4nonop-
oily" by Representative Oliver, who
read memorial signed by Alabama
citizens declaring it would be 4
travesty on legislation eff the ma
tons greatest water power should
be handed over to this monopoly"
Mr.. Oliver read a long memorial
addressed to the president and con-
gress and adopted by a mass meet
ing held at Montgomery Ala, which
declared, ait would be the quinteS-
sence of legislative folly for the gov
eminent to turn over the only pow
er capable of successfully operating
the nitrate plant to a corporation
owned and controlled by foreign
ers."