Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1921-09-02


No. for 100 years, with indefinite
renewals, provided the government
VIII complete them and install ma
chinery to produce $4,000 horse
power. Mr. Ford offers TO pay 6 per
cent on the s2S,000,000 which he es-
Inmates will be necessary to complete
this work, or q OF 10 per cent on
s4S, 100000, Mr.. Ford's own estimate
of the whole government investment
IN dams, locks and power houses.
Even if we add all other annual pay
ments (the so-called amortization
payments, and payments for the re-
pair, maintenance and operation of
dams, gates and locks), the total
would be equivalent to interest at the
rate of only 3-6 of 10 per cent. Mr..
Ford offers also to give the govern
ment 800 horse power to operate the
locks.
Please note that for the water
power itself Mr.. Ford would pay moth
ing, and that he would be free from
al taxes on the property. Other les
sees of water power rights from the
government not only bear the total
cost of building their own dams and
power houses and pay taxes on them,
but they also pay for the water power
in addition. The Ford offer is like
Offering a man So of 10 per cent on
the cost Of his factory as rent, and
then asking him to throw in a coal
mine to supply fuel for the engines
for nothing.
There is no allowance for deprecia-
ton, and the government would be-
yond question have to pay the cost
of injury to the dams or locks from
floods or other causes. Moreover
there is nothing in the offer to indi-
cate that the government, in order to
protect its own property, would not
have to bear the expense of replacing
enormously costly machinery when
it had been worn out in Mr.. Ford's
service.
The second part of the Ford offer
is to buy nitrate plant No. I, which
cost the government in round num-
bers $13,OO0,00O. nitrate plant No. @,
which cost the government in round
$70,000,0OO and other prop
erty which brings the total cost to
$85,000.000, and to pay 100000
for 1t all. The property for which
this offer is made includes steam ma
chinery to produce 100000 horse
power, which alone is worth far more
than Mr.. Ford's offer for the whole.
In addition, the government Is to buy
from the Alabama Power company
the land upon whic hcertain of the
foregoing structures were built, and
to turn that over to Mr.. Ford also.
In return for the lease, for the
purchased purchased property. and
for the waterpower without charge,
Mr.. Ford offers in addition to the pay
ments mentioned above, to do three
principal things:
First, Ito MAINTAIN nitrate plant
No. 2 ready to be operated
in time Of war for the production Of
explosives" and in the event Of war
I. turn It over to the government for
that purpose.
Second, ito operate nitrate plant
No. 2 to approximate present capacity
in the production Of nitrogen and
ether fertilizer compbunds.'' and in
this business to lint his net profit
from the manufacture and sale Of fer
tinser to 8 per cent. 80 e4
Third, the offer as written suggests
producing. but contains no direct pro
/, osal to produce, fertilizer for the
seneflt OF American farmers. That
.ouId. OF course. be correcte. In the
final contract, for have no doubt
that Mr.. Ford desires to make fertil.
ixer at I total net profit Of 8 PER cent.
sNItI6t0 PAM 4NVs - hO"ONOAS ~ AA~s
adapted to making fertilizer, but only
cyanimid, one of several materials
used for the production Of fertilizer.
and not one of the best at that.
The fact is that the Ford offer is
not mainly fertilizer proposition. 1t
is seven parts water power to one
part fertilizer, even II the fertilizer
part should work out. For, II nitrate
plant No. 2 were to be permanently
employed in the manufacture Of fer
tilizer it would consume but 100000
horse power out of the $4,000 in
stallation. This is the heart Of the
whole matter.
As a water power p roposition the
Ford offer is in every important point
contrary to the conservation water
power policy first inaugurated during
the Roosevelt administration, which
after Is years Of struggle was finally
enacted into law last year.
This policy provides that all water
mower leases shall be limited to so