The New York herald., 1922-02-03
WEEKS SENDS FORD
OFFER TO CONGRESS
Fight Over Muscle Shoals
is Looked For at Com
mittee Hearing.
RIVALS TO BE HEARD
Secretary Points Out Sew
eral Disadvantages to
the Government.
NO OBJECTION TO RENTAL
Suggests Contract for Fifty
Instead of 100 Years Is in
Line With U. S. Policy.
Special Dispatch to THE New York HERALD.
New York Herald Bureau
Washington. ID. c.. Feb. g (

specia, Dispatch to THE New York HERALD.
New York Herald Bureau.
Washington, ID. c.. Feb. 2.
Henry Fords offer to lease from the
Government the power and nitrate
plants at Muscle Shoals. Ala, is now
in the hands of the House Committee
on Military Affairs, which according
to it's chairman. Representative Julius
Kahn (Cal.), probably will meet on
Saturday to give immediate considera-
tion to Mr.. Ford's offer.
The Ford proposal was sent to Con-
gress to-day by Secretary Of War
Weeks without recommendations con-
cerning it's acceptance or rejection.
The Secretary, however, did offer sug-
gestions as to notifications which he
feels should be made in the Ford offer
in the event Congress should decide
TO accept 1t.
The indications are that a lively fight
will mark consideration by the Military
Affairs Committee. 1t is expected that
not only will Mr.. Ford's scheme be at
'dShCN W thOSS OPPosSa ~ ~ cNS oASS
that other bidders on the Muscle Shoals
projects will be permitted to present
their cases before the committee.
In transmitting his report. Secretary
Weeks filed data in the Muscle Shoals
project compiled by various branches Of
the army. including a ruling by the
Judge Advocate General that the Gov
ernment is fully authorized by law to
lAA, cAlI ". I..~<~
was presented to meet the claim of vari-
Gus interests. including the Alabama
Power Company, that the War Depart
ment exceeded it's authority in attempt
ing to dispose of the property.
In suggesting notifications of the
Ford proposal Secretary Weeks upheld
by Major-Gen. Beach of the Engineers
Corps, points out that it is disadvan-
tageous to the Government on several
points. First. because Mr.. Ford offers
$5,000,000 for a quarry and nitrate
steam plants which could be sold for
$16,000,000; second, his plan for amorti-
cation payment on the two dams is too
low; third, 1t is felt he should pay the
cost OF obtaining Of fiowage and property
rights for Dam No. 3. No fault is found
with his offer for annual rental and his
offer to turn the plant over to the Gov
ernment In the event of war.
The Ford offer, in brief. is as follows:
The Ford Offer.
I. Fords company to complete Dam
No. and construct proposed Dam No.
3. the Government to reimburse Ford
for money spent on the two dams. The
Government estimates the cost of this
work at $50,000,000. Ford figures It
will cost less, but does not guaran-
tee it.
2. Six years after Dam No. is COM
pleted, with 100000 horsepower de-
veloped, and three years after Dam No.
is completed. with $4,000 horsepower
developed. Ford will pay to the Gov
ernment the sum of per cent of the
cost of completing each of the dams.
g. For the first six years after Dam
No. 2 Is completed Ford will pay to
the Government a rental of 100000 a
year, and for the first three years after
Dam No. is completed a rental for
that dam of $160.000 a year.
4. Repairs and maintenance of these
dams after completion is to be cared for
by the Government but for this pur-
pose Ford will pay to the Government
$4,000 a year for Dam No 2, and
100000 a year for Dam No. 3.
3. For the completion of the two dams
Ford offers to pay the Government
S23.373 annually. If invested at 4 per
cent for the period of the lease. which
Is 100 years. this sum would amount to
$4S.000.000, or close to the $4,000, 600
estimated by the War Department to be
the cost of this work.
6. Ford stipulates that the Govern
ment sell him the Gorgas Warrior steam
plant. the Waco quarry and Dams No.
/ and No. 2. For these Ford offers 10
pay total of $5,000,0OO in Ave annual
installments of S1,000,000 each, within
ten deferred payments at 10 per cent.
z. Nitrate plant No. 2 Ford proposes
to operate for the manufacture of nitro
gen and fertilizer compounds, these
products to be sold at profit of not
more than per cent. of the total cost
of operation of the plant.
5. Ford offers to keep the plants in
readiness to turn over to the Govern
ment for production of explosive COM
pounds in the event of war.
Weeks Calls IL BARGAIN,
Secretary Weeks shows in his COM
ment accompanying the Ford bid that
the Detroit automobile wizard will, be
getting a bargain in the event his offer
is accepted. To begin with. according
20 Mr.. Weeks. the Government must
make appropriations of between s40.-
100000 and $4,000. 900 20 complete the
udhiS. TOTu VIII Get tnc advantage of
the use OF this money for 100 years AT
only per cent. interest. The fact that
dam No. already has cost the Gov
crnment si6.000.0O0 Is not taken into
account In the Ford offer. which means
that this sum will be a total loss TO the
Government.
The two nitrate plants. the Gorgas
Warrior steam plant and the Waco
quarry. cost the Government sS5, 900, O0O.
and bring ss.S12.000 as scrap. or cal,
be sold otherwise for s16.272. 900. the
Secretary points out. and yet for these
Ford offers only $4,000. 900. Under his
offer Ford is bound 60 operate nitrate
plant No. I. but there Is nothing to pre-
vent his selling everything else. with the
exception OF the dams
Major-Gen. c. c. Williams. Chief of
Ordinances, recommends that ule differ
cnce between Ford's offer of $4,000, 900
on the various plants and their value
or s16.000000 should be charged to the
cost of pitroopu praparedpaaa which 4io