South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-02-03


power plants AZ an annual rental
equivalent % q per cent OF the cost
TO the government Of completing
Dam $50. and constructing Dam
SO. Q. exclusive or the cost OF ac-
curing lands and nowa go necessary
for Dam 30. @.
"The rentals o. I per cent are TO.
commences. respectively. I'm s years
after Dam no. had been COM
pleted % the point where equipment
for 100. 900 horse power IS installed
and ready for service. and three
years after the equipment 20 develop
more than 100000 horse power.
"His offer places upon the United
States the responsi bilttY for repair
and maintenance Of the two dams
other than the power houses which
power houses and electrical equip
ment ne agrees 10 maintain at his
own expense I'm efficient operating
condibion. AS compensation 70 the
United States for the repair and up
keep of Dam NO. and locks he Of
fers 10 pay the sum OF S55,OO0 an
uualIy and Of Dam so. % and locks
"He also agrees 90 furnish cleo
tricity for operating the locks at
each OF these dams without charge
to the government. and in addition
/ no agrees TO pay the sum Of S23 373
/ sem-annualy for the purpose Of
building up a sinking fund to re-
/ turn 20 the United States at the end
I OF the lease period a sum of money
which he estimates if invested at
/ four per cent VIII be Approximately
| $49.OOO,00O.
Asks Nitrate Plants.
AS q condition of this offer he
I asks that tho United States sell to
\ his nitrate plants numbers i and 2,
I the Waco quarry and tho Gorgas-
I Warrior steam plant, with all APP
: purtcuances for the sum Of $4,000
/ 600. payable $1.0OO,00O down and
\ the balance in annual installments
Of S1.OOO,OOO each with FIVE per cent
| interest on deferred payments.
"As a further consideration to the
\ government me agrees to operate
Y nitrate plant number at the ap-
( proximate present annual capacity
of its machinery and equipment in
/ the production Of nitrogen and other
/ fertilizer compounds throughout the
lease, and TO maintain II in its pres
ent state Of readiness, or its equiva-
lent, for immediate operation in the
manufacture Of materials necessary
In time Of war for the production
Of explosives. He further agrees
that the fertilizer produced at plant
number two shall not be sold at a
profit I'm excess Of eight per cent OF
the actual annual cost Of production
thereof. and TO turn over TO the
/ United States nitrate plant number
two whenever It shall be required
tor the national defense.
"He likewise asks for a preference
IN opportunity to purchase or lease
the property at the end Of the lease
period and for the right for a per
iod not stated, 10 be supplied with
electric power at rea sonable rates IN
an amount equal TO his average con
/ sumption during the previous IL
years, in case the plant is operated
and his company does not purchase
must be accepted as a whole anC
not in part"
In n brief summary Of the Offer
which the secretary incorporates II
his letter Of transmission, he men
tons the considerations running &c
the government as follows.
Government Considerations.
"Ca)-Four per cent on part o.
the capital necessary TO complete tht
construction of the power projects
"Cb)-The payment Of a sun
J Semi-annuaIy into a sinking funC
calculated 20 produce about $40.
, 100000 at the end Of the lease per
! Tod. This payment amounts 10 S46.
81 TAG annually. In other words. Mr.
{ Ford proposes to pay approximate,
B. $40. 100000 at the end OF the leas