Palatka daily news. [volume] (Palatka, Fla.) 1919-1994, 1922-02-02
WEEKS FAVORS ACCEPTING
OF FORD'S OFFER


CONTINUED from Page ~
locks, he offers to pay the sum of
$4,000 annually, and of dam No. 8
and lock the sum of $4,000 annual
ly. He also agrees to furnish cleo
tricity for operating the locks at
each Of these dams without charge to
the government and in addition he
agrees to pay the sum of $23373
sem annually for the purpose of
building up a sinking fund-to re-
turn to the United States at the end
of the lease period a sum of money
which he estimates if invested at
per cent, will be approximately $49,-
100000. AS condition of this Of
fer, he asks that the United States
sell to him nitrate plants Nos. l and
/ 2, the Waco quarry, and the Gosgas-
Warrior steam plant, with all appur-
tenances for the sum of $5,O00,0O0
payable $1,00O,000 down and the bal
ance in annual installments of ST.
100000 each with five per cent in
terest on deferred payments. AS a
further consideration to the govern
ment he agrees to operate nitrate
plant No. 2 at the approximate pres
ent annual capacity of its machinery
and equipment in the production of
nitrogen and other fertilizer COM
pounds throughout the lease period
and to maintain it in it's present state
of readiness, or it's equivalent, for i'm
mediate operation in the manufac-
ture of materials necessary in time
of war for the production of eXplos-
ives. He further agrees that the fer
tilizer produced at nitrate plant No.
2 shall not be sold at profit in ex-
cess of 8 per cent of the actual an
nual cost of production thereof, and
to turn over to the United States nj
trate plant No. 2 whenever it shall
be required for he national defense.
He likewise asks for a preference in
opportunity to purchase or lease the
property at the end of the lease per-
iod and for the right for a period not
stated to be supplied with electric
power at reasonable rates in an
amount equal to his average consump-
ton during the previous ten years, in
case the plant is operated and his
does not purchase or lease
it. He also states that his proposal
must be accepted as a whole and not
in part.
Advantages to the Government
"There are number of advantages
to the government in the present pro-
posals that were not apparent in the
first offer. Mr.. Ford's original pro-
posal of July 8, 1921, contained two
dealing with the matter
of amortization of the cost of con-
struction of the two dams.
"ln the present proposal the sub
ject of amortization is covered in one
numbered 10, which reads
as follows:
"For the purpose of enabling the
government to create and provide a
sinking fund to retire the cost of |
lam No. 8 at the end of one hundred |
(100) years the company will, at the
beginning of the fourth (4th) year
Of the lease period and semi-annually
thereafter for the remaining term of
The lease, pay to the United States
government the sum of three thous-
and five hundred and five dollars
($3, 505); and for the purpose of en-
abling the government to create and
provide a sinking fund to retire the
cost of dam No. at the end of one
hundred (100) years, the company will
at the beginning of the seventh (7th) |
year of the lease period and semi
annually thereafter for the remain
ing term of the lease pay to the
United States government the sum of |
nineteen thousand eight hundred and
xty-eight dollars ($19,S6S)."
at will be observed that the pro-
vision for amortization in the last
is very much more favorable |
to the United States than it was in the
offer of July s, 1921. Il
Dams Would Cost S42,OO0,O00
SHOULD the dams be constructed
at cost of not to exceed $42,OO0,OOO |
as estimated by Mr.. Ford's engin-
GERS, rethe would be left to apply on
he investment of the government |
re! tofore made, whatever the amort-
cation payments would produce in