The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-03-08
ENGSTpUM BID
FOR MUSCLE
SHOALS
Former Senator Butler OF
North Carolina Explains
Proposal to Senate Com
mittee

washington, March (By the
Associated Press). George w.
Goethals, former major general IN
the army and builder Of the Pana-
ma canal. will take personal charge
OF the development of the govern
ment- made projects at Muscle
Shoals in the event the offer OF
Frederick E. Engstrum Of North
Caroline, ship builder and engineer,
Tor lease and completion of the
Alabama properties is accepted by
congress, it was announced today.
Mr.. Goethals already has agreed. 1t
was added. to accept the task OF
completing the great dam at Mus
Gle Shoals, and other projects for
Mr.. Engstrun.
The announcement Of the agree
ment between Mr.. Engstrum and
Mr.. Goethals was made by Marion
Butler. former senator from North
Carolina, in testimony given the
house military committee on the
proposal which was under consid-
Grafton as a competitor to those
submitted by Henry Ford and the
Alabama Power company.
The committee devoted Doth scs-
sions today to an investigation of
the Enssirum; offer. receiving Mr..
Ensstrum first for brief intro
,duction of his bid and later exam
ming Mr.. Butler who appeared az
legal adviser for the North Caro-
linianL Mr.. Butler said nitrate and
fertilizer production. viewed in the
sense OF their relation to the ma
tional defense. was the prime OBJ
ject of the offer he spoke for. al
though hydro-electric development
would not be neglected.
While the former senator did not
refer to the Ford offer by name he
argued strongly against congress
sional action which would permit
the principal water power project
of the South to be controlled by a
private concern.
Nitrate and fertilizer production
at the shoals. Mr.. Butler said,
could be made national asset.
permitting cheap soil foods for the
farmers and reduced prices for
toodstuffs for the consumers.
In reply to questions by Repre-
sentative Stoll Of South Carolina,
Mr.. Butler said the corporation to
be created under the Ensstrum
plan would capitalize itself un-
I'll it got to be going concern"
and was willing to offer a surety
bond of any size the government
suggested to assure the proper
execution Of the offer. Both Mr..
Butler and Mr.. EnSstrum would be
stated. in addition to two others
who would be designated by the
secretaries of war and agriculture.
The witness said the remaining
three directors would rot be named
at the present time, although he
denied that James +. Duke. Of
North Carolina was associated eth
er directly or indirectly with the
corporation. Reports that Mr..
Duke was allied with Mr.. Eng
strum were cmphatically denied.
The only financial considera-
ton the proposed corporation would
receive in return for it's work Of de-
veiopins the properties. it WAS cX-
planned. would be from the sale of
power not required to operate the
nitrate plants. from the sale of
fertilizers and nitratcs. and the ,
per cent. fec it would receive from
the government on tho cost OF
completing the Wilson dam aud
other construction jobs.
Mr.. Butler showed that all OYER
head expenses. including the en-
ploymcnt Of engineers and other
operating costs, would be paid by
the corporation out of the > per
! cent. fee and would not be charged
against the government aS part of
the construction costs.
1t was Chairman kahn's opin-
ion that it would require the com
mittce at least Il week. working in
executive sessions continually. ~
draft report to the house on
tn" Muscle Shoals question