The Birmingham age-herald., 1923-07-29

ing fund amounted to the total of Nthe governments investment, the government was bound to give title to the property, or it's share of the property to the company.
 Determined By Arbitration.
 It was decreed in the contract that the value of the governments share of the property should be determined by arbitration, and that if on the date of transfer, the sinking fund was less than the governments investment, the company should pay the govern ment the difference between the fund and the original investment; and that if the fund was in excess of the governments original investment, the amount of the excess should be de- livered to the company.
 Section of Article XXII of the contract provides that should the company on demand of the govern ment fail to buy the governments share of the property, sale might be made to another subject to the con- dition that said properties shall not be operated and that they shall be removed within six months after the sale has been consummated."
 Section of the same article pro- vides that if within ten years from the date of the contract, the govern ment's share Is not sold, or if the government for S65 consecutive days shall fa1 to buy energy from the company, the government shall upon six months notice remove its prop erty from the land of the company.
 There is a distinct punch in Section 2. It follows: If the United States shall for a period of two years fail to take energy from the Warrior eH- tension, the Uited States shall, upon six months written notice, remove
 T appurtenances owned by 1t as are located on lands or rights of way owned by the company; provided, that upon receipt of said notice the United States may require the com pany to buy all of Its rights, title, and interest in and to said transmits sion lines and appurtenances at their fair value as fixed by arbitration" In Company. Hands.
 After digesting that section, pause. It Is known that more than two years have elapsed since the United States bought energy of the company. That fact was brought out in the hearings before the military committee. If therefore, the company should de- mand of the government that It re- move its property from the land of the company, the government would be compelled to do so, or sell that property to the company, provided the government abided by the letter of the contract.
 In that event, 1t would be inn possible for the government to ac- cept the offer of Henry Ford which demands possession of the Gorgas steam plant. According to repeated statements by Mir. Ford through his representatives In Washington, he would for no consideration amend his offer In such wise that the govern ment might accept 1t without trans mittlng to him its properties situa- ted on the property of the company at GorgaS.
 The wonder is whether or not the company, like Shylock. will demand Its pound of flesh Should 1t do so, the Secretary of War would of neces- sty suffer great embarra sment. There would follow, unquestionably, endless litigation of doubtful issue. And should victory finally perch on the banner of the company, and the gov ernment be forced either to remove it's property or sell it to the com- pany. it is possible of belief that in consequent unpopularity the compa- ny would be taxed with a cost far in excess of the total value of the Gorgas holdings
 Eleven Months Delay.
 The Gorgas contract, according to Ofrlclal eN1uenCe, was ualeu DeceHl- Der l. 1917. but was not executed until November g. 1918. By the date of the execution, all of the construc- tion demanded by the government ot the company had been completed.
 The development of this fact created great interest on the part of the members of the committee. Rep resentative w. Frank James of Mich igan asked MT. Martin, president of the company: why was there a delay of Il months In having the contract signed%
 T was living in Alabama and these gentlemen (meaning government agents) were living in Washington replied Mir. Martin. Captain Noble died in~the midst of the work. There is no particular reason l could give It was one of the many contracts not completed"
 The following colloquy ensued:
 MT. James-Who drew up this con- tract?
 MT. Martini have explained that Col. Williams was the officer rep resenting the government.
 MT. James-Did he draw it up or did you draw it up?
 Mr. NIartin-You know if is oueS-