Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-02-25
SENATE COMMITTEE
WILL MAKE VISIT
To MUSCLE SHOALS
Head of Alabama Power
Company Says 1t Is Not
" Now Dominated by British
Capital

OdpllQl
+ WASHINGTON, Feb. "a. - The
senate agricultural committee was
authorized, under resolution adopt
ed today by the senate, to go to
Muscle Shoals, Ala, and investigate
the power projects there which the
government seeks to dispose Of to
private interests.
Chairman Norris said the commit
tee, probably the entire roster,
would make the trip to Muscle
Shoals soon, probably within the
next ten days or two weeks.
The resolution by Chairman Nor
ris, Of the agricultural committee,
was amended in the senate to in
crease the cost Of the inquiry from
$1,000 to $4,000 and to authorize
any senator, in addition to agricui-
tural committee members. to go to
Muscle Shoals with the committee.
Chairman Calder, of the senate
expenditures committee, reported
the resolution favorably with the
81 900 expense limit as proposed by
Senator Norris. Senator Trammell,
Democrat, Florida, objected to the
$1,000 limit, stating that he doubted
whether it would be sufficient. Sen.
ator Harrison, Democrat, Missls-
sippi, suggested that any senator,
other than agricultural committee
members, should be authorized to
make the trip to Muscle Shoals.
Senator Underwood, Of Alabama,
Democratic leader. also urged the
increase in the expense limit. He
stated that frequently congress
spent as much as $1,000 for an in
vestigation of mere theories" and
said that the visit of the senatorial!
delegation to Muscle Shoals would
be of a great aid in reaching a con-
clusion as to the disposition of the
governments property.
Thomas w. Martin, president of
the Alabama Power company, testi-
flying today before the house mill
tary committees hearing on the pro-
posal to lease the government nj
trate and power project at Muscle
Shoals, Ala, to private interests, de-
MED that the power company was
controlled by British capital.
Mr.. Martins statement was made
preliminary to an explanation be-
fore the committee of the option for
purchase of the Warrior steam plant
and accessories which the company
war department it would exercise in
the event Henry Ford's offer for
purchase and lease of the nitrate
and power projects was accepted by
congress.
Mr.. Martin explained that the mi.
tial plans of organization by the
company was to develop it with
British capital. but when the war in
Europe came in 1914 the company
found itself facing large indebted
ness, with it's securities held abroad
and a new financial plan was made.
New Program i'm Effect
"The English plan was subordi-
mated by an entirely new program,
he said. "Since 1914-15, the COM
pany has Lcen entirely financed by
Americans. Securities have been re-
turned to this country and almost
a conf lete reversal from the condi'
tions which obtained prior to 1914
has taken place. Only So or 40 per
cent of the securities now are held
abroad"
Invitations were received today by
the committee from the mayors of
Nashville, Memphis, Chattanooga
and Knoxville, Tenn, extending the
hospitality of the four cities to
members in the event they decided
to visit Muscle Shoals.
Referring to the option, Mr.. Mar
tin said the government demand
ed that an agreement be written
into the contract which it negotiated
with the company for construction
of the Warrior plant, so that the
contracting party would purchase
that property ION fair value basis"
after it's war use was ended.
The power company head read the
agreement" which resulted from
the governments demand for pro-
tection." It follows in part:
cat any time subsequent to three
years after the termination of war,
the United States Shall have the op-
ton to sell to the contractor and
the contractor SHALL upon written
demand of the United States, buy all
its rights, title, and interest in and
to the Warrior extension and. War
rior substation with all rights ap-
purtenant thereto at the value fixed
by arbitration as hereinafter provid-
ed"
The contract containing this
agreement" Mr.. Martin asserted.
was dated December l, 1917, but was
not executed until November 8, 1918,
the day of the false armistice re-
port.
Between December, 1917, and No
vember of the following year, Mr..
Martin showed that the company
proceeded with construction of the
plant and sub station, protected only
by an oral understanding with the
war department, and that the COM
pany financed the project by using
| its private funds, without any finan-
cial consideration from the govern
| ment.