The Bridgeport times and evening farmer., 1922-02-02
SEC, WEEKS AVOIDS ACTION ON
 F0RD'S OFFER
(Continued from Page One.)

oeleVe IL would De a better poH- cy,'' the secretary wrote ito limit the contract to a term of 50 years, in- stead of 100, to conform with the established policy of the federal gov ernment, as set out in the water pow CT act.'
 gress, the offer by MT. Ford in this way:
 MT. Ford offers to undertake the completion of dam No. and the construction of dam No. 3, accord ing to the governments plans, for which he shall be reimbursed the ac- tual cost and to lease the dams and power plants at an annual rental equivalent to four per cent of the cost to the government of completing dam No. and constructing dam No. (ex- elusive of the cost of acquiring lands and flowage rights necessary for dam No. 3.)
 The rentals of four per cent. are to commence, respectively, in six years after dam No. has been completed to the point where equipment for 100000 horsepower is installed and ready for service, and three year after the equipment to develop So,0OO horsepower is installed and ready for service at dam No. 8. In the mean time during the six year and three year periods, respectively, he offers 10 pay, upon dam No. 3, an anua1 ren- tai of $20O.000, and on dam No. 5, $160,000.
 His offer places upon the United States the responsibility for repair and maintenance of two dams, other than the power houses, which power houses and electrical equipment he agrees to maintain at his own ex- pense in efficient operating condition. As compensation to the United States for the repair and upkeep of dam No. 2 and locks, he offers to pay the sum of $35,000 annually and of dam No. and locks the sum of $20,000 annually. He also agrees to furnish electricity for operating the locks at the government and in addition he agrees to pay the sum of $23,S73 seD1i-anually for the purpose of build ing up sinking fund to return to the United States at the end of the lease period a sum of money which he ss- inmates if invested at four per cent. will be approximately $4e. 100000.
 'tAs a condition of this offer he asks that the United States sell to him nitrate plants Nos. l and 9, the steam plant. with all appurtenances for the sum of $5,o00,O0O payable $1,- 000,000 down and the balance in an- nua1 installments of S1,000,000 each with five per cent interest on defer red payments
 'tAs a further consideration to the government he agrees to operate nj trate plant No. 2, at the apDroNtmats present annual capacity of its machin- cry and equipment in the produc- ton of nitrogen and other fertilizer compounds throughout the lease per iod and to maintain it in it's present state of readiness or itH equivalent for immediate operation in the man ufacture of materials necessary in time of war for the production of ex- plosives.
 'He further agrees that the fer t1izer produced at nitrate plant No. 9 cess of eight per cent. of the actual cost of production thereof, and to turn over to the United States. nitrate plant No. whenever it shall be re- quired for the national defense.
 He likewise asks for a preference in opportunity to purchase or lease the property at the end of the lease period and for the right for a period not stated, to be supplied with cleo tric power at reasonable rates in an sumption during the previous ten years in case the plant is operated and his company does not purchase or lease it. He also states that his proposal must be accepted as whole and not in part"
 Attention was directed to the cost of the nitrate plants for which MT Ford offered $5,Oo0,00O. MT. Ford is offering but S5,00,000 for the title 10 the two nitrate plants. the Waco quarry, the Gorgas-Warrior steam plant transmission lines and appur- tenauces," says Secretary Weeks, add ing that "these properties cost the United States approximately $S5, ,000,- 900 and that as scrap they are esti- mated to be worth SS,S12,000."
 The statement further shows that the chief of ordinance believes the war department can dispose of the property for S16,272,000.
 ''Mr. Ford is bound by his proposal to operate plant No. 2, butt the lettsr continues, ''there Is no legal obstacle to prevent his disposing of the other properties, to which he gets title. Should he be able to attain what the chief of ordinance estimates that the government can secure out of the various items, namely S3.00O,00O flor installation of 900 horse power and $600,0O0 for nitrate plant No. 1, and dispose of the Warrior-Muscle Shoals transmission line. as a transmission should he obtain s357,000 for the Waco quarry, he would have left the nitrate plant No. 2, with its S0,O0n horsepower steam plant at a cost to terest on the proceeds of such pos sible sales would amount to a very large sum during the term of the proposed contract"
 A statement appended to the secre- tary's letter. prepared by Major Gen eral Beach, chief of army engineers. emphasized four indirect benefits tfe government would receive in the event the Ford offer was accepted. They are:
 '+The maintenance of nitrate plant in readiness for a war emergency.
 ''The production, in the interest of the public welfare. of large amounts o- fertilizer at a cost not exceeding the reasonable cost of production, providing that the production of ni- trate adapted 10 fertilizing purposes is found to be practical. The elimina- ton of the cost of maintaining and operating the present imperfect faci1i- ties for navigation at Muscle Shoals. amounting to from s35, 900 to ss5,0o9 per annum.
 '-The advantage to interstate com merce and navigation of the far su- perior facilities to navigation that will be secured through the construction of the dams and locks"
 The secretary informs congress that the Air Nitrates corporation, which constructed nitrate plant No. g. un- der contracts purporting to give op- tions of purchase to the corporation has notified him that it claims the right Tn r11,r-