Right in my backyard.....Literally! 1941 Hiawatha (shelby Flying Cloud )

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So, not too long ago, I was walking in my backyard, and I spotted this leaning beside a fallen in shed. So I pulled it out of the weeds to get a better look.
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From what I have found, it is a 1941 (approx.) Hiawatha, built by Shelby, and sold at Gamble's Department stores. It looks identical to the Shelby "Flying Cloud" , and most likely a simple re-badging of that model. It still has the badge, and it is the "Pre-War" It is quite rusty, as you can tell, and there is a few holes by the rear chain stay.

I have plans to fix it up, and I have stripped it down since I took the pic. One question I have is, is this worth Doing? is the frame ok to use, or should I find another frame?
 
The frame is really the only concern for me, well, as far as if it can be saved. The fenders, chain guard, and handlebars are solid overall, only some pitting. The worst spots on the bike are the tank, and the frame has a few holes towards the rear. Elsewhere looks solid, no through rust. I was initially planning on building it as a motorized bike, but some guys on another forum were telling me that even un-rusted Shelbys would crack when motorized.
 
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Some of the holes, if small and there's not a lot of surrounding deep rust, can be filled in.

I rode a couple bikes my brother motorized with gas engines. They vibrated quite a bit. That might cause a crack in any frame, not just a 40's frame. I would just keep it a human powered bike. If the frame isn't rusted badly, it should hold up well. The fenders and chain guard don't look banged up or rusted through. That's a good sign, as the stamped sheet metal usually rusts through before the frame tubes.

Plenty of ways to build that frame up:
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