Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-05-13
HOOVER TESTIMONY
At SENATE: SHOALS
HEARING PUT OFF

tary Hoover postponed his scheduled
appearance today at the Muscle
Shoals hearing Of the senate agri'
cultural committee at the request
Of the committee chairman because
several witnesses found it necessary
to return to their homes. A date
will be set next week by Hoover.
Wilbur A. Nelson, state geologist
of Tennessee, and representing the
Nashville Engineering association,
appeared as the first witness. He
read a resolution adopted by the
association requesting that bids for
Muscle Shoals be divided to include
a separate bid for fertilizer and an
other for power. The resolution
recommended that a commission of
five, two of them expert hydro-elec-
trio engineers, be created to con-
slider the bids with a stipulation that
the power should be distributed I'M
der the federal water power act.
Nelson said some engineers held
the opinion that two dams con-
structed below the site of proposed
dam No. 1 would be necessary to
provide transportation the yeal
around for boats large enough to
is done, he said, large boats would
be held up on the Tennessee river
during times of low water.
First Woman Heard
Evangeline G.. Hursen, represent
ing the Public Ownership League of
Illinois, the first woman witness to
appear at the hearings, said the
organization opposed leasing or sell
ing Muscle Shoals to any one.
In this proposition, we are going
to establish a precedent for d1spos1-
ton of our national resources.
eve feel that the sale or lease
Of Muscle Shoals, which was built
with the peoples money, would be
criminal.
MIR. Mayo, Ford's engineer, said
they would not sell one kiIowatt Of
power. Then 1 ask what is he 60
ing to do with it.
"This fertilizer stuff is just
smoke screen; L do not believe they
plan TO produce cheap fertilizer.
She charged that one of the under
lying principles behind the Ford bid
was a desire to make aluminium for
automobile bodies, and said Muscle
Shoals should be used to make alu-
minum for airplanes.
Returns Estimated
L. H. Davis, representing the I'm
ion Carbide company, continuing his
testimony begun yesterday, analysed
the various offers before the commit
tee and summarized the estimated
returns to the government Of each.
He said that of the three proposals
hn
bide proposal of April %, 1924, which
he said will return $120,OOO,OOO to
the government with full develop
ment Of Dam No. 2 exclusive of the
governments share Of fertilizer
profits, and exclusive Of dam No.
3. will yield the government S37'
100000 more than its nearest com
petitor, the Alabama Power com
pany and associated companies, and
will yield the government over $780,
10000 more than the Ford pro-
posal. Substantially the same differ
ence apply if the returns from Dam
No. are also included, he asserted.
cit shows" he said, that the car
bide proposal of April %, 1924, would
yield the government, under the as
sumptions adopted, nearly $38,0OO,-
900 more than the Hooker proposal,
excluding Dam No. and over $55,-
900, 900 more than the Hooker pro
posal including Dam No. 2. The
carbide proposal of April %, 1924 is
only rivaled by the carbide company's
earlier proposal of January 81, 1924
and both its proposals stand con-
spicuously far ahead of any other
proposals in the matter Of financial
returns to the government"
Available Power
Answering Senator Runsdell, Dem
ocrat, Louisiana, Davis said he esti-
mated that $4,000 average horse
power would be available from Dam
No. 2. irrespective of Dam No. 3, for
distribution in the nearby states I'M
der the carbide bid.
Chairman Norris said he believed
the carbide bid carried one of the
weaknesses of the Ford bid in that
it provided that part of the power
should be retained by the bidder to
be used as the bidder chose without
regulation either by the government
or the state of Alabama.
IT would like to get out of Muscle
Shoals for distribution to the people
everything in the way Of power that
is not used for fertilizer" Chairman
Norris said.
II believe that within two years
power will not be needed to pro-
duce fertilizer" he added.
Norris said he believed the car
bide bid was better than the Ford
bid because the carbide company
would receive only ? IL per cent
profit while Ford would receive s
per cent.
Il believe we are entitled to the
use of power" Davis replied.