Evening star., 1925-01-05

avoid having to put up a big guaran-
tee on one side or the other.
Department of Commerce reports have
shown how this country is now at the
mercy of a Chilean combine, backed by
British capital, for its supply OF nitrates
The price is fixed as was shown re-
Gently when more nitrate lands in Chile
were sold and a condition of sale was
that the nitrates must be sold at
price fixed by the combination.
Cheap Process vital.
For manufacture of munitions for
war times and for manufacture of
fertilizers In times of peace we
must nave 4 cheap process of making
nitrates. One deplorable feature of
the whole Muscle Shoals problem is
that the farmers have been led to
believe that they are going to get an
abundance and even a superabund-
ahce or cheap fertilizers at only
traction OF this present cost. This is
a pitiable hoax. Cheaper fertilizers
still are far off.
Chilean nitrates are now selling in
the United States for something like
S4S ton. The Chilean producers
can take a drop of $50 to $35 a ton,
reports received by the Department
of Commercs show. The American
manufacturer must be prepared to
meet such a drop-must find a pro-
cess that VIII make it possible for
hlm to manufacture at something
like $l8 ton because TO drive an
American manufacturer out of busi-
ness the Chilean crowd is ready to
make that tremendous cut. The best
the American manufacturer can do
now, by the present processes, is to
produce nltrates at S65 or $40 a ton
SO the need for earnest work to de-
Velop a cheap process is obvious.
President Sees Need.
President Coolidge, after confer
ences with his cabinet, is wide awake
to this situation. 1t is Thoroughly
agreed that the Government must go
vigorously after the development of
synthetic nitrates. 1t might subsi-
dlZe some one to work out this pro-
cess on commercial scale--if 1T had
any guarantee that the necessary
sIO,00O.OOO OF $20,000,000 or $40, ,00O, 900
would actually be spent in the at
tempt. 1t is pretty certain, the
Presidents advisers say, that private
capital will not make the gamble. so
the Government itself must do that.
NOW the best the Government can
90 is 10 demonstrate on n CONNER
cial scale that cheap manufacture of
nitrates Is possible, and then private
capital viii be only too glad TO take
up the new manufacturing process.
But this demonstration cannot be
made in laboratory. II must be
done on large scale operation to
demonstrate the commercial practica-
bluty. Private industry is unwilling
to put $4,000 900 or SIS. 900, 900 into
such an experimental plant.
Has Expert on Subject.
But the Government has the plant
at Muscle Shoals and has a labora-
tory now doing fixed nitrogen ex-
Fermentation and research under
the best authority in the country on
this subject. DIR. Frank c. Cottrel
What could be more logical than
to turn the Muscle Shoals plant over
to DR.. Cottrell to work out a cheap
nitrate process-using the income
from the Muscle Shoals power finance
the scientific search?
White House conferences have
shown that the administration has
been for some time leaning strongly
in this direction.
The situation in the Senate has
come 70 such pass that 1t is quite
evident that the only proposal that
can get through is to turn the prob
with power to act in disposing of the
Muscle Shoals property
The Jones bill, introduced on De-
cember 16, recognized this chance
for action. 1t proposes a commission
of three, including the Secretary of
War, the Secretary of Agriculture, and
a third expert not in the Government
employ to be appointed by the Presi
dent, who would make recommends
tions to Congress on the best disposi-
tons of these properties.
There are many who hope that
Congress will authorize the President
to appoint a commission of experts
with authority to make disposition OF
the Muscle Shoals properties without
coming back to Congress to thresh
out the terms. It is argued that this
would be the wisest course because
the intricate problem could then be
handled by group of men who could
give consideration to the economic
phases of the situation-which are
the controlling factor-free from any
political pressure. This is something
that Congress cannot do.
If Congress carries out this plan
which has the administrators sup