The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-10-29
ALABAMA FRI
IS SEEKING
SHOALS
Corporation Would Manufac-
ture Fertilizer and Build
New Dam

The Alabama Power Co., and
associated southern power COM
panies, today submitted to the
Muscle Shoals Commission an Of
fer for the entire Muscle Shoals
plant, including guarantees for
the manufacture Of commercial
fertilizers.
The power companies will lease
for fifty years the water power
and steam plants at Muscle
Shoals on 3 basis which would
return the Government per cent
on its investment.
Wilson power dam has been
c0mpleted ct q cost Of $50, OO0,-
600, and the annual rental for this
dam would be $1,000, 900.
The companies will build, with
out cost to the Government, q
new dam that full power may be
generated at Muscle Shoals. This
dam il estimated to cost $40, OO0,-
600. For use Of power from this
dam the companies will pay 3 4
per cent annual rental to the
Government, or 81 200, 900.
u. 8. Could Recover Plant
At the end Of the fifty.yeAr-lease
term the Government. II It de-
sired, could recover all its Muscle
Shoals properties, costing TO date
about 800. 100000, after receiving
in rents from the power plants
$3.50. 900, 900.
The companies propose nominal
rents by the Government for the
nitrate plants, but agree to make
all necessary outlay In renOdeling
nitrate plant No. J., to equip it Tor
commercial fertilizer production
In peace and nitrates for war time.
They report their belief In the
feasibility OF fertilizer production
on commercial basis at the Muscle
Shoals plant and are willing to
make the experiment themselves
or to cooperate with others.
The Muscle Shoals Commission
has no power to enter into contract
for lease Of the Muscle Shoals
properties, and legislation by Con-
gress is necessary to delegate that
power.
Bidders for this great plant are
uncertain what conditions and
limitations Congress may prescribe
for such a contract.
win Meet Public Rewards
The power companies believe 1t
the desire Of Congress that nitrate
plant No. be operated at once
70 capacity In the manufacture OF
fertilizers and that plant No. be
changed to permit fertilizer pro-
~. t. So -
used for nitrate or fertilizer pro-
duction and other useful products
In war and In peace, and for dis.
under public regulation.
The power companies believe they
can meet these public demands, and
that the rental offers made the Gov
eminent for the fifty-year period
il q reasonable money return for
use Of Government facilities by
private industry.
Recommendation for construction
Of Dam No. 3, as an aid to naviga-
ton and for its power production,
is made by the power companies
under belief that development In
Mississippi, west Tennessee. Ala.
bama, Louisiana, and North Florida
will absorb a maximum output from
this great plant. The power pro-
duced at Wilson dam and at the
steam power plant in operation has
been used to maximum In supplying
emergency. power demands ever a
large area.
Report Being Prepared.
The offer from the power COM
panies was made to the commission
by Thomas w. Martin, Birmingham,
Ala, president Of the Alabama
Power Company, and his associates
of the Tennessee Electric Power
Company and the Memphis Power
and Light Company, which have
transmission lines in the area.
The commission Is preparing its
report to President Coolidge urging
utilization either by private in
terests or by the Government of
the plant facilities. The offer will
be included in the report. 1t being
the only general private bid thus
far received.