The Birmingham age-herald., 1922-02-24
ENGSTRUM OFFER FOR COMPLETION
 OF PLANT GIVEN
Representatives of Farm Bu- reau Federation Enthusi- aSticaIIy Urge Accept
 ance of Ford Bid
By AssocIated Pres.

Washington, February 23-Con- sideration was given today by both the war department and the House military committee on the question of disposing of the government power and nitrate projects at Muscle Shoals to private enterprises for completion and operation.
 At the war department secre-
 tnry Weeks received the draft of
 the offer of Frederick Engstrum
 of Wilmington, \. C., for the
 and operation of the nitrate
 plants for the axntion of nitro
 gen from the air and production
 of fertilizer under a proposed 5O-
 year lease.
 At the capitol the military com nittee heard Gray Silver and R. r. Bower. Washington, representative and assistant. respectively, of the American Federation of Farm ru- reaus, who enthusiastically adyoea ted he proposal made by Henry Ford tor 100-year lease and the out Isht purchase of the Muscle Shoals projects. Bith denounced the offer 5ubmitted by the Alabama Power company for the purchase of the Warrior steam plant and 50-year lease of the remaining properties
 only two requests remained before the committee tonight for hearing on lLe Ford bid, including that of the Alabama Power company, whose spokesmen, headed by $. 1T. Dent, former chairman of the committee, are to appear tomorrow in explana- ton of the company's claim Tor op- tional rights on the Warrior prop erty in the event 1t is disposed of to private interests.
 The Muscle Shoals question also was discussed on the floor of the House today when Representative ,l ,liuddleston of Alabama declared that 99 per cent Of the people of Alabama urged acceptance of the Ford pro- posal He asserted they would rather see the Tennessee river go un- arnessed than have the Alabama Tower company take over the Muscle shoals property.
 The outstanding feature of the Engstrum offer were summarized in a statement addressed to Secretary Weeks which read in part as follows:
 Features of offer
 "The United States is not diyested ot the title to any of It's property, .hut retains the ownership and pre- serves assets of approximately $14l,- 000 00o.
 Returns from the investment on a basis of 100000 K. w. gross develop ment under my lease, will pay to the government approximately s3.50O 00V per year for 50 years, or 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 turned into the treasury at the op- ton of the government. This is II liberal return for investment of the government to produce the indicated power
 q propose to devote the entire power developments to the fixation of nitrogen from the air and manu facture of fertilizers and the main taining of an experimental labora- tory for the developments of inn proved methods and the reduction of cost of production of such nitrates.
 "The method proposed 10 finance by the sale of excess power, the manufacture Of nitrates is the only possible methods by which nitrates can be produced under present known methods and sold to the American farmer at price less than the Chilean products. The quantity Of nitrates and fertilizers annually pro- duced will be limited only by the amount of excess power sold and the price at which the nitrates may bs sold"
 No Construction Provision
 The proposal omitted any provision for the immediate construction of dam No. ., but said the operating cor poration Mir Engstrum would create would bind itself to build the dam at any time the government might de- sire during the 5O-year life of the lease. 1t was stipulated that the gov ernment should pay the cost plus per cent of the completion of the Wilson dam; the initial altera tions of nitrate plants 1 and and the com pletion of the locks at the Wilson dam and when it was required by the government the cost of constructing dam No. 3 and the locks and addi- tionaI projects on the same basis.
 Chairman Kahn announced tonight that Mir w. B.. Mayo, chief engineer for the Ford company, would be
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