Evening star., 1924-01-09
OFFER S1O0,OOO,O00
FOR MUSCLE SHOALS
Continued from First Page. }

under regulations assuring an adea
quate return.
The language of the offer describes
the proposal as one Ito permit the
use Of a substantial part of the power
for the production of fertilizer: to
place the Muscle Shoals power under
the protection and regulation of the
federal water power act; to enable
the government to col. ect during a
fffty-year period approximately $780,,
100000 in rental and still retain own
ership of all it's properties"
Companies associated in making the
offer to the federal power commits
sion are the Columbus Electric and
Power Company, the Carolina Power
and Light Company, the Yadkin River
Power Company. the Asheville Power
and Light Company, the North Caro-
lima Electric Power Company, The
Tennessee Electric Power Company
the Memphis Power and Light Com
pany, the Alabama Power Company
and the Central Georgia Power
Company.
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 government a
rental sufficient to meet all interest
charges on expenditures on the prof.
ect TO the time of its completion, in
Guiding the S17,000,000 expended dur
ing and just after the war This
total the companies estimate will ap-
proximate S45.000,000 If the govern
ment installs eight contemplated gen.
Grating units in the hydro plant
A sum Of s4.50O,000 would be added
for the value of the present govern
ment steam plant at Muscle shoals
bringing to $4,000, 900 the total on
which interest charges are to be COM
puted. On this sum the proposing
companies offer per cent. which
would return to the government in
the way of rent S2.0000OO a year. If
the government should install more
than eight generating units the COM
panies would increase their return to
the government accordingly
If the government desired to sell
the Muscle Shoals seam plant. one
of the proposing companies would un-
dertake to buy it at a price of s4-
100000 on terms satisfactory to the
government. The rent for the first
100000 per year. for the next four
year sl.500.o00 per year, increasing
the following year to the maximum
To Spend $4,000. 900.
During the first few years the
companies propose to spend not less
than s10,000,0O0 for new transmission
lines and equipment to. deliver the
power for commercial and business
uses in the south by means. in part,
of the so-called superpower system
conceived during the war and by
which power transmission lines in the
states of Tennessee, Georgia. Ala
bama. North and South Carolina are
interconnected. BY this plan the
companies exchange power as de-
mands require and an excess of water
power at any one point is made avail
able for public need at other points in
the system.
The offer proposes to take all respon
sibility for operation off the govern
ment's hands and furnish free power
to operation of locks needed to open
the Tennessee river to navigation. the
government, however, to assume
operation of the locks.
The project would be subject to
recapture by the government. at The
end of the fifty-year lease, as pro-
vided by the federal water power
law; the government would have the
right to take possession of the prop
erty, whenever the safety of the
United States demanded. for manu-
facture of nitrates. explosives or
munitions. The offer declares that
with the completion of the plan pro-
posed practically all the electric
power resources of the southern