The New York herald., 1922-02-03

Bureau of Ordnance considers essential.
MaJor-Gen. Beach of the Engineer Corps
considered the amortization payment
small. and advises that 1t should pro-
vide enough to repay the United States
for the initial capital carrying charge
and the eventual payment of costs in the
interval before full payments begin"
Other comments by Secretary Weeks
are the following:
In case the proposed company sells
any or all power developed at either or
both of these dams it should be required
to do so under terms and conditionz
imposed by the Federal Power Commits
sion or the Public Service Commission
OF Alabama in the manner required of
other power companies.
II believe it would be better policy
TO limit this contract to a term of fifty
years to conform to the established
policy of the Federal Government as set
out in the water power act. In my
opinion contract such as that pro-
posed for period of 100 years is not
wise general policy in view of the un-
known possibilities surrounding water
power developments and the probability
OF changes which may be made. espe-
cially in the transmission of power.
While paragraphs and of the pro-
posal provides that Mr.. Ford's COM
pany Is to pay to the United States an
nually the sum of $3.50 on Dam No 2
and 100000 on Dam No. for repairs.
maintenance and operation Of the dams.
gates and locks. Congress may we'll
consider whether II would be more de-
sirable to have Mr.. Ford maintain the
property and omit these payments
In case Ford's proposal is not ac-
cepted, Weeks recognizes that Dam No.
should be completed by the Govern
ment and that the power requirements
for commercial purposes. the benefits to
navigation. as well as the possible needs
of the Government. would warrant this
expenditure. If this were done the Gov
ernment may itself undertake to sell
the product TO the pest advantage. In
such case the amount of the Govern
ments present proposed investment
would be very materially reduced. be-
cause Dam No. 3. costing from S1S.00O.-
600 to S25, 1000. .00C. would noe be built.
At Dam No. 1t would not be .:sces-
sary to make the full installation OF
power plant until the market should
require such installation. This partial
installation would effect a saving of
present investment in at least the sum
of $3,000,000. leaving. according to the
Chief of Engineers estimate, not to ex-
ceed $22.000.000 to be invested by the
government at tnlS tlme instead Oh
$40,000,000 to $50.000,000. The analysis
made by the Chief of Engineers shows
a loss in excess Of $15,000.00O due to
delay in the receipt of returns from
rentals. Such loss would hardly be
justified in case the investment is to
ultimately bear but per cent. interest
if there were not other considerations
which are beneficial to both the Govern
ment and the people of that vicinity"
Frederick L. Engstrum of Wilmington.
n. c., has submitted to Secretary Weeks
through former Senator Marion Butler,
as attorney. his supplemental bid for
the Muscle Shoals project. Summa rized,
the features of the Engstrum offer are
as follows:
A guarantee cost to complete.
Government retains ownership and
preserves assets of S141. 600, 900. In re-
turn from the investment on a basis of