The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1922-02-02
WAR SECRETARY RELUCTANT
TOPERMIT FLIVVER MAKER TO
HANDLE BIG NITRATE PLANTS

parently $4S,000,000 of the cost of the
dams. Under this proposal the Unit
ed States was to undertake the COM
pletion of dam No. 2 and the construc-
ton of dam No. 3. This offer was con-
ditioned upon United States selling to
Mr.. Ford nitrate plants No. l and 2,
the Waco quarry and its equipment,
and the Gorgas-Warrior steam plant
and transmission line and appurten-
ances, all for the price of $5,000,000.
"At my suggestion Mr. Ford placed
in one instrument his offer as modi
fed which was signed by him on
Jan. 25, 1922, and delivered to me
on Jan. 27, and which | have the
pleasure to transmit herewith for such
action as congress may deem appro-
pirate.
What Ford Undertakes
"In brief, Mr.. Ford offers to under
take the completion Of dam and the
construction of dam No 8 according
to the governments plans, for which
he shall be reimbursed the. actual
cost, and to lease the dams and power
plants at an annual rental equivalent
to four per cent of the cost to the
government of completing dam No. 2
and constructing dam No. exclusive
of the cost of acquiring lands and
llowage rights necessary for dam 81.
The rentals of four per cent are to
&C mmence, respectively in six years
after dam No 2 has been completed
to the point where equipment for 100.-
900 horsepower is installed and ready
:or service, and three years after the
equipment to develop $4,000 horse
power is installed and ready for serv-
ice at dam No. 8. In the meantime,
during the six years and three years
periods, respectively, he offers to pay,
upon dam No. 2, an annual rental of
100000 and on dam No. 3 100000
His offer places upon the United
States the responsibility for repair
and maintainance of the two dams
other than the power houses, which
power houses and electrical equip
ment 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. 2 and locks, he Of
fers to pay the sum of $4,000 annual
ly, and of dam No. and lock the sum
of $4,000 annually.
He also agrees to furnish electricity
these dams, without charge to til =
government; and in addition he agrees
to pay the sum of $23,37 semi-annual-
ly for the purpose of building up a
sinking fund to return the United
States at the end of the lease period
a sum of money which he estimates if
invested at four pr cent, will be ap-
proximately $49,000,000. As a condi-
fEwN 80 kl,s h. Al.
United States sell to him nitrate
plants Nos. 1 and 2, the Waco quarry
and the Gorgas-Warrior steam plant,
with all appurtenances for the sum
of S5,000000, payable $1,000000 down
and the balance in annual Install
ments of $1.000,000 each with five per
cent interest on deferred payments
AS a further consideration to the
government he agrees to operate nj
trate plant No. 2 at the approximate
present annual capacity of it's ma
chinery and equipment in the produc-
tion of nitro-glycerine and other fer
tilizer compounds throughout the lease
period, and to maintain it 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 ex-
plosives. He further agrees that the
fertilizer produced at nitrate plant
No. 2 shall not be sold at a profit in
excess of eight 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 an option to
purchase or lease the property
at the expiration of the lease period,
Second Offer Better Than First
'+There are q number of advanta geH
to the government in the present pro-
rosals that were not apparent in the
first offer. Mr.. Ford's original pro-
posal of July s, 1921, contained two
paragraphs dealing with the matter
OF amortization of the cost of con-
struction of the two dams.
"In tho present proposal the sub
ject of amortization is covered in one
paragraph numbered 10 which reads
as follows:
Amortization Plan
"'For the purposs of enabling the
government to create and provide a
sinking fund to retire the cost of dam
No 3 at the end of one hundred (100)
years, the company will, at the begin
ring of the fourth "a year of the
lease period and semi-annually there
after for the remaining term of the
lease. pay to the United States the
sum of three thousand five hundred
and five dollars (s3,505) and for the
purpose of enabling the government
to create and provide a sinking fund
to retire the cost of dam No. 2 at the
end of one hundred (100) years, tlic
company will at the beginning Of tho
seventh (7th) year of the lease period
and semi-annually thereafter for the
remaining term of the lease pay to the
United States the sum OF nineteen
Thousand eight hundred and sixty
aiohf dollars 1910 262l,