Arizona republican., 1922-02-03

capacity, which Is estimated to be a
reduction of 10000 tons of ammon-
ium nitrate per annum. and to sell
such material at price not to return
a net profit in excess of eight per cent
Of the actual annual cost of produc-
tion.
"(E) Mr.. Ford's company is TO
maintain nitrate plant No. 2 in its
present state of readiness for i'm
mediate operation for the production
of explosives and is to turn it over
to the government, together with such
of it's personnel as may be required
for the national defense.
"(F) The government will be saved
the expense of maintaining and
operating the present imperfect fa-
ciiities for navigation at Muscle
Shoals amounting to from $4,000 to
$4,000 per annum."
Attention also is directed to the cost
Of the nitrate plants for which Mr..
Ford offers $5.0o0,00O.
Mr. Ford is offering but $4,000, 900
for the title to the two nitrate plants.
the Waco quarry, the Gorgas- War
rior steam plant, transmission lines
and appurtenances," said Secretary
Weeks, adding that so you may bet
ter understand the value of the prop
erty / am attaching to this letter a
brief statement prepared by the chief
or ordinance showing the cost and
estimated salvage value OF these
properties. From the table contained
in this statement it will be seen that
these properties cost the United
States approximately $S5,0C0,000 and
that as scrap they are estimated to
be worth sS,812.000."
Property Worth sic, 6,272,ooo
The statement further shows that
the chief of ordinance believes the
war department can dispose of the
property for $16,272,000.
"Mr. Ford is bound by his pro-
posal TO operate plant No. 2, but"
the letter continues, there is no legal
obstacle to prevent his disposing of
the other properties to which he gets
title. Ghould he be able to obtain
what the chief of ordinance esti-
mates that the government can Sc
cure for the various items, namely
$3,Q00,000 for the Warrior plants,
which have an installation of 10000
horsepower, and $600,00 for nitrate
plant No. /, and dispose of the War
rior- Muscle Shoals transmission line,
as a transmission line and not as
scrap, for $675000, and should he OBJ
tain 1857 900 for the Waco quarry, he
would have left the nitrate plant No.
2 with its $4,000 horsepower steam
plant at a cost to him of less than
100000. The interest on the pro-
ceeds of such possible sales would
amount to a very large sum during
the term of the proposed contract"
The letter says the present revenue
from the rental of power plant No.
2 is a minimum of $4,000 a year.
with a possibility that, in the event
of operation, it may run to $260,000.
The cost of maintenance for the dis
cal year 1921 is given at 100000.
A statement by Major General Will
liams, chief of ordnance, summar-
izing the Ford offer from the stand
point OF his department, says ii has
"the very important advantage of
materially assisting in the develop
ment OF nitrogen preparedness and
has the disadvantage of conflicting
with CONTRA ctual obligations with the
American Cyanamid company and
the Alabama Power company and of
making net return to the govern
nent OF less than $5.000.000 for prop
critics which have an estimated salv-
age value of some $16,000,000
Benefits 10 Government
Another statement appended to the
secretary's letter, prepared by Major
General Beach, chief OF army engin-
GERS, points out four indirect benefits
the government win receive in the
event the Ford offer is accepted.
They follow:
THE maintenance OF a nitrate
plant in readiness for a war emer-
gency.
"The production, in the interest of
the public welfare, of large amounts
of fertilizer at a cost not exceeding
the reasonable cost of production,
provided that the production OF nj
trate adapted to fertilizing purposes
is found to be practicable.
"The elimination of the cost of
maintaining and operating the pres
ent imperfect facilities for navigation
at Muscle Shoals, amounting to
from $4,000 to $4,000 per annun1.
1.-THE advantage to interstate COM
rnerce and navigation of the far SUI
perior facilities to navigation that
will be secured through the construc-
tion of the dams and locks"
The secretary informs congress
that the Air Nitrates corporation,
which constructed nitrate plant No.
Q under contract purporting to give
options of purchase to the corpora
ton, has notified him that II claims
the right to exercise the option to
purchase the plant under as favor
able terms as those proposed by Mr..
Ford in the event Mr.. F'ord's Sffer Is
accepted.