The Washington times., 1924-12-08
NORRIS 0
OPPOSE
SCHEME
(continued from FIrst Page.l

locks; also as { whether the rental
to lessee would pc based on the
cost OF the dam, incTuding the cost
0e the locks or exclusive thereof.
Therefore, the question arises as
to whether the contract ii conteni.
plated with the dam completed, and
eight units installed, or not, and
furthermore whether the rental
charge shall begin when the eight
units are completed or on the first
Nof July, 1926.
''(5). The time limit In which the
Secretary OF War may lease the
plant is so short that 1t is imprac'
ticable, IL not impossible, to con-
summate such lease.
60 No provision is made for the
guarantee Of bonds by the United
States, also, the requirement Of the
bill that the plant shall close
down at the end OF four years u
the corporation Is not successful,
in earning the required interest on
the bonds would tend to make the
bonds practically worthless.
Makes Bonds Worthless.
Other portions Of the bill place
such obligations upon the bond
holders as to make the bonds Of
doubtful or no value unless guar
anteed by the United States
Among these is the requirement
that the plant be operated for the
perpetual production Of nitrogen.
The question also arises in my
mind whether the limitations on
the disposal Of power are not such
as to decrease the value Of the
income from that source.
Another question which arises
IN my mind Is what is meant in
forming the corporation by ap-
pointment Of not more than two
officers Of the War Department.
Does that mean officers Of the
army or otherwise? It il not clear.
1y understood.
''(O Under Section 8, is it in.
tended that IL storage reservoirs
dam No. 3. and other power dams
are later constructed in the upper
Tennessee, the lessee should pay
a proportionate share Of such con
struction costs In return for the
increased primary power which be
would obtain thereby.
Barred ~ Patents.
Summing up the two alternatives
proposed in the Underwood bill
first, that the property should be
leased to private industry, and
second. failing q lease, the Govern
ment should set up a corporation,
Weeks said:
Under the first provision, g
lessee would be without power to
operate the plant under the
Cyananid processes because Of legal
ana equitable restraint which would
be undoubtedly placed in his way
by the owner Of the patents, the
American Cyanamid Company.
Under the second alternative,
the corporation would have the
same power and right to operate
the Muscle Shoals projct as the
United States, except as pointed out
above; that is, 1t would not have
power to appropriate a license un.
der the MIGRATING and oiling pat,
ents owned by the American
Cyanamid Company, which is neces
sary In the production Of CONNER
cial fertilizer, and would, therefore
be subject to the legal and equita,
BILE restraint and other remedies
which the American Cyananli6
Company would undoubtedly exer
cise."
More Politics, Says Norris.
Even were Weeks recommends
ton accepted by the Senate, he
would not support the underwood
plan, Senator Norris, Republican
Of Nebraska. author of the straight
out government ownership plar
for Muscle Shoals. announced.
ST think Secretary Weeks sug
gestions are good" he said. ''but
even If they were agreed to in tho
Senate l would not support the
bill because the Underwood plar
puts the whole Muscle Shoals cues
ton into politics"
Meantime the final drive to Jan
through the Underwood bill, sup
ported heavily by. Southern Sen
ators, was launched in earnest II
the Senate today.
Under spur Of leaders Of all fac
lions to speed up debate, hope wa.
high in the Senate that q vot,
could be reached at least by tomor
row or Wednesday.
The report OF Army engineers OF
the Underwood measure was ii
the hands Of Senator Norris (Rep
of Nebraska, chairman Of the Agri
culture Committee. He at ono,
summoned a meeting of the com
N1nfftna IN non OiHa,.