The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-02-02
ONLY CONGRESS
Continued from Page one)

NC0ntlnued from rage One)
necessity for determining whether
the advantage to the government in
having nitrate plant number main
tanned in readiness for the manufac-
ture of explosives and in actual pro-
duction of fertilizer. together with the
improvement to navigation is of suf-
ficient importance to Justify the pro-
posed departure from the present pol
icy of the law in regard to dealing
with the water power resources of the
nation and to warrant leasing to Mr.
Ford government property for SO long
a period at the rental proposed.
Would Shorten Contract.
IT believe it would be a better pol
icy" the secretary wrote, ito limit the
contract to a term of fifty years lin
stead of 1000 to conform with the es-
tablished policy of the federal gov
eminent as set out in the water power
act''
The secretary also suggested modi-
ftcation by congress of the proposal
so that in the event the operating
company to be created failed to carry
out performance of the contract, some
penalty would be imposed for such
failure. Referring to clause in the
contract submitted, the secretary adds
it might be commended that the Ian
guage used sis susceptible of a con-
struction to the effect that Mr.. Ford
is personally bound only to see that
his company enters into the contracts
required to carry out the terms of the
proposal. and this point should be
cleared up so that there can be no
question as to its proper construction"
"'Mr. Ford is bound by his proposal
to operate plant number 2, but" Mr..
Weeks continues, there is no legal
obstacle to preveTS his disposing of
the other properties to which he gets
title. Should he be able to obtain
tho o1iaf Of ordnance estimates
that the government can secure for
the various items, namely. 100000
for the Warrior plants, which have an
installation of 10000 horsepower, and
100000 for nitrate plant number 1,
and dispose Of the WarriorMuscle
Shoals transmission line as a trans
mission line and not as scrap. for
5000, and should be obtain $357,-
600 for the Waco quarry, he would
have left the nitrate plant number
with it's $4,000 horsepower steam
plant at 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 num-
Der 2, is a minimum of $4,000 a year
with a possibility that in the event of
operation it may run to S26o,000. The.
cost of maintenance for the fiscal year
1921 is given at 100000
a statement by Major General Will
liams, chief of ordnance. summarizing
the Ford offer from the standpoint of
his department, says it has the very
important advantage of materially as
sisting in the development of nitrogen
preparedness and has the disadvan-
tage of conflicting with contractual
obligations with the American cyanide
company and the Alabama power COM
pany and of making a net return to
the government of less than $4,000
000 for properties which have an esti-
mated salvage value of some S16,-
00e. 000."
Another statement appended to the
secretary's letter, prepared by Major
General Beach. chief Of army en-
gineers. points out four indirect benz
fits the government will receive in
the event the Ford offer is accepted.
They follow:
The maintenance Of nitrate plant
II. rea diness for a war emergency
THE production in the interest of