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WEDNESDAY, APRIL 16, 1924
UNITED STATES SENATE,
Washington, D. C. The committee met, pursuant to call, at 10 o'clock a. m., in room 326, Senate Office Building, Senator George W. Norris presiding.
Present: Senators Norris (chairman), McNary, Capper, Keyes, Gooding, Ladd, Norbeck, McKinley, Kendrick, Harrison, Heflin, Ralston, and Johnson.
The CHAIRMAN. The committee will come to order. We are to take up this morning the various Muscle Shoals propositions. I will ask the reporter to have the bills printed in the record at this point.
(The bills under consideration are here printed in full, as follows:)
[S. 139, Sixty-eighth Congress, first session) 1 BILL To authorize and direct the Secretary of War, for national defense in time of war and for the production of fertilizers and other useful products in time of peace, to sell to Henry Ford, or a corporation to be incorporated by him, Nitrate Plant Numbered 1, at Sheffield, Alabama; Nitrate Plant Numbered 2. at Muscle Shoals, Alabama; Waco Quarry, near Russellville. Alabama; steam power plant to be located and constructed at or near Lock and Dam Numbered 17 on the Black Warrior River, Alabama, with right of way and transmission line to Nitrate Plant Numbered 2. Muscle Shoals. Alabama; and to lease to Henry Ford, or a corporation to be incorporated by him, Dam Numbered 2 and Dam Numbered 3 (as designated in House Document 1262, Sixty-fourth Congress, first session), including power stations when constructed as provided herein, and for other purposes
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That in order to accept the proposal of Henry Ford dated the 31st day of May, 1922, the Secretary of War is hereby authorized and directed , for and in behalf of the United States of America, to execute any and all proper assignments, contracts, leases, deeds, transfers, and conveyances necessary to effectuate the acceptance of said offer, except such parts of said offer as relate to the Gorgas plant and transmission line (as found in section 12 and in subsection (d) of section 11 of the proposal of Henry Ford dated May 31, 1922), as follows:
SECTION 1. For the purpose of carrying out the terms of this agreement, Henry Ford will form a corporation (hereinafter referred to as the company) with a capital stock of $10,000,000, or more, of which at least $10,000,000 shall be paid in in cash, to be controlled by Henry Ford, which company will immediately enter into and execute all necessary or appropriate instruments of contract to effectuate this agreement.
SEC. 2. The company shall complete for the United States, subject to the approval of the Chief of Engineers, United States Army, Dam No. 2, its locks, power house and all necessary equipment, all in accordance with the plans and specifications prepared, or to be prepared or approved by the Chief of Engineers, Cnited States Army, and progressively install the hydroelectric equipment in said power house adequate for generating approximately six hundred thousand horsepower, all the work aforesaid to be performed as speedily as possible at actual cost and without profit to the company. It is understood that the necessary lands and flowage rights, including lands for railway and terminal connections, have been or will be acquired by the United States.
SEC. 3. The company will lease from the United States Dam No. 2, its power bouse, and all of its hydroelectric and operating appurtenances, except the locks, together with all lands and buildings owned or to be acquired by the United States connected with or adjacent to either end of the said dam, for a period of