Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-12-04
UNDERWOOD WILL
DEMAND ACTION ON
NEW SHOALS PLAN

WASHINGTON, Dec. 2-Seven
Democrats joined with midwestern
senators today in a determined ef
fort to force action on disposition
of Muscle Shoals beginning tomor
row.
Senator Underwood, Alabama
Democrat. and leader of the south
ern group, announced he would Wig
orously oppose any effort to side
track the question by having it re-
ferred back to the agriculture com
mittce and served notice that he
would make point of order against
any such action.
A new plan for disposition Of the |
gigantic nitrate and power project at
Muscle Shoals was laid before the |
senate today in d bill introduced by !
Senator Underwood. 1t is understood I
to be a substitute for the pending !
Norris government ownership plan. /
The measure was drafted by IN
Gerwood after consultation with |
southern and western senators.
The bill provides Cor lease of the |
project to private citizens before
July /, 1925, under specified condi-
tons. If not leased by then, tho
government would undertake out
and-out government operation OF the |
properties.
Private lessees would be bound TO
produce a minimum Of 1000 tons or |
nitrates within four years and sub
ject themselves to terms under |
which surplus power may be sold.
The government, If it took over |
the project, would operate it through |
the Muscle Shoals corporation" APP
pointed by the president under the |
same conditions provided for private
operation.
Guarantee Nitrogen Production
Under either private or govern
ment operation, according to the
terms of the bill, production of nitro
gen on a fixed graduated scale would |
have to be guaranteed. The first
year 10000 tons would have to be
produced; 10000 tons the second
year; 10000 tons the third year and
10000 tons the fourth year. and
thereafter.
Profits OF a private corporation
would be limited to 8 per cent of the
fair annual cost of production. The
private lease would not exceed 80
years The annual rental ''shall not
be less than 4 per cent of the total
sum of money expended in the build.
ing Of dam No. 2 and the purchase
and emplacement of all works and
machinery built or installed in con-
nection Herewith for the production
OF hydro-electric power" The gov
eminent binds itself, in the event OF
private lease, to the completion OF
dam No. 2 with its locks. and all
plants and machinery for the pro-
duction of power.
A special provision is incorporated
giving the government power to re-
capture the entire properties when
ever the national defense shall re-
qllir."
President Would Name Board
Under government operation, the
operating board Of the corporation
would be appointed by the president
with the secretary of war as eX-
ofticio chairman. 1t would have full
power to operate the project under
the terms of the bill, providing for
its succession for a term of fifty
years, unless dissolved by congress.
If at the end of any fiscal year
after four years, the corporation
shall not have earned sufficient to
meet the interest on bond issues the
corporation shall forthwith cease OPP
erations and shall not resume until
to do so by congress-
Bond issues to the extent of $50 ,000,-
900 are authorized. All common
stock would be owned by the govern
ment.
Regulation of the prices at which
fertilizer made from it's nitrogen
products may be sold by private
companies is vested in the corpora
ton.
Any surplus earnings, after inter
est charges are met, would be de.
voted to development and improve
ment of the properties
Other Provisions of Bill
Other provisions of the bill are
that b.:
Properties not needed in operating
the project may be sub-leased.
The secretary of war is directed to
complete dam No. 8 on the Tennes-
oCG river anu Illdhe SuCU DlOUl1lCd- ! 4
tons in original plans as he may
deem advisable in the interest of
power and navigation and to lease
the project on terms to be provided
by congress-
Surplus power sold by the cor
poration shall be subject to rules
and regulations relating to the sale
and use of power in the several
states n which the power is dis
tributed.
CLEARS WAY
FOR BIG SUPPLY BILLS
WASHINGTON, Dec. 2.-Congress
today gathered up some of the loose
ends of legislation left dangling by
its adjournment last June and pre-.
pared to roll up its sleeves and get
down TO work on the appropriation
bills that will largely occupy it's at.
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