The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-02-02

CONTINUED from First Page.)
siderations which will pass to the
respective parties to the proposed
arrangement"
Il believe it would be a better
policy" the secretary wrote, ito
limit the contract to a term of so
years INSTEAD of 1000 TO conform
with the established policy Of the
federal government as set out in
the water power act"
The secretary also suggested
modification 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"
Summary Of Plan.
In a brief summary of the offer
which the secretary incorporates in
his letter of transmission, be men
lions the consideration running to
the government as follows:
"(A)-Four per cent on part of
the capital necessary to complete
the construction of the power prof.
ects, mo interest is proposed to be
paid upon that part of the govern
ment's investment which goes to
pay for lands and flowage rights
for dam No. 3, which item is esti-
mated by the engineers to exceed
$2.000.000 in probable COST
"(B)-The payment of sum
semi-annually into sinking fund
calculated to produce about $49,-
600, 600 at the end of the lease pc
RODS. This payment amounts TO
$46.746 annually In other words,
Mr.. Ford proposes to pay approx
mately S49.0GO,0O0 at the end of
the lease period provided the gov
ernment has been able to invest his
payments at Per cent per annum.
'(C)-Mr Ford proposes to pay
S35, 900 a year for the upkeep of
cam No. 2, and its locks and the
sum of $4,000 a year for the up
keep of dam No. 3, and its lock.
These payments are expected to
meet the ordinary upkeep expense
with which the government is
charged. MIR. Ford assumes the re-
sponsibility for upkeep and repair
OF the power houses and equip
ment so that ultimately such equip
ments is expected to be turned back
to the government in approximate
ly as good condition as when re-
ceived.
"CD)-The proposal requires Mr..
Ford's company To operate nitrate
plant No. 2, to its approximate
present capacity, which is estimat-
ed to be a production of 10000
tons of ammonium nitrate per an
mum, and to sell such material at
price not to return net profit
in excess of s per cent of the actual
annual cost of production.
GENE. F'Ord's company is to
maintain nitrate plant No. 2 in its
present state of readiness for i'm
mediate operation for the produc-
ton of explosives and is to turn it
over to the government. together
with such of its personnel as may
be required for the national de-
Tense.
"(FD-The government will be
saved the expense of maintaining
and operating the present imper-
feet facilities for navigation at
Muscle Shoals amounting to from
$4,000 10 $4,000 per annum."
Attention is also directed to the
cost OF the nitrate plants for which
Mr.. Ford offers $1,000 900.
'Mr. Ford is offering but $1,000
600 for the title TO the two nitrates
plants, the Waco Warrior. the
Georges Warrior steam plant, trans
mission lines, and appurtenances,
says Secretary Weeks, adding that
80 you may better understand the
value of the property, l am attach
ing to this letter a brief statement
prepared by the chief of ordnance
showing the cost and estimated sal
wage of these properties. From the
table contained in this statement it
will be seen that these properties
cost the United Staes approximate
ly $S5,000,000, and that as scrap
they are estimated to be worth
$S.S12 600"
Plants Worth $f6272,OOO.
The statement further shows that
the chief of ordnance believes the
war department can dispose of til :
property for SIC, 272, 900
MIR. Ford is bound by his pro-
posal to operate plant number two,
but" the letter continues, there Is
no legal obstacle to prevent his dis
posing Of the other properties TO