The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-01-11
BIDDING
AGAINST
HENRY FORD
Frederick Engstrum,
Of Wilmington, N.
c., Submits Propos-
al to Secretary OF
War Weeks F o r
Lease O f Muscle
Shoals

Shoals
Washington. Jan. 5.-Another
! offer for private lease and opera
ton of the governments nitrate
| and water power properties at
| Muscle Shoals. Ala, was received
today by Secretary Weeks OF the
war department 1t swas presented
by Marion Butler, former United
States senator from North Caro-
lima. acting as attorney for Fred
crick f. Engstrum. president OF
| the Newport Shiphuilding COM
pany Of Wilmington. \. c., and -was
accompanied by q lengthy state
ment explaining the offer in detail
| and comparing it with that submit
ted by Henry Ford on which con-
ferences will be heM next week
with Secretary Weeks.
The secretary was asked to give
Mr.. Engstrum hearing at his
| convenience for the purpose OF
making further explanation than
was attached to the offer when it
was delivered today. The. new
/. proposal IS the third offer received
by Mr.. Weeks, that Of c. c. Tink-
Ter of San Francisco being the see
ond. Negotiations between the
secretary and proponents Of the
various interests involved, it was
said. would proceed independently
until final selection was made
| and the whole transaction submit
tea to congress in a report by the
war secretary for. its ultimate de-
! cision.
Chief provisions Of Mr.. Eng
strum's bid, which guarantees COM
pletion of the dams and nitrate
plants, the latter being remodelled
| 10 .manufa cture that product ac-
eording to the most approved sys-
tenn for commercial products of
the kind. call for an expenditure
OF S36,000,000 by a corporation to
be formed. operation Of at least
one plant within a year after the
| property comes within. his posses
sion, and covers q period Of pro-
ductions for so years.
Another feature Of the offer in
wolves sale Of excess power de-
veloped and use Of the profits de-
rived in a wa. that is intended to
i reduce the selling price Of farti-
lizer to farmers and other buyers
| to a rate equal Or lower than that
at which the Chilean product could
! be sold for in this country. The
price would be fixed by the secre-
tary Of agriculture and the govern
ment would have two directors Sc
| lected to care for its interests in
the property affected after they
pass into possession of the cor
poration
The fun proposals and conditions
follow:
ITO take the property in its
present condition, to complete the
power stations and dams Nos. 2
and 3, and such other works rs
are REQUIRED in accordance with
such plans and specifications as
may be agreed upon by the power
company and the secretaries OF
war and agriculture, and to oper-
ate the nitrate plants IS .lereinaf-
ter specified.
ITO commence construction with
in SO days from the date Of pos
session and to comple,e construc-
tion within four years thereafter;
Ito complete at least % per
cent Of the construction work
during each fiscal year
ITO protect the government for
the full and faithful performance
Of the contract by giving a good
{ and sufficient surety bond, to be
approved by the government:
ITO market the excess power un-
der this contract at minimum
price of one mill per kilowatt hour;
ITO operate the nitratep lants.
the operation Of at least one plant
| 10 commence within one year
from the date Of possession, and to
j invest and eXpend annually in such
operation the net receipts. up to
and including one mill per kilo-
watt hour, from the sale Of the
excess power. over and above that
required to operate the property.
in addition to the gross receipts
from. the sale Of the nitrate pro-
ducts.
ITO sell the products of the nj
trate riants at the price and terms
TO bc fixed by the government.
TO operate a research depart
men! in cooperation with the gov
ernmcnt for the purpose OF de-
veloping the process Of liNation OF
atmospheric nitrogen. the cost OF
said department TO be charged TO
operating expenses.
''ro place the property. or any
part thereof, at the disposal of the
government in the event of wal
or any other public emergency
and during the period the plant il;
not operated by the company the
proceeds from the sale OF cXcrss
power TO be paid into the nitcd
! States treasury.
ITO construct for the govern
ment the locks or lifts to be used
for the purposes of navigation. the
additional cost thereof to be paid
/ Al, h, .
OF value. work and material rs