South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-02-03

period provided the government had
been able % invest his payments at
four per cent per annum
"Cc)-Mr. Ford proposes to paw
$4,000 a year for the upkcep Of
dam mum Der two and IT'S locks and
the sum OF $4,000 a year for the
upkeep Of dam number three and it's
locks. These payments are expect
ed 20 meet the ordinary upkeep ex-
penses with VII tho government
Is charged
"(d)-The proposal requires Mr.
Fords company 20 operate nitrate
plant number two 20 its approximate
present capacity. which is estimated
20 be a production Of 10000 tons
Of ammonium nitrate per annum.
and 10 sell such material at a price
not 20 return a net profit in excess
OF eight per cent Of the actual an
uual cost OK production.
"(e)-Mr Ford's company is TO
maintain nitrate plant number two
I'm its present state Of readiness for
immediate operation for the produc-
ton of explosives and is 20 turn IT,
over to the government. together
with such OF its personnel ass may
be required for the national defense.
"f)-Thc government Will be
saved the expense Of maintaining
and operating the present imperfect
facilities of Muscle Shoals. amount
ing TO from $4,000 to $4,000 per
annum."
Attention IS also directed to the
cost of the nitrate plants for which
I Mr. Ford offers 5000. 900
Mr. Ford is Offering but $1,000
600 for the title 20 the two nitrate
plants, the Waco quarry. the Cor
/ gas-Warrior steam plant. transmits
| sion lines and appurtenances," says
Sec'y Weeks, adding that $50 YOU
may better understand the value OF
I the property, 7 am attaching TO this
I letter a brief statement proposed by
/ the chief Of ordnance showing the
| cost and estimated salvage value OF
these properties.
| Original Cost SIS. 900. 900.
From the table contained in this
/ statement It viii be seen that these
/ properties cost the United States ap-
| proximately sS5,O00,000 and that a,
scrap are estimated TO be worth S.
$4,000"
The statement further shows tina
the chief OF ordnance believes the
war department can dispose Of the
property for S16.272,O 600.
"ATr. Ford is bound by his pro
posal 10 operate plant number two
but" the letter continues. there q
no legal obstacle to prevent his dis
posing of the other properties {,
which he gets title. Should he b,
able to obtain what the chief Of ord
nance estimates that the government
can secure for the various depart
ments. namely S5.OOO.OOO for tn,
Warrior plant which has an installa
ton Of 10000 horse power. an,
100000 for nitrate plant numbe
one and dispose of the Warrior
Muscle Shoals transmission line. a.
a transmission line and not as scrap
for S675,OOO. and should he Obtain
S357,00O for the Warrior quarry
he would haze left the nitrate plan
number two with its 10000 hors
power steam plant at a cost 10 hin
OF less than 100000. The interes
on the proceeds Of such possibI
sales would amount to a very larg
sum during the term Of tho pro
posed contract"
a statement by Maj Cen. Wi
liams. chief or ordnance, SUMMARY
ing the Ford offer from the stand
point OF his department says IL Ia
''the very important advantage O
materially assisting in the develop
ment Of nitrogen preparedness an
J has the disadvantages of confictin
with certain industrial obligation
b with the American Cyanamid C
b and the Alabama Power CO. and O
making n net return TO the govern
ment OF less than S5,O0O.O0O 10
? properties which have an estimate
, salvage value Of some $4,000. 900.