The Union daily times. [volume] (Union, S.C.) 1918-current, 1922-02-24
DISCUSSION OVER
MUSCLE SHOALS

department and the house militar,
committee on the question of dispos.
ing of the governments power and nj.
trate projects at Muscle Shoals, Ala.
to private enterprise for completion
and operation.
At the war department Secretary
Weeks received the final draft of the
offer made by Frederick E. 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 produc-
ton Of fertilizers under a proposed
30 year lease. At the capitol the mill
tary committee heard Gray Silver and
r. F. Bower, Washington representa-
tive and assistant, respectively, of the
American Federation of Farm Bu-
reaus, who enthusiastically advocated
the proposal made by Henry Ford for
a 100-year lease and outright purchase
of the Muscle Shoals projects. Both
denounced the offer submitted by the
Alabama Power company for purchase
of the Warrior steam plant and 80
year lease Of the remaining proper
ties. Only two requests remained be-
fore the committee tonight for hear
ings on the Ford bid, including that of
the Alabama Power company, whose
spokesman, headed by S. H. Dent,
former chairman of the committee,
were scheduled to appear tomorrow in
explanation of the company's claim
for optional rights on the Warrior
property 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 Representative Huddles-
ton 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 prop
crty.
The outstanding features Of the
Engstrum offer were summarized in n
statement addressed to Secretary
Weeks which read, in part, as fol-
aonsf 81
"The United States is not divested
of title to any of its property, but
retains ownership and preserves as
sets of approximately $141 100000.
"Returns from investment on a
basis of 100000 k. m. gross develop
ment, under my lease, will pay to the
government approximately $3,50O,000
per year for so years, or a total at
compound interest at per cent of
approximately S537 100000 which
cash will be used to produce cheap
nitrates for fertilizer or will be turn
ed into the treasury at the option Of
the government. This is liberal re
turn for investment of the govern
ment to produce the indicated power.
"I propose to devote the entire
power development to the fixation Of
nitrogen from the air and to the
manufacture of fertilizers, including
the operation Of a research plant for
the development of the improved
methods for the reduction of the cost
of producing such nitrates.
"The method proposed to finance
by the sale of excess power, the manu-
facture of nitrates is the only pos
sible method by which nitrates can be
produced under present known
methods and sold to the American
farmer at prices less than the Chilean
product. The quantity of nitrates and
fertilizers annually produced will be
limited only by the amount of excess
power sold and the price at which the
nitrates may be Sold"