The Birmingham age-herald., 1922-02-10
WAR APARTMENT PLANS OPERATION
 F BID IS REJECTED
General Beach Declares 100- Year Lease Clause in Ford Contract Should Not
 Be Changed
By Associated Press

Washington, February 9.-The ad- visibility of reducing the time clause in Henry Ford's offer for the lease of the Muscle Shoals government owned lands from 100 to 50 years, was questioned indirectly today by Maj. Gen. Lansing H. Beach, chief of army engineers, in testimony before the House military committee. Re- ferring to the general policy of the government not to lease it's proper ty for period exceeding 50 years, General Beach, in his testimony at the second day of the hearings of the committee on the Ford proposal for the lands and plants at Muscle Shoals, said that it is not always ad- visable to apply one general rule to things big and small"
 Secretary Weeks, who was heard by the committee yesterday at it's opening session. declared repeatedly that in his opinion it would be un- wise to permit the lease of public lands or properties 10 private inter ests for so long a period as 1e0 years. General Beach. however said today that 1t was "a question as big and important matter as this, wheth- CT the 50 year rule would not work a hardship. Il was his belief the general continued, that in dispos ing of the properties at Muscle Shoals the paramount consideration should be the effect upon the nations de. fense rather than the manufacture of fertilizer. The country. he said, should not be caught again without an adequate nitrate supply.
 Discusses Disadvantages
 The disadvantages of installing power plants in Alabama and estab- fishing market for their output were dwelt upon at length by the engineer chief. He said It would bs comparatively easy 10 install plant at Niagara Falls, with market close by, but was quite another feat from d standpoint of time to do SD in region like that about Muscle Shoals, with only four cities within reasonable distance.
 The engineer officer was preceded on the witness stand bs Major Gen eral Williams chief of ordnance, who occupied the greater part of the day's sessions. explaining valuations os properties Involved in the Ford offer. He estimated that tho Warrior power plant and transmission line could be salvaged for s3,000,000 or more and declared under examination by com mittee members that figure yas three flfths of all that Mir. Ford had of fered for the nitrate plants and other properties. These, 1t was esti- mated. had a scrap value to the gov ornment of Ss,s12.000 and would be worth $16,272,000 if made partially operative and the remainder sal vaKed.
 The policy of the war depart
 ment, General Williams explained,
 however, was opposed to the
 HcrappfnR of the properties con-
 cerned. He added later in re-
 sponse to questions, that 1t was
 intended to complete the Wilson
 Dam and maintain nitrate plant
 number 2, in the event private
 development failed.
 Chairman Kahn received word to- day that MT. Ford would not appear personally before the committee but would send properly accredited rep resentatives. A telegram from E. G. Idebold, secretary to Mir. Ford. said W. B. Mayo and J. W. worthington. would be delegated to act for the manufacture and it was learned later. they were requested to be present at Mondays sessions. Both are con sidered to be fully advised on every provision of the offer.
 Hearings Requested
 Requests for hearings were re- ceived by the chairman from the Ala bama Power Company and the Air Nitrate corporation and Mir. Kahn said, their representatives would be heard before the investigation was concluded. Both companies hold op-
 Continued on page two.