, 1922-02-02
CONTINUED From Page y

the cost OF acquiring lAnds ana HOW
g right necessary sor dam No ~
The rentals OF 4 per cent are to
commence respectively. in sly yeC-S
after dam No. ? has been completed TO
the point where equipmnt for 100 900
horsepower is Installed and ready for
service. and three years after the
equipment to develop $4,000 horsepow
er is Installed and ready for service
a. dam No. ;. In the meantime. dur
ing the six year md the three year
periods, respectively. he offers to pay.
upon dam No. 2 an annual rental OF
100000 and on dam No .. 100000.
His offer places upon the United
States the responsibility for repair and
maintenance OF the two dams other
han the power houses. which power
houses and electrical equipment he
agrees to maintain at his own expense
IN efficient operating condition. As
compensation TO the United States for
the repair and upkeep Of Dam No. 2
and locks he offers to pay $35 600 an
uually and OF dam No 8 and locks,
the sum Of 5000 annually. He also
sPrees to furnish eiNctF!cty for opcr-
ating the locks at each OF these dams
without charge TO the government,
and In addition he agrees to pay the
sum Of S23,s73 s-emi-annuall for the
Iurposs OF building Ut a sinking fund
to return { the United States at tho
end OF the lease period. a sum OF mon
ey which he estimates " investd st 4
per cent VIII approximate S4A00 900.
las a condition of this offer he
asks that the United States sell 10 him
nitrate plans Nos. l and 2. the Waco
quarry and the Gorgas-waTriar steam
plant. with all a-ppurtenances for the
sum OF S5.ooo.o 600. payable $1,000. o0e
down and the balance in annual in
stallments of 81. 900 .oe6 each with five
per sent interest On deferred pay
Lacata.
A a further consideration to the
government he agrees 10 operate nj
trate plant No. 2 at the approximate
present annual capacity OF its ma
ohinery and equipment In the produc-
tlor OF nitrogen and other fertilizer
compounds throughout the leas, pc
Rod and to maintain Il in its present
state or readiness or its equivalent,
for Immediate operation In the manu-
facture of materials necessary in time
OF war for the production OF explosives
He further agrees that the fertilizer
produced at nitrate plant No. 2 shall
not be sold at a profit in excess of S
per cent of tho actual annual cost OF
production thereof. and to turn over
10 the United States nitrate plant No.
2. whenever it shall be required for
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 period
not stated. to be supplied with electric
power at reasonable rates in an
amount equal to his average con
sumption during the previous 10 years,
in case the plant is operated and his
does not purchase or lease
Il. He also states that his proposal
NUT be accepted as a whole n not in
part"
In a brief summary OF the offer
which the secretary incorporates in
his letter of transmission be mentions
the considerations running to the gov
eminent as follows:
'ia) -Four per cent on part of h
capital necessary to complete the CON
struction of the power projects. tho
interest Is proposed to be paid upon
that part of the governments invest
ment which goes to pay for lands and
fIowaxe rights for dan No. 8. which
item Is estimated by h engineers to
exceed 81 900 900 in probable cast)
"b) The payment OF a sum semi-an
nually into a sinking fund calculated
IN roduc about $49. 900 900 at TIT
and of the lease periods. This payment
AMOUNTS to s4s.74s annually. In other
words Mr.. Ford proposes to pay ap
proximately $40. 600. 900 at the end OF
The lease period provided the govern
ment has been, able to invest his pay
ments ut 4 per cent per annum,
.tcO Mr.. Ford proposs to pay s3o,oot
a vear for the upkeep OF dam NO. Z
and its locks and the sum of $2o.Ooo a
vaar for the upkeep Of dam No. . n
its locks. These payments arc expect
ed TO meet the ordinary upkeep eN
pense with which the government is
charged. Mr.. Ford assumes the re
~snonsIbIlity for the upkeep and repair
Of the power houses and equipment SO
that ultimately such equipment Is eN
nected to be turned back to the gov
in approximately as good son
dftion as when received.
'1dl The proposal requires Mr.. Fords
company to operate nitrate plant No.
2 to Its approximate present paci
which is estimated TO be a production
of 10000 tons OF ammonium nitrate
per annum, and to sell such material
at a price not to return a net profit
IN excess of s per Ger. Of h annual
cost OF production.
.(e) Mr.. Ford's company is to main
tain nitrate plant No. 2 in its present
state of readiness for immediate oper
alton for the production of explosives
is to turn 1t over to he govern
,nent, together with such of its per
sonnet as may be required for the ma
flonal defense.
20 The government viii be saved
the expense of maintaining an oper-
the present imperfect facilities