The Birmingham age-herald., 1924-12-06
SENATE DEBATES THE SHOALS

senate is devoting serious attention to the future operation of Muscle Shoals projects, including both the water power and the chemical plants Notwithstanding some evidence of political favoritism in the pleas of certain senators, it is obvi- ous that a majority favor such dispo- sition of the Shoals as will insure the production of explosives in time of war and of fertilizers in time of peace. AL though power companies would like to acquire the Wilson Dam, and chemical monopolies would like to prevent any leasing that would materially reduce the market price of fertilizers, there is lively hope that the original purpose will be adhered to, and that the general public interest will not at least be denied a full hearing.
 The plan sponsored by Senator Under wood is admittedly and even avowedly patterned closely upon the Ford offer. Undoubtedly this plan will, therefore, be resisted by the same influences that blocked the Ford offer during the last session. Such a plan would defeat the desire of the power trust to acquire a water-power monopoly, and it would in- stil the same fear of successful compe- tition into the cohorts now controlling the output and market price of chemical fertilizers. Careful reading of the press reports will reveal the spokesmen for such interests as seek to thwart the full public enjoyment of the benefits inherent in the Shoals project.
 It is encouraging to note that Pres ident Coolidge's opinion as to Muscle Shoals, not only stresses the importance of an early decision, but coincides in a remarkable manner with the stipulations of the Ford offer. It is readily apparent that Henry Ford went right to the heart of the matter in his first response to the invitation of the war department that he bid, and the issues are still sharply di- vided along the same line of cleavage disclosed by his offer. It is significant and not to be ignored that, though many rival bidders have affected to disdain and belittle the Ford offer and to declare that it really bound him to nothing, not one of them has dared to bind himself even to the extent Ford was willing to go. It is likewise significant that, though Ford himself has informally withdrawn his offer, those who speak in the public be- half find itsfeasible and sensible to form ulate a plan of identical contours.
 There is general public approval of the presidents expression of objection to government operation. MT. Coolidge's $ view is succinctly given as follows:
 Much costly experimentation is neces-
 sary to produce commercial nitrogen.
 For that reason it is field better suited
 to private enterprise than to govern
 ment operation. I should favor a sale
 of this property, or longtime lease, under
 rigid guaranties of commercial nitrogen
 production at reasonable prices for agri-
 cultural use. If no advantageous offer
 be made, the development should con-
 tinue and the plant should be dedicated
 primarily to the production of materials
 for the fertilization of the soil.
 There is another objection or two to government operation which the president would probably admit, but which he does not see fit to mention. One of them is the likelihood of inefficiency and polit- ical favoritism in the operation of great national enterprise of this sort, for un- doubtedly politicians would not leave its conduct solely to federal engineers. The other is the individuality of government competition with private enterprise. It is far more the role of government to intervene against monopolies that seek to keep prices high through arbitrary con- trol, and to encourage competitive man. ufacture wherever the public welfare and the national opportunity counsel such a course. This course is counseled in emi- nent degree in both these particulars as applied to Muscle Shoals.