Evening star., 1925-01-05

port IL is believed that the course of
procedure-which has already been
considered favorably by the Presf-
dents advisers In general terms-will
be something like this:
The properties at Muscle Shoals USE
full in the production of power to be
segregated from those useful in the
production Of nitrates, and each group
to be subject to separate disposition.
The properties useful In the produc-
ton of power, to include Wilson dam
and power houses, the land upon which
they are constructed, the lands within
the reservoir site, sufficient additional
land for auxiliary structures, such as
switching substations, the $4,000 kVa.
steam plant connected with nitrate
plant No. 2, adequate land in connec-
ton herewith, and the right to use
the waters of the Tennessee River for
power development at Wilson dam
and for operation of the steam plant.
United states May Hold Title.
The hydro properties to be licensed
for a period not exceeding SO years
under the provisions of the Federal
water power act, in the same manner
as other government dams" The
title to properties built or acquired
| by the United States to remain In the
| United States.
The steam plant either to be leased
or to be sold, preferably the latter,
| to the licensee of the hydro proper
| ties in order that the energy which
| il can produce may be employed IN
+ building up the primary power for
| the hydro plant.
| The nitrate properties to be leased
| for operation If reasonable offer
| is presented containing adequate
| guarantees of continuous operation
| in the production Of nitrates or other
| products and for the maintenance of
| the properties in adequate condition
| for the production of nitrates in
| time of war; otherwise the nitrate
| plants TO be maintained in stand
! by condition, or operated directly by
| the United States, or otherwise dis
posed of as conditions may warrant.
| In order TO insure distribution of
! power generally throughout the
| South, the hydro properties would
| preferably be leased to a corpora
tion Jointly financed and owned by the
| Southern utilities companies.
| In order that an adequate supply
| Of power may be available for the
| operation of the nitrate properties.
| the license issued for the hydro
properties should contain reserva-
| tion for purposes of such operation
| of SOC, 900, 900 kwt. hours of electric
| energy per annum, such energy to be
| delivered in blocks on reasonable
| notice, and at a price not greater
| than that at which similar amounts
| are sold to any other purchaser, APP
| propriate adjustment being made for
| load factor, power factor, and dis
| tance of transmission.
Annual Payments.
| In order to cover interest on in
| vestment of the United States and
| depreciation on the dam. the cor
poration to make annual payments to
| the United States of per cent on
! the cost OF the dam and appurtenant
| lands and howage rights, power
| house and appurtenances (but not
| including locks or Dam No. u: also
| 10 pay the administrative charge pre-
scribed under the Federal water power
| act. To the extent that the above
| rate makes possible production of
| power more cheaply than elsewhere,
| such saving to be reflected in rates TO
| licensees under strict regulation,
either State or Federal
| In accordance with the terms of
| the Federal water power act. the cor
poration would be liable for all ordi-
nary maintenance, repairs and re-
| newals, and to establish and main
| tain adequate reserves for such pur-
| poses. The risk of destruction of
| the properties would be assumed by
the United States.
| Finding to BE Binding.
| In case of any dispute or disagree
! ment between the corporation and
| any purchaser or prospective pur-