Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1921-10-21

which Henry Ford put in his offer to
thc War Department. No one would
wish TO take the risk of handling the
. proposition over I shorter period of
time. as the history Of water-power
development shows that invariably at
the start there is an excess of power,
and later on this excess is absorbed,
and demands for extra power are put
on the generating stations. All that
takes time. for the development of
factories and industries which will seek
that section because of the cheap pow
er available.
The cost of Dam No. 3, which Ford's
offer demands be built by the goverh-
ment, Is placed at fSS.OOO,OOO. This
figure has aroused n storm of protest
from various sources, the objection be-
ing made that it is too low. 1t is pos
sible to estimate engineering costs
quite closely, as all contractors know,
but even if this $S,0OO,O0O is a couple
of million shy, would it not be better
to spend that much more and get
something for the money?
Just one figure shows the possi-
bi!it!es. In 1919 the United States
paid Chile $S5,OCO.000 for nitrates
Since 1857 we have paid Chile some
sS21183,OO0. Our nitrate demands are
doubling about every ten years, as our
soil gets weaker and weaker. We use
about % pounds per acre in growing
wheat, and get about fifteen bushels
of wheat per acre. Belgium uses
about 24O pounds to the acre and gets
about forty-fve bushels of wheat
When our soil is less rich, fertilizers
must make up the deficit If we wish
TO eat. Should we send our money
outside the country for Chilean ferti-
lizers?
For Nitrate Plant No. 2, which cost
under wartime pressure about s69,OO0,-
coo and which has steam power avail
able rs n reserve to aid water power,
and for Nitrate Plant No. 1 which cost
S13,564. 900 or so (and which is not be-
ing used under the present process),
it is proposed by Mr.. Ford to pay the
government $5,OO0,000 cash. While
this seems like n small sum, it must
be remembered that t:e Old Hickory
power plant, which cost about $780,
OO1, 900 was sold for S3,500,0OO and the
government lost all rights to the plant.
Whereas under the Ford offer, should
war occur the government would be
placed in possession pr completely
equipped and operating plant for turn
irg out explosives. which would elm
mate the large purchase OF that COM
modify.
One has only to consider the OK
,rerclv small Sums re:fizcd from the
sales Of camp sites and other war
stores to appreciate that $5,OOO,OOO il
about the going rGte for property such
as this.
On the other hand, with only So
0OO, 900 tied up rs the capital charge
rgainst the plant proper, the cost or
producing nitrate is lower than it
would be if n greater sum had to be
sareguardcd. Since Ford offers to sell
nitratcs at s per cent. above produc-
ion costs. this means that the farm
or would have the opportunity to buy
fertilizer more chcaply. OF course
the ritrates from the plant rs it now
stands will not he more than drop in
the bucket. for it can produce some
thing like 100000 tons per year, and
the state of Georgia alone uses over
100000 tons. But the plants could
be enlarged as TIE power was devel-
opcG.
In addition the Ford offer contcm-
plates paying the entire costs OF Dams
, and 3, with interest at per cent.
IN the money so that whether Dam
40. 3 costs $S,OIOGOO or not, the en-
,iYc cost would be repaid to the gov
crlmcnt with interest.
In all, over q period of 100 years,
Ford would pay the government $214,-
OfD,DVJ. ~ NIl- t!INA VI NV 'N''''' 49,
would bc going development Of $780,
600 horsepower, and the navigation in
the river for $50 miles would be inn
proved ut once, free OF cost To the
country. There would also be n
charge Of $4,000 or so per year cut
ont which is low paid for the opera
ton Of canal locks. The number Of
canal locks would be cut from nine TO
two, making shipments much faster.
In addition, Mr.. Ford agrees to pay
$50. .0GO each year for repIir& and main
tcnancc on the two dams.
The question of the 100-year lease
seems to disturb many people who
otherwise approve the plan heartily.
Bat 100 years is not too long TO allow
the amortization of the cost OF the
dams. The power is goins to waste
now. and it would take mary years to
b,ild up an Industrial community
large enough to use the entire amount.
That means that millions more will
have 10 Ec spent in additional factor
les. and people who invest would want
10 be sure that they could spread their
amortization charges over enough
time TO make that amount relatively
small in computing the overhead. Also