The Birmingham age-herald., 1922-01-29


 at Muscle Shoals at 10000 horse power. and the secondary 1o-months' power at S5,000 horse power. So we see that Assistant Engineer Vim and District Engineer Major Brown ap- proved 10000 primary horse power at dam No. g. Muscle Shoals, and s5,ooO secondary horse power. Mir. Little re- ports SLIT primary horse power from the Warrior river development, and makes no mention of secondary power.
 Assuming that the government could sell at the switchboard of the power house at dam No. 2, Muscle Shoals, 85.000 secondary horse power with a 70 per cent load factor, or, in other words, TO per cent of the total S5,O00 secondary power produced at mills per kilowatt hour ($13.07 per horse power year), at the switch board. this would give gross annual earning from this secondary power of s777,665. Deducting from this sum the operating cost of producing this secondary power, estimated at .63 or 1 mill per kilowatt hour (S4.12 per horse power year-and in this cost is included 10 per cent depreciation per annum Hon all machinery as well as 1 per cent depreciation on all structures both for navigation and for power purposes), leaves net in- come available for the payment of in- terest charges of $535,525 annually.
 VIII Pay Per Cent
 "The estimated total cost submit ted by MT. Waldo and checked by Assistant Engineer Winn and ap- proved by Major Brown amounts to $13,30O,000. The net annual income of 3532.525 will pay interest on this entire investment at the annual rate of per cent.
 T believe that this is a fair state ment of the earning power of the sec ondary power alone of the develop ment at dam No. 2, based on state ments and estimates approved by the United States engineers themselves, If this statement is approximately correct the government can get the use of 70,Oo0 primary power at dam No. 9 Muscle Shoals. for the produc- tion of air nitrogen and the manufac- ture of nitric acid at the cost of physical operation, and the farmers in time of peace can get the same for the manufacture of fertilizers.
 The comparison by the chief of engineers between the Warrior river and the Tennessee river at Muscle Shoals, in my opinion, is not fair ono.
 The cost of power at Muscle Shoals was taken from an estimate for an alternative investigation DOW CT dam at site No. 2 Document 1262, Sixty fourth Congress, first session, page 177), and this dam and it's es- timate contemplates a head of lie feet. General Black states that the primary power at this dam is 60,000 horse power, which would require c minimum flow of only 5000 second feet. The minimum of the dryest day in the dryest year in history-1904- is shown by the record to be 1000 secondary feet Document 20. Sixty third Congress, second division, pages 59-62).
 The estimate for the Warrior river is based on the regulated mean monthly flow for the wet period from 1905 to 1914. inclusive, excluded the dry years 1902, 1903 and 1904, al- though the data for these years was not obtainable.
 "The power estimated and reported at dam No. 2 on the Muscle Shoals bv the United States engineers is power that is accurately to be made avail able at the switchboard, while the power on the Warrior river reported by General Black Is potential power
 
 cept with machinery that Is 100 per cent efficient; and such machinery does not exist. In other words, the fact that the machinery is not 101 per cent efficient is conceded by the engineers in the case of Muscle Shoals and was overlooked by Gen eral Black in the case or the Wa-- rior.
 "The s16,0o0,Oo0 cost for dam No. 2 at Muscle Shoals. as reported by the engineers to the nitrate board. is the cost of a navigation power dam al site No. 2 of an alternative sugges- tion or proposal made by Major Bur gess with no intention of its adop- tion, and he did not recommend it's adoption unless land owners whose land would be overflowed by the building of dam No. 3, which dam Major Burgess did recommend. should charge the government exorbitant prices for these lands. Since Major Burgess made his report satisfactory prices have been secured on a ma Jority of these lands. and of cour ,c this alternative suggestion will never be carried out.
 For Navigation Structures
 "1t is well to remember that in the estimated cost of this alternativ dam 100 feet high at site No. 9 thers was included in the cost $4,495. .00O for navigation in no way connected with this dam itself, and therefore If this dam should be built thero would be chargeable to the construc- ton of this dam out of the s16,000, 900 total for the alternative plan. $11.5O5,000, and not $16.000, 900, as suggested by General Black. This reference to this alternative plan and its cost of s16,00O. 900 is merely explanatory, and, of course. it win be obvious that navigation structures not connected with the dam itself should not be charged into the cost of power on Muscle Shoals any more than on the Warrior river-and there was no such navigation charge in- cluded on the Warrior.
 Tn my comparison of these two propositions I have accepted the re- port made by Mir. Little as correct, and that. as he reports. the total cos: of this power plan will be s14.5ss. Ooo. with 57117 horse power. And I am willing to go as far as to accept Gen eral Blacks report to the nitrate board on the Black Warrior as fol lows:
 Cost of installation: About se1 per horse power for dam and substruc- lures of power houses only. Equip ment, including turbines, electrical generators, transmission lines, etc, depending upon the site selected for the nitrate plant itself add largely to this figure.
 These additional items of cost. by the way. MT. Little estimated at Se,- 16s.0o0. which would be 57,171 horse power. SIS per horse power. The amount added to the s91 for dams and substsrctures amounts to y20s per horse power.
 But conceding all this s6,7es.00o and not counting 1t In the cost of pow CT and accepting the cost suggest e d