The Union daily times. [volume] (Union, S.C.) 1918-current, February 04, 1922, Image 3
Hem*y Ford'? Offer For
Mu&cln Shoal* Property
Transmitted to Congret*
Washington, Feb. 2.?Secretary of
War Weeks transmitted to congress
today ti?e offer and contract of Henry
Ford for the Muscle Shoals properties.
The secretary made no specific
recommendation as to acceptance 01
rejection, but pointed out several
changes that should be made if the offer
were accepted. He 9aid there
"were a number of advantages to the
government in the present proposals
that were not apparent in the first
offer." made by Mr. Ford and concluded
by giving it as his opinion that
"if Mr. Ford's proposal be not accepted,
it is my opinion that Dam No.
2 (Wilson dam) should be completed
by the government." /
"At this time," Secretary Weeks
wrote, "when there is a large amount
of unemployment, it is not without
importance to consider the advantages
to the nation of the employment of
the large amount of labor required in
undertaking this development."
"Inasmuch as I am without authority
in law to ncceDt Mr. Ford's offer .
or dispose of the property as a whole, '
either by sale or by lease," Secretary
"Weeks' letter said, "it is peculiarly the
province of congress to weigh the
considerations which will pass to the
respective parties to the proposed arrangement,
and to determine whether
or not the advantage to the government
in having Nitrate Plant No. 2
maintained in readiness for the manufacture
of explosives and in actual
production of fertilizer, together with
the improvement to navigation, is of
sufficient importance to justify the
proposed departure from the present
policy of the law in regard to dealing
with the waterpower resources of
the nation, andto warrant leasing to
Mr. Ford, government property for so
long a period at the rental proposed.
"If Mr. Ford's proposal be accepted
by congress, I suggest that there
should be certain modifications made
to safeguard the government's interest.
As heretofore stated, there
should be some assurance that the
contracts made by his proposed company
will be carried out.
"I also suggest that the cost of
acquiring the lands and flowage rights
necessary for Dam No. 3 should be
included in the sum norm whieh Mr
Ford is to pay 4 per cent interest, as C
rent.
"I believe it would be better policy ?
to limit the contract to a term of
fifty (50) years to conform to the es- ^
tablished policy of the federal govern- ^
rnent, as set out in the waterpower
act. 1
"While paragraphs 4 and 8 of the
present proposal provide that Mr.
Ford's company is to pay to the ^
United States annually the sum of *
jjj**-***' -$35,000 on Dam No. 7 and $20,000 on ?
Dam No. 3 for repairs, maintenance and
operation of the dams, gates and
locks, congress may well consider ?
whether it would be more desirable to
'* "" hove Mr. Ford maintain the property 0
and omit these payments.
"If Mr. Ford's proposal be not ac- *
cepted it is my opinion that Dam No.
2 (Wilson dam) should be completed ,
by the government and that the power
requirements for commercial purposes,
the benefits to navigation, as ^
well as the possible needs of the govcrnwent
would warrant this expenditure.
If this were done the govern- 1
ment may itself undertake to sell the v
product to the best advantage * * * 1
"At this time when there is a large
amount of unemployment it is not e
without importance to consider the [
advantage to the nation of the em- 1
ployment of the large amount of la- 1
Kah vAAinv*nrl i r? un/lnvtnbinii' ikio /I II !
velopment. I, therefore, urge that
congress give early consideration to
this matter not only to settle a con
troverted question, but to furnish employment
on a large scale."
With the exhibits, engineers' opinions,
the Ford contract and correspondence
between Mr. Ford and the
war department, the documents sent
to congress made upwards of 15,000
words. Mr. Weeks' letter of transmittal
went into the history of the
negotiations exhaustively. "On July
8, 1921," he wrote, "in consequence of
some negotiations with the chief of
engineers, United States army, Mr.
Henry Ford presented a proposal in
writing, in which he offered a fixed
Thin People
' OTH Increase weight 10 to 25 pouudspsr
HlntM month, Byetmpl* guaranteed, sale,
jfi#,' I \n reliable treatment, Argo-Fhospliate
mfj n will lnorsaae your weight with good
tatf i jTa solid stay-there flesh end muscle.
cFJr Write today lor FRBB sample.
Fj ' "t Enclose stamp to Amsrfoan Drug
'?'i^ Bales Co,, Alaldea 48, Mass,
TTATR GROWER
, MiLnn*0nrA Rara
1 BEMKDr grow* hair
U.-1 "'.I quickly, removes dead
'!>, W-> ' runi awMM fray or
j-'* a. faded hair, itopa falling
tjy^ 1jJ<v Y"S^\ *nd make# It beautiful.
^ 7Go ma 11.29 n bottle
bt&fred LouIm Co., Maiden id, M-ae.
-W??M Hair Remover
H * A smooth hairless skin for wwf
K K'.t>Mw I woman may lie had with the aid of S
Bi J little MKDOL,paste, wadn by mlsfof
Sk V'T* /? * M*llc>4 w'th water, and easily
fv\^ - /. /Jj to the hairs not wanted and In a JtOjr
Ijri/' // / AW you can wash the balre risht off.
rnF"~.,v. tfjf dledol is sold hafiOo and >1.00 b ottlse.
7 ' American Proprietary Byndloatn,
Maiden 48. Mmm.
' aendaUp"
| MjiMTOL I
i| and tlmy are gone I
Gp?S ARealBastDereS^ar
-'Tii Discovered at lest,
f J Xy ?i Ronton* applied nlfht and morning
ii l \ works wooden when need In eon*
% \ L iwrtl: n wfthr.KreiaTonollneTsblota.
6 Uotetot* Is pnt up in fiOo, ft AO and
I tm Jan. American Fiopilseesy
* 11 byudlcete. Maiden 40, Mans
Hhl^ v'
annual rental of $1,200,000 for Dam
No. 2 and its power plant and ap-'
purtances, installation of equipment,
:npable o$ producing %100,000 horsepower,
and a rental of $200,000 to be
paid annually during the first six
^ears of the lease. On proposed Dpm
No. 3 he offered a fixed annual rental
A $480,000, commencing three years
after 80,000 horsepower should be de-|
yeloped, and $100,000 per annum for
the first three years of the lease
period. Provision was made for certain
upkeep charges and payments to
be made townrd a sinking fund estimated
to be sufficient to nmortize approximately
$48,000,000 of the cost of
the dams. Under this proposal the
United States was to undertake the
;ompletion of Dam No. 2 nr.d the con-1
jtruction of Dam No. 3. This offer
ivas conditioned upon the United
States selling to Mr. Ford Nitratej
Plants No. 1 and No. 2, the Waco
luarry and its equipment, and the
G!or?as-Wnrrior steam plant and
transmission line and appurtenances, j
ill for the price of $5,0.00,000.
"At my suggestion, Mr. Ford placed:
n one instrument his offer as modi-1
led, which was signed by him on Jan.;
55, 1922, and delivered to nic on Jan.;
57, and which I have the honor to |
transmit herewith for such action as.
congress may deem appropriate."
"In brief, Mr. Ford offers to undertake
the completion of Dam No. 2 and)
the construction of Dam No. 3, ac-;
lording to the government's nlan. for
vhich we shall be reimbursed the nc;ual
cost, and to lease the dams and
power plants at an annual rental
?quivalent to 4 per cent of the cost to!
die government of completing Dam
Mo. 2 and constructing Dam No. 3
(exclusive of the cost of acquiring!
ands and flowage rights necessary I
'or Dam No. 3). The rentals of 4;
ier cent are to commense, rcspectivey,
in six years after Dam No. 2 has i
jeen completed to the point where
jquipment for 100,000 horsepower is
nstalled and ready for service, and
diree years after the equipment to
levelop 80,000 horsepower is installed
ind ready for service at Dam No. 3.
!n the meantime, during the six-year
ind three-year periods, respectively,
e offers to pay, upon Dam No. 2 an
innual rental of $200,000 and on Dam
Mo. 3, $160,000. His ffeor places upon
he United States the responsibility
or repair and maintenance of the two
lams other than the power houses,
vhich power houses and electrical
quipment he agrees to maintain at
lis own expense in efficient operating
ondition. As compensation to the
Jnited States for the repair and up:eep
of Dam No. 2 and locks, he offers
o pay the sum of $35,000 annually,
nd of Dam No. 3 and lock the sum
f $20,000 annually. He also agrees
o furnish electricity for operating the ,
acks at each of these dams without
harge to the government and in addiion
he agrees to pay the suifi ot
23,373 semi-annually for the purpose
f building up a sinking,fund to reurn
to the United States at the end
f the lease period, a sum of money
vhich he estimates if invested at 4
ier cent will be approximately $40,* |
100,000. As a condition of this offer
te asks that the United States sell to
lim Nitrate Plants Nos. I and 2, the
Vaco quarry, and the Gorgas-Warrior
ucaiit piniu, wii.ii uu aii^ui icuuuct's
or the sum of $5,000,000, payable $1,100,000
do\^n and the balance in an-j
inal installments of $1,000,000 each
rith five per cent interest on deferred
layments. As a further consideration
o the government he agrees to opirato
Nitrate Plant No. 2 at the approximate
present annual capacity of |
ts machinery and equipment in the
production of nitrogen and other ferilizer
compounds throughout the
ease period, and to maintain it in its
present state of readiness, or its'
iquivalent, for immediate operation in |
he manufacture of materials ncces-!
;ary in time of war for the production i
>f explosives. He further agrees that
.ho fertilizer produced at Nitrate
rMant No. 2 shall not be sold at a
profit in excess of 8 per cent of the
ictual annual cost of production
hereof and to turn over to the United
?tates Nitrate Plant No. 2 whenever!
t shall be required for the nationali
lefense. He likewise asks for a pref-'
irence in opportunity to purchase or!
ease the property at the end of the'
ease period und for the right for a!
of o f nd 4Ko *?UU I
?VM uvb niuvvu, t-Vf UC OUJ'JMICU Willi j
dectric power at reasonable rates in
in amount equal to his average coniumption
during the previous ten
/ears, in case the plant is operated
ind his company does not purchase or
ease it. He also states that his proaosal
must be accepted as a whole and
lot in part. * * *
"There are a number of advantages'
to the government in the present pro-1
posal that were not apparent in the!
first offer. Mr. Ford's original proposal
of July 8, 1921, contained two
paragraphs dealing with the matter
>f amortization of the cost of conduction
of the two dams. In the present
proposal the subjects of amortisation
is covered in one paragraph,
Mo. 10, which reads as follows:
"For the purpose of enabling the
arovernment to create and provide a
linking fund to retire the cost of Dam
Mo. 3 at the end of one hundred (100)
/ears, the company will, at the beginilng
of the fourth (4th) year of the
lease period, and. semi-annually thereifter
for the remaining term of the
lease, pay to the United States government
the sum of three hundred and
five dollars ($3,505) nnd for the purpose
of enabling the government to
ireate and provide a sinking fund to
retire the cost of Dam No. 2 at the
snd of one hundred (100) years, the
company will at the beginning of the
teventh (7th) year of tho lease period
tnd semi-annually thereafter for the
remaining term of the lease pay to
Jie United States government the sum
of nineteen thousand eight hundred
and stxty^etght dollars ($19,888)."
The provision for amortization in
the last proposal is very much more
favorable to the United States than it
was in the offer of July 8, 1921. Should
the dams be constructed at a cost of
not exceed $42,000,000, as estimated
by Mr. Ford's engineers, there would
be left to apply on the investment of
the government heretofore mode,
whatever the amortization payments
would produce in excess of the $42,000,000.
If the amortization fund
should bo invested continuously at 4
per cent there would be at least $7,000,000
to be thus applied, but should
it be invested at a greater rate of interest
the amount would be increased
as shownas shown by the table.
The provision for renewal of the
lease which was contained in the proposal
of July 8, 1921; was numbered
11. nnd reads as follows:
"At any time prior to the expiration
of said lease period of one* hundred
(100) years, the company shall have
the right to negotiate with the government
for a renewal of the leases
for the two above dams, their power
houses, etc."
Tho effect of this provision was to
bind the United States to a renewal
of the lease for one hundred (100)
years on such terms as should be detcrmincd
to be just by a board of arbitration.
Under the new proposal the
renewal clause is contained in paragraph
17, which reads as follows:
"In order that said company may be
supplied with electric power and the
farmers with fertilizers after the
termination of the said one hundred
(100) year leases, should the United
States elect not to operate said power
plants, but determine to lease or dispose
of same, the company shall have
the preferred right to negotiate with
the United States for such lease or
purchase and upon such terms as may
then be agreed upon. * * *
TVlio r*n rn/???0 Vkimrl
* t??o pui 1 uj/u uvea nut uiiiu uic
United States to a renewal of the
lease and is in no way an attempt to
control the policy of congress beyond
the one-hundred-year period of the
present lease, except to preserve to
Mr. Ford's company "the preferred
right to negotiate with the United
States for such lease or purchase and
upon such terms as may then be
agreed upon."
There should be some assurance
that the contracts made by the proposed
company will be carried out or
some penalty imposed for failure to
perform.
In the event Mr. Ford's proposal is
accepted, the government must make
new appropriations amounting to $40,000,000
to $50,000,000, of which Mr.
Ford will have the benefit for approximately
100 years at 4 per cent. The
company is, of course, bound to keep
Nitrate Plant No. 2 in a condition to
produce explosive which, as a matter
of preparedness, fs of great value to
the government. Nevertheless, Mr.
Fordjs offering but $5,000,000 for the
title to the two nitrate plants, the
Waco qunrry, the Gorga%-Warrior
steam plant, transmission lines and
appurtenances. That you may the
better understand the value of the
property for which Mr. Ford is offering
this $5,000,000, I am attaching to
this letter, a brief statement prepared
by the chief of ordance, showing
the cost and estimated salvage
value of these properties. From the
table contained in this statement it
will be seen that these properties cost
the United States approximately $85,000,000
and that as scrap they are
estimated to he worth $8,812,000.
However, the last column of the ta- .
ble in Exhibit "A" indicates that the
chief of ordnance believes the war department
can dispose of the property
for $10,272,000. Mr. Ford is bound
by his proposal to operate Nitrate
Plant No. 2, but there is no legal obstable
to prevent his disposing of the
other properties to which he gets title.
Should he be able to obtain what the
chief of ordnance estimates that the
government can secure for the various
items, namely, $3,000,000 for the Warror
plants, which have an installation
of 40,000 horsepower, and $000,000
for Nitrate Plant No. 1 and dispose
of the Warrior Muscle Shoals
transmission line, as a transmission
line and not as scrap, for $67.r?.000,
and should he obtain $357,000 for the
Waco quarry, he would have left the
Nitrate Plant No. 2 with its 80,000
horsepower steam plant at a co.*t to
him of less than $400,000. The inSTOMACH
TROUBLES
badiaaa Lady Had Sa fitting Lflu
Indigestion Until Ska Tank
Black-Draught, Tka
Got AO Right.
Seymour, lad.?"Borne time age )
had a sick spell, something like Indi
section," write* Mr*. Clara Peacock, ol
Route I, this plaoe. "I would get ear)
alck at the stomach, and spit or remit
especially la the mornings.
"Then 1 began the use of Thedford'i
Black-Draught, after I had tried othei
medicine*. The Black-Draught re
11 eved me more than anything that 1
took, and I got all right.
"1 haven't found anything hettet
than Black-Draught when sufferlni
from trouble caused by oonsUpatlon
It la easy and sure. Can be taken It
small dosee or large aa the case calli
for."
When you hare sick stomach. Indi
gestion, headache, constipation, o>
other disagreeable symptoms, tak<
Black-Draught to help keep yeUi
system free from poison.
Thedford'i Blade-Draught Is mad<
from purely regetable Ingredients
acts In a gentle, natural way, and ha
no bad after-effects. It may be eafel:
taken by young or old.
Oet a package of Black-Draught to
lay. Insist on the genuine, Thedford'i
At your druggist's. NO-14
fWaK
^H||i?
terest on the proceeds 9* such possi- <
bio s^?? yfr^i-^^o^ng; ip a very large ,
frtttn durfoy?h> tW pwposbo
contract. The present?? reviemue from
rental of the power plaat at Nitrate
Plant No. 2 is a minimum of $120,000
peT annum with a possibility that, in
event of operation, it may run to
$2(50,000. The cost of maintenance of
Nitrate Plant No. 2 was approximately
$200,000 during the fiscal year
1921. The total horsepower developed
by the three steam plants, to which
Mr. Ford will get title, is 125,000,
which practically doubles the all-season,
or primary horsepower to be developed
at Dam No. 2 (approximately
500,000 of the horsepower that is to
be developed at Dam No. 2 will not
be available 365 days in the year).
Bulgaria Tottering
Under Burden of Debt
Sofia, Feb. 3.?Bulgaria is tottering
under a burden of debt and idemnities
which its financiers say will
take several generations to liquidate.
Under the peace treaty the smallest
of the belligerent nations is required
to pay the Allies 2,225,000,000 francs
gold ($450,000,000.).
Converted into Bulgarian francs
(levns) at the current rate of exchange,
this amounts to the staggering
total of 67,000,000,000 levas. If
to this sum is added the country's external
and internal debt of 40,000,000,000
levas, a total of 107,000,000,000
levas is reached. (Nominally a
Bulgarian leva would be worth about
19 cents.)
Nobody knows, even the Bulgars
themselves, how this colossal sum
can be paid without wrecking the
country and exhausting its resources.
Under the Neuilly agreement the
Bulgarians were to pay their first instalment
of the $450,000,000 idemnity
in 1919, but up to the present they
have lapsed in three instalments.
Bulgarian government officials say
they can make the state solvent and
pay all its obligations if the powers
will waive the indemnity payments
for a reasonable period^tof time. They
insist they can make little progress
so long as the Reparations Commission
holds the indemnity demand over
their heads like Damocles' sword.
The country's total outstanding pa
per money amounts to 3,260,000,000
levas, only one-third of which is covered
by gold reserve.
An encouraging feature in Bulgaria's
otherwise apparently hopeless
r . i i i_ A _
ununciai anu economic, suuanon is
the steady increase in her exports,
which for 1921 were in the proportion
of 3 to 2 1-2 to her imports.
With the object of stimulating exports
and imports the government is
planning the establishment of an international
bank, cmposed in part of
foreign capital, with branches or representatives
throughout the world.
An effort will be made to interest
American hankers in the institution.
An open shop fight has been instituted
by shoe manufacturers of Vancouver,
B. C.
r
\
I PALMET
83 Gives quicker results I
p Seed Meal and costs less.
B Guaranteed Anal
, Ammonia
A. P. A
a If your local Agent cai
|| you communicate with us
I A. F. PRINGLE, INC..
A. Wonderful Cure
|
I had boon troubled for several I
months with a severe skin trouble J
which had been pronounced eczema,
vfcich covered the greater part of my
body.
In a few weeks' time, using Storm's j
Lotion as directed, the trouble hn3
disappeared. Your lotion gave immediate
relief with the first application,
and cured the trouble.
a v VI m III |\ UIII ^nuriui nu unw ,
ing the lotion and shall recommend it
to any sufferer of skin trouble.
B. W. Gregory.
Buffalo, S. C., Route 1.
Storm's Lotion, price $1,00, atj.
Storm's Drug Store. 1269-tr
PHONE 167
We sterilize all garments
with hot dry steam. We j
guarantee not to slick or
scorch any thing. Special attention
given to Parcel Post, j
I certainly appreciate it as
much or more than anyone j
else for a trial from you.
We call and deliver your!
pressing anywhere. When1
you have a hurry-up job we
are at your service.
Hames Pressing and
R*nair fsfinn
??|?HU VUW|f?
Nicholnon Bank Building.
PHONE 167
Agent for two dye houses,
largest in the South. Phone1
167 and Dust-Proof Motorcycle
will call.
One week of manual and agrieul- ]
tural labor is in future to be included 1
in the year's work of every Bulgarian ]
schools for boys and girls alike. 1
--I-S-T
Renew
Subscrip
TODAY!
Only $4
If you d<
you ma"5
more lat
The U
n.!i i
uaiiy i
TO FISH TA
than Cotton
lysis
v. (0)<Mk0,
tinot supply I [] 1''0^ \
direct. |
<
IPIgm Eggs Fr<
and real money-makers
makes oarly layers of ;
produces fast growth In young chicks. 2 1-1
We carrv a complete line of Caro-Vet Sta
Hops and Poultry. We will gladly refund y
results from the use of any Caro-Vet reined
AUTHORIZED DEALERS
.1 E. Fowler Colon. S. C
Storms Drug Store ' nlon. S <"
I Moldev Jeter t'nlon S t'
East Side Drug Co Colon, S C
( lymph's Pharmacy I nlon. s c
Fowler's Pharmacy Monarch
.1 It Ilcdciiltough, Koute t . I nioii, S t ?
TO THE PATRONS 0
Now that your children's eyes 1
tor, remember that if he does not i
work, that 1 am prepared to fit gla
attention to this work and guaranty
times to make good my guarantee.
Let me name to you some of y<
satisfied users of my glasa^
Yours For Better Eye
F. C. E
8TATH LICENSEE
J- A. Sawyer ? A. G. Kennedy
Sawyer & Kennedy ,
Attorneys and Counsellors at Law '
No. 33 Main Street i
Union, South Carolina
Engaged in the general practice of
law. We no longer repreaent the
Union-BuiTaio Mills Co., the Union
Manufacturing A Power Co., or the 1
Union A GKnn Springs Railroad Co. 1
-F-N j
'our I
?tion I
[ I
a Year I
ilay I
t pay I
er I
fnion
r? I
nmes |
kNKAGE I
0 .iP I
bfe- - ml- i
|3
I
:harleston, s. c. I
bhhhnhnnn#
om Every Hen
for a hull or hen. You can make layers
out of every solltury hen >ou own.
Egg Producer *
tonic, develops the egR-producing niRsns;
Voiiiir indicts; keeps poultry healthy sod
I lli. hiiX, 80 cents
ndard Iteniedies for Horses, Mules. Tattle.
Olir money If you fall to Ret satisfactory
y.
IN UNION COUNTY # !
11. T IIlRRlns ltuff. lo. s I t
Keller's UrttK Store HiitT.il. < T
K 15. Ilrnwu Hitff le. ,s f :
I K M inter . Setl.il . > <
Miru.il Supply To Carlisle. S f I
T.irlisle T.isli Co c r'is , S T I
MitrrolTa I'harni.icv . . .loriesvTic. s T 1
lotiesvllle l?rnR To ... lonesv ille. s f I
.
, . . , .. ,it "
F UNION SCHOOLS: I
lave been examined by your doe- |
Ulnae a specialty ol this kind ef /
Hses. I give my whole time and ?
v satisfaction. 1 am kara at all
our neighbors or friends wfce are I
:s For the Children, |
> U K E '
i OPTOMBRIST.
' ? *' I |l ll' ,1 "II"
' '
Talking by telephone from a moving
trolley car with a point moro
than three miles distant, ?c.ently took
|)!ace on the lines of a New York electric
railway eompany. This feat was
accomplished by using the trolley wire
iis a carrier of another current which
transmitted he message.
/
The United States appears to be
placing chief stress on the "no" in Genoa.?Indianapolis
Star.