Capital journal. (Salem, Or.) 1919-1980, 1922-02-02
THE CAPITAL JOURNAL, SALEM, OREGON

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, ne offers
to pay $4,000 annually and of
dam No. 3, and locks, the sum of
$4,000 annually. He also agrees
70 furnish electricity for operat-
Ing the Jocks at each of these dams
without charge to the government
and in addition he agrees TO pay
the sum of s23,373, semt-annual-
" for the purpose Of building up
a sinking fund to return to the
United States at the end of the
lease period, a sum OF money
which he estimates IL invested at
4 per cent would De approximate
iy $49,O00,GO0.
Purchases equipment,
AS a condition of this offer,
he asks that the United States sell
him nitrate plants numbers / and
q, the Waco quarry and the
Gorgas-Warrior steam plant, with
all appurtenances, for the sum Of
$5,0O0,000, payable $1,000, 900
down and the balance in annual
installments of $1.O0O,000 each,
with per cent interest on de-
ferred payments.
"As further consideration to
the government, he agrees to op-
crate nitrate plant number two at
the approximate present annual
capacity of its machinery and
equipment in the production of
nitrogen and other fertilizer COM
pounds throughout the lease per-
iod, and to maintain 1t in its pres
ent state of readiness or its equiv
alent, for immediate operation in
the manufacture of materials nee
essary in time of war for the pro-
duction of explosives.
HE further agrees that the fer
tilizer produced at nitrate plant
No. 2 shall not be sold at profit
in excess Of per cent Of the ac-
tual 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.
Demands Option,
'He likewise asks for a prefer
ence 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 al
reasonable rates in an amount
equal to his average consumption
during the previous ten years, IL
case the plant is operated and hii
company does not purchase Oh
lease it. He also states that hi'
proposal must be accepted as {
whole and not in part.
| Attention also is directed to thu
cost of the nitrate plants fol
which Mr.. Ford offers $4,000, 1000
Mr.. Ford is offering but So,
100000 for the title to the two nj
trate plants, the Waco quarry, thu
Gorgas Warrior steam plant
transmission lines and appurtan
ances," said Secretary Weeks, add
ing: $50 that you may better un
derstand the value of the proper
ty, l am attaching to this letter
brief statement prepared by tn
chief of ordnance showing the cos
and estimated salvage value o
these properties. From the tabl
contained in his statement it will
be seen that the properties cos
the United States approximate.
$85, 100000 and that as scral
they are estimated to be worth
$8,812, 1000"
Might Sell Plants
| The statement further show
that the chief of ordnance believe
. the war department can dispose o
the property for $16,272,OOO.
"Mr. Ford is bound by his pro
posal to operate plant No. 2 but,
, the latter continues, there is n
legal obstacle to prevent his dis
: posing of the other properties t.
which he gets title. Should h
be able to obtain what the chic
of ordnance estimates that tn
} government can secure for tn
= various items, namely 100000
] for the Warrior plants, whicI
e have an installation of 1000
~ horsepower, and 100000 for nj
trate plant No. 1, and dispose o