Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-01-10
S100,0OO,0O0 OFFER
/ FOR MUSCLE SHOALS
/ BY SOUTHERN FIRMS
Nine Companies, Including
Central Georgia, in Deal.
Manufacture of Cheap Fer
tiIizer Provided for

w ASHlNGION, Jan. J.-tBy Inc y
Associated Press "A new offer for
electric power to be generated at
Muscle Shoals, promising return Of
$100,000,000 to the government over
a period of fifty years. was rendered
today by the nine principal associat
ed power companies of the Southern
states.
The offer does not include the nj
trate plants which would be left free
for the manufacture of fertilizer by
Henry Ford, or any one else who
could come to terms with congress-;
and specifically reserves a certain
part of the power to be developed at
the Wilson cam next year, for the
manufacture of fertilizers under
such terms as the government
might prescribe.
Representative Hull, of the house
military committee, developed the
new proposal by his recent request
to the federal power commission to
invite offers for the hydro-electrsc
energy to be developed at Wilson
dam in 1925.
Hull to Support Offer
After the Submission of the offer
today, Mr.. Hull in a statement de-
clared the Ford offer utterly IN
adequate and "of doubtful possible
benefit" by comparison. He said
he would introduce an appropriate
resolution in the house.
The language of the offer de
scribes the proposal as one ito PEE
NIT the use of substantial parr
of the power for the production pf
fertilizer; to place the Muscle
Shoals power under lie protection
and regulation of the federal water
power act; to enable the govern
period approximately $1OO,0O0,OO ~
rental and still retain ownership OF
all its properties
The companies associated in MAX
ing the offer to the federal powes
trio and Power company, the Caro-
lima Power and Light company,
the Yadkin RIVER Power company
the Asheville Power and Iaiglf
company, the North Carolina Elec
trio Power company, the Tennessee
Elec tric Powe rconlpaIly, the Mem
phisr Power and Light company.
the Alabama Power company and
the Central Georgia Power com
pany.
$2,000,0O0 a Year Return
The offer was made in response
to request from the federal conl
mission to the companies for an es
innate CT what price the government
probably could secure for the hydro
electric energy which will becona
available on completion of the Will
son dam in July, 1925.
The nine associated companies pro
pose to organize a company to lease
the plant for fifty years under the
terms of the federal water power
|act; to agree to pay to the govern
ment rental sufficient to meet all
interest charges on expenditures on
the project to the time of its com
pletion, including the $17,000,000 ex-
pended during and just after the
war. This total expenditure the conn
panies estimate will approximate
s45 100000 if the government I'M
stalls eight contemplated generating
uililS III IDG HyuiO Dlhnl.
A sum Of $4,500,000 would be add
ed for the value Of the present gov.
eminent steam plant at Muscle
Shoals, bringing to $50 100000 the
total sum on which interest charges
are to be computed
On this sum the proposing com.
panies offer four per cent, which
would return to the government in
the way of rent $2,0OO.000 a year.
IL the government should install
more than eight generating units the
companies would accordingly in
crease their return to the govern
ment.
If the government desired to sell
the Muscle Shoals steam plant one
of the proposing companies would
undertake to buy it at a price OF
$4,500,000 on terms satisfactory to
the government. The rent for the
first six years would be at the rate
of 100000 per year; for the next
four years $1,500,000 per year, in
creasing the following year to the
maximum.
Super-Power System
During the first few wears the
companies propose to spend NOT less
than $4,000, 600 for new transmits
sion lines and equipment to deliver
the power for commercial and bust
ness uses in the south by means, In
part, Of the so-called super-power
system conceived during the war
and by which power transmission
lines in Tennessee, Georgia, Ala.
banla. North and South Carolina ara
inter-cornected. BY this plan tina
companies exchange power as de-
Tands require and an excess OF
Waterpower at any one point is
made available for public need at
other points in the system