Capital journal. (Salem, Or.) 1919-1980, 1922-02-02

"OAAu NV OO hSSOopoAy W AA0ANS
the full installation of power
plants on the Wilson dam until
the market required such installa-
tion.
Would Furnish Work.
"This partial installation" he
explains, would effect a saving
of investment in at least the sum
of 100000, leaving according
to the chief engineers estimate,
not to exceed $22,000,000 to be
invested by the government at
this time instead of $40, 100000 to
$50,000,000."
The question of unemployment
is recognized as a factor in the
Muscle Shoals question.
'At this time" he points out,
"when there is a large amount of
unemployment, 1t is not without
Importance to consider the advan-
tage to the nation of the employ
ment Of the large amount of labor
required in undertaking this de-
velopment."
The secretary explains his ac'
tion in sending the offer to con-
gress by declaring he is without
authority to accept Mr.. Ford's Of
fer or dispose Of the property as
a whole, either by sale or lease
Involves New Policy.
He points out the necessity fol
determining whether the advan-
tage to the government to have
nitrate plant number maintain.
ed inreadiness for the manufac,
ture of explosives and in actua,
production Of fertilizer, together
with the improvement to naviga
tion, If of sufficient Importance tC
Justify the proposed departure
from the present policy Of the law
in regard to dealing with the wat
er power resources and to warran'
leasing to Mr.. Ford. -governmen
property for so long a period.
81 believe it would be bette,
policy" he wrote, "to limit thu
contract to a term Of SO years Tin
stead of 1909 to conform with thu
established policy of the fedora
government as set out in the wat
er power act"
The secretary also suggested ;
modification by congress Of thu
proposal so that in the event th'
operating company to be created
failed to carry out the contract
some penalty would be imposed.
Proposal Outlined.
Referring to clause in thu
contract submitted, the secretary
adds that it might be contendeC
that the language used ais sus
ceptible to a construction to tn,
effect that Mr.. Ford is PERSONAL!
bound only to see that his com
pany enters into the contracts re
quired to carry out the terms o
the proposal, and that poin
should be cleared up so that ther
can be no question as to its prop
er construction"
Secretary Weeks outlined tn
voluminous offer by Mr.. Forc Il
this way:
"Mr. Ford offers to undertak
the completion of dam No. 2, an
the construction of dam No. 3, &C
cording to the governments plans
for which he shall be reimburse
the actual cost and to lease |th
dams and power plants at an an
annual rental equivalent to 4 pc
cent of the cost to the governmen
of completing dam No. 2 and con
struction dam No. exclusive o
the cost of acquiring lands an
flowage rights necessary for dan
No. 81.
Four Per Cent Rental.
"The rental of 4 per cent is t
commence, respectively, in sil
years after dam number 2 ha
been completed to the point wher
equipment for 100000 horsepowe
is installed and ready for service
and three years after the equip
ment to develop $4,000 horsepow
er is installed and ready for serV
ice at dam No. 8. In the mean
time, during the six-year an
three-year periods, respectively
he offers to pay, upon dam No.
| an annual rental of 100000 an
on dam No. 8, 100000,
ellis offer places upon tn
United States the responsibilit
for repair and maintenance Of tn
two dams other than the powe
houses, which power houses an
electrical euuipment he agrees {