Arizona republican., 1922-02-03

up so that there can be no question
as to it's proper construction"
Secretary Weeks outlined the vol
luminous offer by Mr.. Ford in this
way:
"Mr Ford offers to undertake the
completion of dam No. and the
construction OF dam No. 3, according
to the governments plans, for which
he shall be reimbursed the actual
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. 3 lex
elusive of the cost of acquiring lands
and flowage rights necessary for
dam No. 81.
."The rentals Of four per cent are
to commence, respectively, in six
years after dam No. 2 has been COM
pleted to the point where equipment
for 100, 600 horsepower is installed
and ready for service, and three years
after the equipment to develop SV,OOV
horsepower is installed and reauy LOT
service at dam No. 3. In the mean
time. during the six years and three
wear. periods, respectively. he offers
to pay. upon dam NO. an annual
rental of 100000 and on dam no.
3, 100000.
Government To Repair Dams
'EIis offer places upon the United
States the responsibility for repair
and maintenance of the two dams
other than the power houses, which
power houses and electrical equip
ment he agrees to maintain at his
own expense in efficient operating
condition. AS compensation to the
United states for the repair and up
keep of dam No. ? and locks he offers
to pay $4,000 annually and of dam
No. 8 and locks the sum OF SZO,OOo
annually. He also agrees to furnish
electricity for operating the locks at
each of these dams without charge
to the government and in addition ne
agrees to pay the sum of S23.373 semi
annually for the, purpose OF building
up q sinking fund to return TO the
United states at the end OF the lease
period, a sum of money when ne
estimates iT invested at four per cent
will be approximately $4e, 100000.
"As a condition of this offer he
asks that the United States sell TO
him nitrate plants number one ano
two, the Waco quarry, and the Cor
gas Warrior steam plant. with all
appurtenances for the sum Of x5,0OO,-
600. payable S1,00O,0OO down and the
balance in annual instaliments of
Al .OOO. 900 each with five per cent
interest on deferred payments.
"As a further consideration to the
government he agrees TO operate nj
trate plant number two at the ap-
proximate present annual capacity OF
it's machinery and equipment In the
production OF nitrogen and other Ter
L. faxar1a hos
lease period, and to maintain 1t In its
present state of readiness Or Its
equivalent, for immediate operation
in the manufacture of materials nec-
essary in time OF war for the pr0duc-
tion of explosives. He further agrees
that the fertilizer produced at nitrate
plant NO. 2 shall not be sold at
profit in excess OF eight per cent OF
the actual annual cost of production
there Of, and TO turn over TO the
United States nitrate plant No. 2
whenever it shall be required for the
national defense.
New Lease Preference
rife likewise asks for a preference IL
OppOrtunity to purchase or 10 lease
the property at the end of the lease
period and for the right for period
not stated. to be supplied with electric
power at reasonable rates in an
amount equal to his average con-
sumption during the previous 10
years, in case the plant Is operated
and his company does not purchase or
lease it. He also states that his pro-
posai must be accepted as a whole
and not in part"
In o brief summary OF the offer
which the secretary Incorporates in
his letter of transmission he mentions
the considerations running to the
government as follows:
"(A) -Four per cent on part OF the
capital necessary to complete the con-
struction OF the power projects. (no
interest is proposed to be paid upon
that part of the governments invest
ment which goes to pay for lands and
flowage rights for dam No. 3. which
item is estimated by the engineers 10
exceed $2,000,000 in probable COST
"(B) The payment of sum semi
annually into a sinking fund calculat-
ed to produce about $49,00O,000 at the
end of the lease periods. This pay
ment amounts to $46,746 annually. In
other words. Mr.. Ford proposes to pay
approximately s49,000.000 at the end
of the lease period provided the gov
ernment has been able to invest his
payments at four per cent per annum.
"(C) Mr.. Ford proposes TO pay $685.
900 year for the upkeep OF dam No.
2 and its locks and the sum OF $4,000
a year for the upkeep OF dam No. 3
and its locks. These payments are
expected to meet the ordinary upkeep
expense with which the government Is
charged. Mr.. Ford assumes the re-
sponsibility for upkeep and repair of
| the power houses and equipment so
that ultimately such equipment is ex-
pected to be turned back TO the gov
ernment in approximately as good
condition as when received.
Manufacture Fertilizer
"(D) The proposal requires Mr..
Ford's company to operate nitrate
| plant No. Q to it's approximate present