The Union daily times. [volume] (Union, S.C.) 1918-current, 1922-02-04
annual rental of s1,2oo,ooo for Dam


No. 2 and its power plant and ap-
purtanres,. installation Of equipment,
capable OF producing 100000 horse
power, and rental Of 100000 to be
paid annually during the first six
years Of the lease. On proposed Dam
No. he offered fixed annual rental
Of $4s0,000, commencing three years
after $4,000 horsepower should be de-
veloped, and 100000 per annum for
the first three years of the lease
period. Provision was made for GER
tain upkeep charges and payments to
be made toward sinking fund esti-
mated to be sufficient to amortize ap-
proximately $4s,OO0,OOO of the cost of
the dams. Under this proposal the
United States was to undertake the
completion of Dam No. 2 ard the con-
struction of Dam No. 3. This offer
was conditioned upon the United
States selling to Mr. Ford Nitrate
Plants No. and No. 2, the Waco
quarry and its equipment, and the
Gorgas-Warrior steam plant and
transmission line and appurtenances,
all for the price of $5,OOO,OOO.
"At my suggestion, Mr.. Ford placed
in one instrument his offer as modi-
fled, which was signed by him on JAN
25, 1922, and delivered to me on Jan.
27, and which / have the honor to
transmit herewith for such action as
congress may deem appropriate"
'In brief, Mr.. Ford offers to under
take the completion Of Dam No. 2 and
the construction of Dam No. 8, ac-
cording to the governments plan, for
which we shall be reimbursed the ac-
tual cost, and to lease the dams and
power plants at an annual rental
equivalent to a per cent of the cost to
the government of completing Dam
No. and constructing Dam No. 3
Exclusive of the cost of acquiring
lands and flowage rights necessary
for Dam No. 81. The rentals of 4
per cent are to commense, respective
ly, in six years after Dam No. 2 has
been completed to the point where
equipment for 100000 horsepower is
installed and ready for service, and
three years after the equipment to
develop $4,000 horsepower is installed
and ready for service at Dam No. 3.
In the meantime, during the six-year
and three-year periods, respectively, ),
tie offers to pay, upon Dam No. an
annual rental of 100000 and on Dam
No. 3, $16O,O00. His ffeor 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
equipment 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 the sum of $4,000 annually,
and of Dam No. 3 and lock the sum
Of 100000 annually. He also agrees
to furnish electricity for operating the
locks at each of these dams without
charge to the government and in addi-
tion he agrees to pay the sum OF
$23, 1878 semi-annually for, the purpose
of building up sinking fund to re-
turn to the United States at the end
of the lease period, sum of money
which he estimates if invested at 4
per cent will be approximately $49,-
100000. AS condition of this offer
he asks that the United States sell to
him Nitrate Plants Nos. and 2, the
Waco quarry, and the Gorgas- Warrior
steam plant, with all appurtenances
for the sum of SIS .OO0, 900, payable ST.
100000 down and the balance in an
nual installments Of $1,000,000 each
with five per cent interest on deferred
payments. AS further consideration
to the government he agrees to op-
crate Nitrate Plant No. 2 at the ap-
proximatc present annual capacity of
its machinery and equipment in the
production of nitrogen and other fer
tilizer compounds throughout the
lease period, and to maintain it in it's
present state Of readiness, or it's
equivalent, for immediate operation in
the manufacture of materials ncces-
sary in time of war for the production
of explosives. He further agrees that
the fertilizer produced at Nitrate
Plant No. 2 shall not be sold at a
profit in excess of per cent of the
actual annual cost of production
thereof and to turn over to the United
States Nitrate Plant No. whenever
it shall be required for the national
defense. He likewise asks for pref
erence in opportunity to purchase or
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-
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