South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-02-24
WEEKS RECEIVES
THIRD PROPOSAL
FOR POWER site
Offer of Frederick Engstrum
for Muscle Shoals Is
Presented.
L. 5. TO RETAIN TITLE
Alabama Representative Urges
Acceptance of Ford Offer
IN House.

WASHINGTON. Feb. 23.-Consid-
Grafton was given Thursday by both
the war department and the house
military committee 20 the question
os disposing Of the governments
power and nitrate projects at Muscle
Shoals to private enterprises for
completion and operation.
secy Weeks received the Anal
draft of the offer made by Frederick
r. Engstrum OF Wilmington. y. c..
for completion of the Wilson dam
and operation Of the nitrate plants
for the fxation of nitrogen from the
air and production of fertilizers
under a proposed 5O-year lease.
The military committee heard Gray
Silver and r. r. Bower Washington
representative and assistant, respect
iveIy. Of the American Federation OF
Farm Bureaus. who enthusiastically
advocated the proposal made by
Henry Ford for 1OO-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 5O-year
lease Of the remaining properties
Muscle Shoals also was discu ssed
in the house Thursday when Rep.
HuddlestOn of Alabama declared that
% per cent Of the people Of Alabama
urged acceptance OF the Ford pro-
posal He asserted they would
rather see the Tennessee river go
embarrassed than have the Alabama
Power Co. take over the property.
Engstrum on
The features or the Engstrum Of
fer were summarized IN statement
addressed to Sec'y Weeks which
read in part as follows:
The United States is not Invested
OF title 70 any Of its property. but
retains ownership and preserves as
sets OF approximately Sal, 100000.
Returns from investment on a
basis OF 100000 K W. gross devel-
opment under my lease will pay
10 the government approximately
$3,5OO.O0 per year for fifty years, or
a total at compound interest at 4
per cent Of approximately S537, 00O,-
600, which cash Will be used TO pro-
duce cheap nitrates for fertilizer or
VIII be turned into the treasury at
the option OF the government. This
Il a liberal return for investment Of
the government to produce the indi-
caued power.
Z propose TO devote the entire
power development TO the flxation 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
or production OF such nitrates.
The method proposed 10 finance
by the sale OF excess power. the
manufacture OF nitrates is the only
possible method by which nitrates
can be produced under present
known methods and sold 10 the
American farmer at price less than
the Chilean products. The quantity
or 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 cold"
The proposal omitted any pro
vision Eor the inlm ediate conStru ction
OF dam number three.
Chairman Kahn announced Thurs
day night that W. B. Mayo. chief en-
g.neer at the Ford company. would
be heard after the Onclusion OF the
statements TO be made by the Ala
bau1a Power Co. and his testimony
would end the com nnittee's investiga-
ton for the present az least, OF the
Ford proposal