The Birmingham age-herald., 1924-01-24


 dition of readiness for immediate oper- ation by the government for the manu- facture of materials needed in the pro- duction of explosives, the war depart ment to have the right to take over the plant in five days notice in case of emergency,
 Rental $50 900 A Year
 Rental is fixed at $I5O,O00 a year to begin when the hydroelectric, power generating equipment at dam No. is put into commercial operation. The leasing company would pay for power furnished it $15 per horse power a year.
 In submitting the offer the Union Carbide company said it had wide ex- perience in nitrogen manufacture and was convinced that if permitted to take over equipment at Muscle Shoals it could by utilizing several practical processes available for the production of fixed nitrogen" furnish it to the public at less than the present or prospective market prices of Chile ni- trate or ammonium sulphate.
 Thus, the company declared, material aid would be given to agriculture through the production of great amounts of fertilizer at low cost.
 As step toward reducing costs, it was decared, the government might find it advisable to furnish power for fixa- tion of nitrogen without charge and to acquire certain patent tights and li- censes necessary to production so that royalties and fees would not figure in production costs. Should such a pol icy be adopted, it was added, it might be desirable for the government to re- tain ownership of nitrate plant No. 2. reserving 100000 electric horse power for the Union Carbide company.
 10O,000TOn Capacity
 The company said that if the lease were negotiated it would be able to upwards of 100000 tons of fertilizing material having a nitro- gen content of 20 per cent annually. It also offered to conduct extensive research in an effort to cheapen pro- duction and improve processes. Pro- vision was made in the offer for royalty of 5 cents a ton on all stone removed from Waco quarry.
 The military committee held a ses- sion this afternoon to consider the new bid. During the morning it heard of southern power com panies who are seeking to lease Muscle Shoals for power development.
 The offer submitted by the New York company is separate and distinct from one which will be put in within day or so for fertilizer production by group working in conjunction with the southern power companies.
 If permitted to share in development of power at Muscle Shoals. Mir. Edgar said his company would build trans- mission lines to Nashville. western ter minus of it's present system, to Hales Bar, near Chattanooga, and to Mem phis.
 Extension of the power company's bid was urged by E. A. Tillery, vice president and general manager of the Carolina Power and Light company, and the Yadkin River Power company, both of Raleigh, N. C., who said his company would be able to get power for its consumers from Muscle Shoals in this way.
 Such an arrangement would work for the development of industry in North Carolina and would be of bene- fit to all of the northeast.
 Hearings Postponed
 The committee postponed further hearings unta Friday when it was learned that representatives of the Union Carbide company could not ap- pear at tOday's session. Other wit nesses of the southern pOwer-companies also were absent and will be heard at the next meeting.
 Decision was reached by the com mittee to remain in session all day Fri day in an effort if possible to close the hearings early next week. Represen- tative Hull. republican,, Iowa, asked if Mir. Ford would be summoned and when told by Chairman Kahn. Cali fornia, that Mir. Ford was standing by his old offer, he said: MT. Ford has continually refused to appear. I think we should ask him to be present. There are several questions l would like clear ed up, and I would like to ask them to none other than Mir. Ford himself"
 Following the session Representative Hull said he would press his point Fri