Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-09-07

Washington. Sept. G.-By The A.
P0-After conferences with Presi-
dent Coolidge and Secretary Weeks
here today. Henry Ford announced
that he had taken under advise
ment' request of the war secre-
tary, concurred in by the Chief Ex-
ecutive, to modify his offer for the
purchase and lease of the govern
ments power and nitrate projects
at Muscle Shoals, Alabama.
Secretary Weeks is understood to
have informed Mr.. Ford that the
government would be compelled I'M
der the contract agreement with the
Alabama Power Company to cell the
Gorgas Bower plant on the Warrior
river, to il, although there was some
dispute as to the legal status OF the
agreement. 1t was the war secre-
tary's belief that Mr.. Ford could
eliminate the Gorgas unit from his
offer without sacrificing the end he
has in view relative to the operation
of the Muscle Shoals property.
In the event the Gorgas property
is eliminated from those Mr.. Ford
cSNhio W phitHdoN, IL
the money paid the government by
the Alabama Power Company would
be allowed as credit on the pur-
chase price fixed by the Ford offer.
Throughout the congressional
hearing on the Ford proposal, rep
resentatives of the Detroit manufac-
turer insisted that the Gorgas unit
be included and they steadfastly re-
fused suggestions from members of
the house and senate committees
that it be eliminated.
Mr.. Ford is said to hold the same
opinion today and to still believe
that the property is indispensable to
the success of the plan he has in
mind Tor development of. the shoals
properties. 1t is understood. how
ever, that a final decision on the
proposal made today By President
Coolidge and Secretary Weeks will
be communicated to Washington as
soon as it has been given due con-
sideration in Detroit.
Secretary Weeks issued the fol-
lowing statement:
MIR. Ford and Mr.. Edsel Ford.
together with their engineers, came
TO Washington at the request of the
President for the purpose of discuss
Ing tHG DItStIit SldlAS VI WHAT 40
known as the Gorgas Power Plant
and the transmission line connected
with it. These properties are located
on land Of the Alabama Power Com
pany.
''Mr. Ford was requested 10 come
here to consider this matter as these
properties are included in his offer
to the government, now pending be-
fore congress Mr. Ford is to make
an examination of the existing legal
conditions and will take action in
the early future. Until his coming
today. he did not know of the legal
situation in which these properties
are involved"
The Alabaua Power Company.
acting in accordance with the agree
ment entered into with the govern
ment when the Gorgas plant was
constructed. has served notice that
the War Department must vacate
the property not later than October
IA Presumably Mr.. Ford's answer
to the request to eliminate it as q
part o. his purchase offer will be
made known TO the war secretary
before that date.
Neither President Coolidge nor
Secretary Weeks was willing that
the ALBANIA Power Company should
be allowed TO BUY the GoTIas plant
until Mr.. Ford had been consulted.
TIE power company had formerly
offered %I.GD.0DO for the plan. I'd
il the sale il executed. IL is UNDER
stood that this sum would be deduct
cd from the sJ.ON1O0J which Mr.
Ford offered for the Gorg&s plant
and the nitrate factories.