The Birmingham age-herald., 1924-04-27

say this sum is. sufficient for these purposes.
 (d) To pay annually $360,000 rental on dams for first six years and thereafter per cent of cost of both dams except the $17 ,000. 900 expended wastefully during war time construc- tion.
 Gel To establish sinkink fund which at end of the lease period, as estimated | by the Secretary of War, will amount to $5S,O00,000.
 (f) To furnish free 3O0-horse- power continuously for the operation of the locks on the dams. This win re- lieve the necessity of operating the locks on Muscle Shoals canal costing, heretofore, some $45,000 annually.
 These paSments amount to an aver age annual payment of $3,450, 900; the government will be relieved of main- tenance charge that has amounted to | $S,000, GOO, since the sarmistice was signed; the country freed of depend erce upon foreign power for ammuni tion; and the farmers supplied with fertilizer at one-half the present cost "a very different situation from junk ing the whole business. And all this does not take into account the building fof a new industrial sectioffi in Ala bama.
 It is said that the price paid is too small. but when the entire considera- tion is looked at, the initial payment becomes a mere deposit to bind the bargain. President Coolidge said that that if the purposes of the development could be secured the price paid is of small moment.
 But is the price too small? The properties he seeks to purchase cost $S5, 100000, but were constructed in the haste of war times and at war prices. At the same time fertilizer and power companies declined to touch the proposition of operation, the ordnance department estimated the salvage value of these plants at $16,000,000 Deduct from that the payment of $5,000, 900 cash payment and the remaining $11,- 900 0,000,, is, says General Williams of that department; "the price which the United States is paying for nitrogen preparedness" That sum is even less when the amount properly chargeable to navigation Is deducted. And who can estimate the value of nitrogen prepared ness?
 Old Hickory plant, costing $79,O00,- 900, had an estimated salvage value of $7,600 000-but the best price ob- tainable was $3,500,000. And this sale removed that plant from any construc- tive operation, it was junked.
 It is said that he does not agree to make fertilizer. The offer recites that since the manufacture of fertilizer is one of the principal considerations of the offer: 'SThe company expressly agrees that continuously throughout the lease, except as it may be presented by re- construction of plant itself, or by war, strikes, accidents, fires or other causes beyond its control, it will manufacture unmixed, and with or without filler, according to demand, at nitrate plant No. 2 or its equivalent, or at such other plant or plants adjacent or near thereto as 1t, may construct, using the most economical source of power avail able"
 The offer also states that the 10000 tons of nitrogen (the capacity) shall be devoted to that use. After making that promise, would Ford, or his com pany, dare to be false to the farmers who buy his tractors by the thousands and his automobiles of the tens of thousands?
 To those who are not deliberately seeking different meaning, that language binds the company to produce that much fertilizer. But it is said that the market price, being beyond his con- trol, might constitute an excuse not to manufacture fertilizer. But as every lawyer knows, that phrases means, causes similar to those named just be- fore it (See Am. Bridge company. Case 107 s. W. 279), and would not in- clude the market, price. The language is that of all contracts of that nature
 It is further claimed that if there was no demand he would not be obliged to make fertilizer, saying that the phrase according to demand" refers to the manufacture rather than to the kind. Well, he binds himself to make the best sort possible, and if there is no demand for fertilizer at all, why require the economically wasteful act of continuing to make what nobody wants. But the phase refers to the kind he will make the kind the public wants. But if the language be ambig- nous, 1t is Ford's own language, and every lawyer knows it will be con structed most strongly against him. It is further objected that he might charge such a price that no one would buy and so evade his obligation to manufacture. But the offer reads: 'SThe company agrees that the maximum net profit which it shall make in the manu- facture and sale of fertilizer products shall not exceed per cent of the fair actual annual cost of the production thereof" All statutes regulating rates use the expression "cost of production" and there are settled rules for ascer- taining cost of production. But the of fer is even more certain than that. It be selected by the President and con firmed by the Senate out of a larger