The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-01-06
Promise to Remodel Properties
and Manufacture. Products
by Latest Methods.
CALLS FOR EXPENDITURE
OF THIRTY-S MILLION
Offer the Sale of Excess Power
Developed and Reduction
of Fertilizer Prices.
tey The AssoeIated Pressl

WASHINGTON, Jan. 5.-Another
offer for private lease and operation
OF the governments nitrate and water
power properties at Muscle Shoals,
Ala, was received by Secretary Weeks
OF the war department. 1t was pre-
sented by Marion Butler, former Unit
ed States senator from North Carolina,
acting as attorney for Frederick u.
Engstrum, president OF the Newport
Shipbuilding company of Wilmington,
N. c., and was accompanied by a
lengthy statement explaining the Of
fer in details and comparing it with
that submitted by Henry Ford on
which conferences will be held next
week with Secretary Weeks.
The secretary was asked to give
Mr.. Engstrum hearing at his con-
venience for the purpose of making
further explanations than was at
tached to the offer when 1t was deliv-
cred today. The new proposal is the
third offer received by Mr.. Weeks,
that of c. C. Tinker of San Francisco
being the second. Negotiations be-
tween the secretary and proponents of
the various interests involved, II was
said, would proceed Independently
the whole transaction submitted to
congress in a report by the war sec
retary for its ultimate decision.
Chief provisions Of Mr.. Engstrum's s
bid, which guarantees completion of
the dam and nitrate plants, the latter
being remodelled to manufacture that
product according to the most ap-
proved system for commercial prod
ucts of the kind, call for an expendi-
ture of s36,000,0oo by a corporation to
be formed, operation of at least one
plant within a year after the property
comes within his possession, and COW
ers a contract period of production for
80 years.
Another feature OF the offer involves
sale of excess power developed and
use of the profits derived in a way
that is intended to reduce the selling
price OF fertilizer to farmers and other
buyers to n rate equal or lower than
that at which the Chilean product
could be sold in iris country. The
price would be fixed by the secretary
OF agriculture and the government
would have two directors selected to
care for it's interests in the properties
affected after they pass into possess
sion Of the corporation.
The full proposals and conditions
fellow:
"To take the property in it's present
condition. to complete the power sta
tions and dams No. 2 and s. to such
other works as are required in ac-
cordance with such plans and speci-
fications as may be agreed upon by
the power company and the secre-
taries OF war and agriculture, and to
operate the nitrate plants as herein
after specified.
"To commence construction within
so days from the date of possession,
and to complete construction within
,fouTa years thereafter.
"To complete at least 25 per cent
Of the construction work during each
fiscal year;
ITO protect the government for the
fuu and faithful performance of the
contract by giving n good and suffi-
cient surety bond, TO be approved by
the government;
ITO market the excess power under
this contract at a minimum price of
1 mill per kilowatt hour
ITO operate the nitrate plants, the
operation Of at least one plant to COM
mence within one year from the date
OF possession, and TO invest and ex-
pend annually in such operation the
net receipts, up to and including l
mill per kilowatt hour. from the sale
'or the excess power, over and above
that required TO operate the property,
In addition 10 the gross receipts from
the sale OF the nitrate products
ITO sell the products of the nitrate
plants at the price and terms to be
fixed by the government
To operate a research department
in cooperation with the government
for the purpose OF developing the
processes OF fixation of atmospheric
nitrogen, the cost of said department
% be charged to operating expense.
ITO place the property, or any part
thereof, at the disposal of the gov
ernment in the event OF war or any
other public emergency, and during
the period the plant is not operated
by the company the proceeds from
the sale OF excess power to be paid into
the United States treasury.
"To construct for the government
ne locks or lifts to be used for the
purposes OF navigation. the additional
cost thereof to be paid BY the govern !
Continued on Page y