The Birmingham age-herald., 1924-01-23

government exercised option in the power companies offer, the committee was told, would approximate $25,500,- 900 while the saving on the proposed expenditure for new steam plant would be about $3,500,000.
 No Fund For Research
 Mir. Yates pointed out that ths--Eord bid made no mention of a fund to be devoted to research and it's acceptance would obligate the government to ac- quire a site for a new steam plant and right-of-way about 100 miles in length for transmission lines to Muscle Shoals at. "a cost Of about $3,5O0,O00. < !.
 At the outset of today's hearing the committee turned its attention to the offer for Muscle Shoals submitted. by group of southern power companies and heard F.. A. Yates, vice president and general manager of the Alabama Power company, one of the companies making the bid. Mir. Yates read and explained terms of the offer.
 Representative Mckenzie. republi7 can, Illinois, who has introduced bill to authorize acceptance of Henry Fords bid, said the offer of the south ern companies was perhaps the most liberal one yet presented, but he de- clared it was "a water power propo- sition, pure and simple
 You do not obligate yourself in any way" Mir, Mckenzie said to Mir. Yates, ito manufacture fertilizer"
 "No," replied the witness, adding that within a day or 90 "a definite, well-rounded" offer would be made to the government providing for fertilizer manufacture.
 Mir. Yates did not disclose who would tender the new offer, but said the companies seeking power rights would be interested" in the proposition.
 Accepts Modification Representative Hull, republican, Iowa, who initiated correspondence which resulted in the offer of the pow CT companies, objected to four sections of the bid which he said would obligate the government to subsequently, spend huge sums of moRey on Dam No. 5.
 Mir. Yates said he and his associates would gladly consider modification of the sections.
 MT. Yates was asked by Representa- tive Speaks, Ohio, republican mem Der of the committee, whether his of fer might not result in huge promo tiOn scheme, and the witness said the company would be subject to regula- tion by the Federal Waterpower com mission.
 Committee discussion veered back to the fertilizer question when Represen- tative Wainwright, republican, New York, former secretary of war, asked whether the companies desiring power rights would be- willing to guarantee that fertilizer would be made.
 Il am not prepared to say" said Mir. Yates, adding that he thought the committee should study the fertilizer offer when it comes in and then deter mine whether ittwas satisfactory. MT. Wainwright pointed out that Mir. Ford had virtually guaranteed that he would manufacture fertilizer at Muscle Shoals.
 Sees No Merit To 1t
 One of the democratic members of the committee, Representative Quinn of Mississippi. declared the new offer was destitute" of points of merit, particularly with reference to fertilizer manufacture. He declined to question [ MT. Yates.
 Representative McSwain, democrat, South Carolina, asked whether the southern companies had been "negoti- ating with the fertilizer trust?" "No," replied Mir. Yates, and then explained he did not know what was meant by fertilizer trust"
 The question, he added, has been discussed with men familiar with fer tilizer manufacture.
 Why do you delay in submitting an offer for fertilizer production?" asked Representative Hill, democrat, Alabama.
 Our men are not ready" replied the witness. They are on their way to Washington and should be here to submit their proposition tomorrow or l Thursday at the latest
 Representative Mckenzie declared that unless the southern power com panies were prepared at once to in- clude in one offer n guarantee of fer tilizer production and maintenance of nitrate plants at Muscle Shoals he thought the committee would be jus tified in deciding without delay wheth- CT the bid should h" rejected or made the subject ,f hearings.
 \ Mir. Yates asserter the fertilized of fer would be explicit" and certain to find favor with committee members. "