The Union daily times. [volume] (Union, S.C.) 1918-current, 1922-02-23
THREE CHANGES
In FORD'S OFFER

Washington, Feb. 22.-Three al
terations in the proposal made by
Henry Ford for lease and purchase
of the governments nitrate and pow
er projects at Muscle Shoals have
been agreed to by the Detroit manu-
facturer. They are:
l. To write into the proposed con
tract a definite guarantee to produce
fertilizers in their finished form at a
given annual minimum tonnage.
2. To capitalize the operating ca
pacity which is to be created for the
purpose Of supplying the Muscle
Shoals operations.
8. To revise the language of the
so-callcd farmers clause in order to
insure the delivery of fertilizers from
the producing plant to the consumer
at profit not exceeding per cent
based on the cost Of manufacture.
Mr.. Ford's approval of these modi-
ications was announced today by w.
Il. Mayo, chief engineer for the Ford
company, upon his return from De-
troit where he went last week to
confer with the Detroit manufacturer.
Formal announcement to the house
military committee members who are
Investigating the offer in congress
will be made by Mr.. Mayo probably
on Friday.
While the alterations were regard
ed by some committee members as
greatly improving the form of the
contract and adding to its value as
they view it from the governments
standpoint other members said it
would have been more acceptable if
Mr.. Ford had also agreed to a re-
duction in the lease clause from 100
to so years as suggested by Secre
tary Weeks when he testified before
the committee.
On this point, however, Mr.. Mayo
explained that Mr.. Ford still held
that the so year period was too short
time to justify the financial in
vestment under the proposed con-
tract for development Of the Muscle
Shoals waterpower facilities and nj
trate plants in the section of the
country where they are situated.
The agreement to manufacture fin
ished fertilizers instead of COM
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to assure the production OF that
commodity which several committee.
men had declared was not an obi,
cation under the existing language
og the offer. Mr.. Mayo today die
not reveal the amount of productions
guaranteed.
The fixed capital proposed, it was
explained, made the operating COM
pany liable to the government fol
the life of the contract and set up a
certain sum which the governments
might recover as forfeit in the
event of failure to execute the con-
tract by the operating committee.
The third alteration was intended
to make it impossible for any com
pany to buy the fertilizers and re
/ tail 10 farmers at PRICES eSCcc'ilIS
the manufacturing cost plus pei
cent. Committeeman had declared
their fear, while Mr.. Mayo was being
/ examined last week, that the farm
ers would be "feld up" by pur-
chasing concern and had insisted tha'
| a clause be inserted in the contrac,
which would provide for distribution
of fertilizers from the source to the
consumer direct. Mr.. Mayo explain
ed today that the Ford automobile
agencies throughout the country
would be utilized for distributing
purposes but said the exact plan fo,
fertilizer distribution had not beer
decided.
The committee held only one meet
ing today on account of the holiday
Gray Silver, Washington represen-
tative Of the American Farm Bu.
reau federation, testified that the ] >,
500 900 farmer members of that or
ganization had "unrcservedly indorS
ed" the Ford offer and had full con
fdence that they would get cheaper
fertilizers and other commoditie:
which he would manufacture a
Muscle Shoals.