The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1922-08-04

fore provides a series of payments
which when invested in a sinking
fund at as low a rate of interest as
4 Ia per cent will return the entire
cost of both dams, including the $17,
100000 already expended by the gov
eminent This eliminates the capi-I
tai charges and interest and ultimate
~ reduces the cost of power to theI
mere cost of operation and mainten-
ance, which in a large plant is from
S100 to $500 per horsepower per
year, or less than onehalf Of one mill
per kilowatt hour. Under this plan
the bonded Indebtedness on a water
power development is reduced in,
stead of being Increased as is the
customary procedure in re-financing
operations.
I'VE cannot withhold our support
from proposal which embraces a
plan that ma yfurnish an example Of
how perhaps so per cent of the cost
of hydro-electri" power to the consul
Nor may be taken from his power
bill"
The Senators also declared their
willingness to agree with Mr. Ford'S
request that the lease on the power
projects be for 100 years rather than
for fifty years as prescribed by the
Federal Water Power Act. They as
serted that the operations proposed
by Mr. Ford are on a scale without
parallel and cali for an expenditure
by him Of $4,000 900.
In view of the fact that Mr.. Ford
-, bn n nf
electric furnace products" the report
said. with such concerns as the
Aluminium company Of America, whose
rights because of location of their
plants on non-navigable streams are
not limited to 100 years but are per.
retual: and in view of the fact that
there already exists in the country
three large plants. none of which have
rights for less than 80 years, it
seems reasonable that with the re-
SponsibilitieS undertaken by Mr.. Ford,
il is only fair to allow him a lease
period Of 100 years.
In deciding for ourselves that ra-
Their than have the Ford offer reject
ed We will agree to the 100 year lease
period. we have come to this cOnclu-
sion mainly because we believe that
if the Ford offer is rejected the gov
crnment and the public will lose more
in fifty years of government owner
ship and. operation ut Muscle Shoals
than they will gain by refusing to con
sent to the 100 year lease period in
Henry Ford's offer"
The report concluded with an eX-
preston Of opinion on the question
of including the steam power plant
at Gorgas in the Muscle Shoals prop
critics to be disposed of as requested
! by Mr.. Ford. or Of permitting the
| Alabama Power Company opurchase
the governments interests in that
Unit, in accordance with the contract
executed by the company with the
war department.
with reference to the contention
bout the GOrgas steam plant" 1t
said, I'VE feel that we can make little
comment Mr.. Ford has advised our
committee that If my revised offer
for Gorgas is rejected, then | must
understand that the acceptance of my
offer for Muscle Shoals as a whole
and not in partDis refused
wherefore. believing as we do thar
the United States has every right in
the world to accept Mr.. FOrd's pro
rOsal for GOrgas and since Mr.. Ford )
offer will stand rejected unless his
proposal for Gorgas is accepted. We
have II difficulty in deciding what
ought to be done. We are not UNI
mindful of the interests of the Ala
bama Power Company, but as a mat
ter.of duty. we are more mindful of
the interests of the government a;
Muscle Shoals. The Alabama Power
Company desires Gorgas as an aux
Hilary waterpower development and
Mr.. Ford desires Gorgas as an aux
Hilary to its waterpower development.
This phase of the case seems very
clear to u.s."
Washington, Aug. 4-"The Muscle
Shoals project developed under the
Ford Offer" the report says, will
contribute to the early completion
of permanent navigation Improvement
on one of the most important of our
mainland streams. 1t will provide an
outlet by water for a section of the
country having a great variety of use
full raw materials and will do so I'M
der a plan which may be applied on
other American power streams where
by the waterpower furnishes the gov
eminent with its navigation facilities
without cost.
THE contribution to navigation is
important part of the Ford offer and
an added reason for its acceptance.
tirhe chief of Engineers of the
United States Army testified: The
navigation of the Tennessee I regard
rs of great importance-th is, the
development of navigation. The Ten
nessee River is one of the richest
rivers in the country in regard to
mineral deposits along it's bank. They
have many coal fields in Eastern Ten
nessee and in the upper reaches of
the Tennessee River which have not
been touched but to secure this nav
igation not only dam No. 2 is neces.
sary, but as General Beach testified
Dam No. 3 is required also This
dam being located at one of the wild
est points in the Tennessee river is
obviously placed in this disadvanta-
3.