The Birmingham age-herald., 1922-02-03
SECRETARY OF WAR
 NEITHER |NDORSES NOR ASSA|LS OFFER
Points Out Advantage of En- pIoying Large Amount of Labor During Present
 Unemployment Period
By Associated Press

dSnlngtOn, feDfuary Z.-Henry Ford's proposal for Muscle Shoals was submitted to Congress today by Secretary Weeks without specific recommendation as to its acceptance or rejection. The Scretary's only suggestions related to the desira- bility of amendments to further safe guard the governments interests in the event the proposal was accepted by Congress. In the event the offer were rejected the Secretary said it was his opinion that Wilson Dam should be completed by the govern ment and that the power require ments for commercial purposes, the benefits to navigation, as well as the possible needs of the government. would warrant the expenditure.
 At this time" Secretary Weeks added, when there Is a large amount of unemployment, it is not without Importance to consider the advant- age to the nation of the large amount or labor required in undertaking this development I, therefore, urge that Congress give early consideration 10 this matter not only to settle a con troverted question. but to furnish employment on a large scale"
 Th9 Secretary explained his action in sending the offer to Congress bv declaring he was without authority to dispose of the property by sale or lease.
 In the event the offer is accepted, :, he said, "the government must make new appropriations amounting to S40,000,000 to $50,000. 900 of which MT, Ford will have the benefit for approximately 100 years at per cent"
 Williams Statement Included
 A statement by Major General Will Hams, chief of ordnance, summarizinx the Ford offer from the standnoinf or his department, was appended to Secretary Weeks letter. The offer. General Williams said, had the very important advantage of materially assisting in the development of nitro gen preparedness and had the disad- vantage of conflicting with the con tractual obligations with the Amer ican Cynaimid company and the Ala bama Power company, and of making net return to the government of less than s5,o0o, 900 for properties which have an estimated salvage value of some $16,O00, ,O00."
 Another statement. from General Beach, chief of army engineers. pointed out four indirect benefits the government would receive in the event the Ford offer were accepted They follow:
 "The maintenance of a nitrate plant in readiness for war emer- gency.
 "The production, in the interest of the public welfare, of large amounts of fertilizer at cost not exceeding the reasonable cost of production providing that the production of ,i trate adopted to fertilizing purposes is found to be practicable
 The elimination of the cost of maintaining and operating the pres- ent imperfect facilities for naviga- tion at Muscle Shoals, amounting to from $S5,000 to sS5,000 per annum.
 "The advantage to interstate com merce and navigation of the far su- perior facilities to navigation that will be secured through the con struction o1 the dam and locks"
 
 tions in connection with the Ford proposal were these:
 secretary's Suggestions
 T suggest that the cost of acqulr- ing the lands and flowage rights necessary for dam No. 3 should be included in the sum upon which MT. Ford is to be paid 4 per cent in rent The omission of the cost of these lands from this computation is more serious than would be the omission of the provi sions for a sinking fund for the annual interest at per cent on the cost of such lands and rights if used for that purpose, would amortize a sum much larger than that provided for in paragraph 10 of MT. Ford's proposal.
 In case the proposed company sells any or all power developed at either or both of these dams it should be required to do so under terms and conditions imposed by the federal power commission or the pub lie service commission of Alabama in the manner required of other power companies.
 While paragraphs =. of the present proposal provide that Mir Ford's company is to pay to the United States annually the sum of s35,oo0 on Dam No ? and s20,000 on dam No. 3 for repairs, maintenance and operations of the dams, gates and locks, Congress may well / consider whether it would be more desirable to have Mir. Ford maintain the prop erty and omit these payments.
 Would Complete Dam
 If MT. Ford's proposal be not ac- cepted it is my opinion that dam No. (Wilson dam), should be completed by the government and that the power requirements for commercial purposes, the benefits to navigation $ well as the possible needs of the government, would warrant this ex- penditure. If this were done the gov ernment may itself undertake to sell the product to the best advantage. In such case the amouAt of the govern ment's present proposed investment would be very materially reduced, be- cause dam No 3, costing from S1S,- 100000 to s25,000,000 would not be built At dam No. ? 1t would not be necessary to make the full installa- tion of power plant until the market requires such installation. This par tial installation would effect saw ing of present investment in at least the sum of $3,000, 900. leaving, accord in gto the chief engineers estimate, not to exceed s22.000,000 to be in- vested by the government at this time instead of s4o.Oo0.0o0 to s5o,00o,- 900. The analysis made by the chief of engineers (hereto attached as ex- hibit "B"), shows a loss in excess of s15,000,000 due to delay in the re- ceipt of returns from rentals. Such loss would hardly be justified in case the investment is to ultimately bear but per cent interest if there were not other considerations which are beneficial to both the government and the people of that vicinity"
 Summarizes offer
 "In brief" he said, MT. Ford offers