The Union daily times. [volume] (Union, S.C.) 1918-current, 1922-02-04

Of nineteen thousand eight hundred
and stxtyAsight dollars. ($19,s8a)."
The provision for amortization in
the last proposal is very much more.
favorable to the United States than IL
was in the offer Of July 8, 1921. Should
the dams be constructed at cost Of
not exceed S42, 100000. as estimated
by Mr.. Ford's engineers, there would
be left to apply on the investment Of
the government heretofore made,
whatever the amortization payments
would produce in excess of the $42,-
100000. If the amortization fund
should be invested continuously at 4
per cent there would be at least ST.
100000 to be thus applied, but should
it be invested at a greater rate Of in
terest the amount would be increased
as shownas shown by the table.
The provision for renewal Of the
lease which was contained in the pro-
posal of July 8, 1921. was numbered
IL, and reads as follows:
"At any time prior to the expiration
of said lease period of one hundred
(1OO) years, the company shall have
the right to negotiate with the gov
crnment for a renewal of the leases
for the two above dams, their power
houses, etc"
The effect Of this provision was to
bind the United States to a renewal
of the lease for one hundred uOO)
years on such terms as should be de.
termined to be just by board Of ar.
hitration. Under the new proposal the
renewal clause is contained in para.
graph IL, which reads as follows:
"In order that said company may be
supplied with electric power and tho
farmers with fertilizers after the
termination of the said one hundred
(1OO) year leases, should the United
States elect not to operate said power
plants, but determine to lease or dis
pose of same, the company shall have
the preferred right to negotiate with
the United States for such lease or
purchase and upon such terms as may
then be agreed upon. -
This paragraph does not bind the
United States to a renewal of the
lease and is in no way an attempt to
control the policy of congress beyond
the OBSERVATION-DISCLOSURES period of the
present lease, except to preserve to
Mr.. Ford's company "the preferred
right to negotiate with the United
States for such lease or purchase and
upon such terms as may then be
agreed upon"
There should be some assurance
that the contracts made by the pro-
posed company will be carried out or
some penalty imposed for failure to
perform.
In the event Mr.. Fords proposal is
accepted, the government must make
new appropriations amounting to $4O,-
100000 to $50,O00,O00, of which Mr..
Ford will have the benefit for approx
100 years at per cent. The
company is, of course, bound to keep
Plant No. 2 in condition to
produce explosive which, as matter
of preparedness, IS of great value to
the government, Nevertheless, Mr..
Ford is offering but 5000, 600 for the
title to the two nitrate plants, the
Waco quarry, the Gorgas-Warrior
appurtenances. That you may the
better understand the value Of the
property for which Mr.. Ford is offer
ing this $5,000,00O, am attaching to
this letter, brief statement pre-
pared by the chief of ordance, show
ing the cost and estimated salvage
value of these properties. From the
table contained in this statement It |
will be seen that these properties cost
the United States approximately $685.
100000 and that as scrap they are
estimated to be worth $8,812,O00.
However, the last column of the Ia
BILE in Exhibit "a" indicates that the
chief Of ordnance believes the war de-
partment can dispose of the property
for $16,272,000. Mr.. Ford is bound
by his proposal to operate Nitrate
Plant No. 2, but there is no legal OBJ
stable to prevent his disposing of the
other properties to which he gets title
Should he be able to obtain what the
chief of ordnance estimates that the
government can secure for the various
items, namely, SO ,OOO, 900 for the War
'r'or plants, which have an installa-
tion of 10000 horsepower, and $780,
600 for Nitrate Plant No. 1 and dis
pose of the Warrior Muscle Shoals
transmission line, as transmission
line and not as scrap, for $675.OOO,
and should he obtain $357.OOO for the
Waco quarry, he would have left the
Nitrate Plant No. with it's 10000
horsepower steam plant at cost to
him of less than 100000. The III