The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-02-24
DISPOSAL OF MUSCLE SHOALS
GIVEN MORE CONSIDERATION
Secretary Weeks Gets Final
Draft of Frederick Eng
strum's Bid for Project.
ALABAMA POWER COMPANY
OFFER GETS DENOUNCED
Alabama Congressman Declares
That 80 Per Cent of Alabama
Is For Ford's Offer.
fpx The Associated Press)

WASHINGTON. Feb. 23.-Consid-
Grafton was given today by both the
war department and the house mill
tary committee on the question OF DIS
posing of the governments power and
nitrate projects at Muscle Shoals, Ala..
10 private enterprise for completion
and operation.
At the war department, Secretary
weeks received the final draft of the
offer made by Frederick z. Engstrum
OF wilmington, N. c., for completion
of the Wilson dam and operation OF
the nitrate plants for the fixation OF
nitrogen from the air and production
OF fertilizers under proposed so year
lease.
At the capitol. the military commit
tee heard Gray Silver and K. #. Bower,
washington representative and assis-
tant, respectively, of the American
Federation of Farm Bureaus, who en-
Enthusiastically advocated the proposal
made by Henry Ford for 100 year lease
and outright purchase Of the Muscle
Shoals projects, both denounced the
offer submitted by the Alabama Pow
er Company for purchase of the War
the remaining properties.
Only two requests remained before
the committee tonight for hearings on
the Ford bid including that of the
Alabama Power Company whose
spokesmen. headed by S. II. Dent for
mer chairman OF the committee. We're
scheduled to appear tomorrow in ex-
PLANTATION Of the company's claim for
optional rights on the Warrior prop
erty in the event it is disposed OF to
other private interests.
The Muscle Shoals question also
was discussed on the floor of the house
today when Representatives Huddle-
ston of Alabama, declared that 90 per
cent of the people of Alabama urged
acceptance Of the Ford proposal. He
asserted they would rather see the
Tennessee river go embarrassed than
have the Alabama Power Company
take over the Muscle Shoals property.
THE outstanding features of the
Engstrum offer were summarized in
a statement addressed to Secretary
Weeks which read, in part, as follows:
THE United States is not divested
of title to any of its property but re-
tains ownership and preserves assets
of approximately st41,OOo,Ooo.
Returns from investment on a basis
of 100000 XIV. gross development, un-
der my lease will pay to the govern
ment approximately $3.500,O00 per
year for so years. or a total at COM
pound interest at 4 per cent of APP
proximately s5s7, 1000, 900. which cash
will be used TO produce cheap nitrates
for fertilizer or will be turned into the
treasury at the option of the govern
ment. This is a liberal return for in
vestment Of the government TO pro-
duce the indicated power.
Il propose to devote the entire pow
er development to the ffxation of
nitrogen from the air and to the man
ufacture of fertilizers. including the
operation of a research plant for the
development of the improved methods
for the reduction of the cost OF pro-
ducing such nitrates.
THE method proposed to finance,
by the sale of excess power. the man.
ufacture OF nitrates is the only pos
sibly method by which nitrates can
be produced under present known
methods, and sold TO the American
farmer at a price less than the Chi
lean products The quantity OF nj
trates and fertilizers annually pro-
duced viii be limited only by the
amount OF excess power sold and the
price at which the nitrates may be
sold"