Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-09-27
GORGAS SALE DOES
NOT KILL FORD BID,
COOLIDGE DECLARES

WASHlNGION, sept. Z0.-Sdle OIL
the Gorgas steam power plant to
the Alabama Power company for
approximately three and a half mil
lion dollars is held by President
Coolidge to have affected in no way
the offer of Henry Ford to buy and
lease the Muscle Shoals properties
In Alabama.
The president, in discussing with
visitors today the sale of the Cor
gas plant as made yesterday by the
war department, was siad to feel
that the remaining property built
by the government in Alabama dur
ing the war was quite as attractive
a proposition for Mr.. Ford's pur-
poses now as before the Gorgas
plant passed from government own
ership.
Considered Separate
The Gorgas plant, in the opinion
of the president and also Of admin
istration officials generally, really
has no connection with the Muscle
Shoals project, inasmuch as it is
located some 70 miles from the
Muscle Shoals waterpower site and
also is a steam power plant which
is not vitality essential to Mr.. Ford s
purposes.
In emphasizing this view a high
administration official said the Cor
gas plant bore about the same re-
fation to Muscle Shoals as the stem
of an apple does after the fruit has
been taken from the tree. The plant,
it was explained, undoubtedly would
lie useful to mr.. Ford during de-
velopment of waterpower at Muscle
Shoals, but it could be duplicated
by Mr.. Ford on properties covered
by his offer for probably a million
dollars.
The government, in disposing of
the Gorgas plant, it was explained
further, had no option in view Of the
attorney generals recent ruling
against attempting to stay on the
power company;s property beyond
the expiration of the lease.
When Mr.. Ford was summoned to
Washington some time ago and in
formed that the department of JUS
tice and the judge advocate general
valid, he, announced that he woul]
take under Amusement Secretary
Weeks suggestion that he submit
a revised bid excluding the Gorgas
plant. He then was given 10 under.
would propose to congress thai
the proceeds or its sale be credited
against his proposed initial payment
of $5,000,000.
Although Mr.. Ford's engineers
entered request for another exten
sion of time on disposal of the
Gorgas plant, which the power co1a
pany declined to grant, no revised
bid has been received. During com
r..ittee hearings on hts offer. Mr.
gress that he would insist on ii
clusion of the Gorgas plant as 3
condition Of purchase.
Weeks Statement
Secretary Weeks statement, IS
sued Immediately after the papers
had been signed, follows: ..
"The secretary of war announced
today that the United States had
sold to the Alabama Power company
the Warrior extension and appur.
tenances at Gorgas and power
transmission line from the plant to
Sheffield, Ala, for $3,472, 487.25
cash and the deed had been deliv.
cred.
Under the contract of the Ala.
bama Power company, the govern.
ment acquired the right to use tenn
porarily the land of that company
upon which the government erected
an addition to one of the company S
steam plants and a transmission
line from that plant to Sheffield at
total wartime cost of about $4,750-
600. Under the terms of the con.
tract, the company some time ago
served notice on the government to
either remove the property from
the land of the company or to sell
to the company at fair, appraised
value. The secretary was advised
by both the judge Acknowledgement
of the army and the attorney gen
eral that the former secretary OF
war was authorized to contract for
the temporary use of the lands oil
the company, to place government
buildings and machinery thereon
and to stipulate for their removal
and restoration of the lands to the
owners in their former conditions
as provided in the contract.
This advice was given notwith
standing opinion had been previous
ly rendered holding certain other
provisions of the contract invalid
70 W no ve
meant the loss by the government
of substantially all of the invest
ments, hence the determination tC
sell.
THE secretary Of war had the
advice of experts from the ordnance
department and the federal power
commission in arriving. at a fail
value of the properties. Before max
ing the sale the secretary Of wal
advised Mr.. Henry Ford OF the sit
uation and of the opinion Of the at
torney general and asked Mr.. Fore
for any suggestions he or his at
torneys might offer; but none wa:
made. Under the circumstances
no other course was open to the
government but to sell to the Ala
bama Power company, and it ha!
thereby succeeded in successfully
salvaging its interests in the Cor
gas property"
Sale Branded Illegal
The sale yesterday by the govern
ment to the Alabama Power com
pany of the Gorgas steam pcwe
plant, transmission lines and othe
accessories located upon its propert!
was contaminated Representa- tiVi