The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1926-03-01
SHOALS Up
IN SENATE
TODAY
By WILLIAM K. HUTcHINsos

BY WILLIAM X. HUTCHINSON
The Governments greatest
'swhite elephant, the $50, 00O. 900
Muscle Shoals water-power pro-
ject, came one step nearer per-
manent solution today when the
Senate began consideration Of the
House resolution, creating COM
mission to arrange q lease of the
property to private interests.
Although the problem has been
before Congress for three years
without a final decision, Admins
tration leaders predicted adoption
of the House resolution by the
Senate within q week. The pro-
posaI has the endorsement Of
President Coolidge, who recon-
mended that the Government turn
the project over to private de-
yelopment.
Opposed by Minority
A fighting minority, led by Sem
ator Norris (R.) OF Nebraska, and
including Progressfves from both
parties. will vigorously oppose this
disposition OF the project.
The insurgents have maintained
that the project was built by Gov
eminent funds for the benefit or all
the people and should be retained
BY the Government.
They advocate creation OF Gov.
eminent commission, similar to the
United States Shipping Board. to
operate the property.
Conservative Democrats, however,
have Joined with the Administration
forces in supporting the House reso-
luton, which would create q COM
mission OF three Senators and three
Representatives to receive bids.
The commission would recon-
mend acceptance Of the best offer,
although reporting all bids back to
the Congress.
Before any bid can be accepted,
the terms will have to be approved
by the House. Senate, and President
Coolidge.
Ford Offer Expected
Runlors persisted, as debate was
started, that Henry Ford will again
make an offer for the property.
Three years ago Ford's offer Tell
through because he insisted on a
lease for 100 years.
The Senate modified the limit to
SO years. Angered by this, Ford
withdrew his offer.
The project, as it now stands, can
produce 40, 900 horsepower, pu. with
the aid of the adjoining steam
plant and its maximum develop
ment, is expected to produce 100, 900
primary horsepower.
Advocates Of the House resolution
believe that with the building OF
"a new dam, above the Wilson dam,
this development can be doubled.
On the other hand, the Govern
ment ownership group protest that
the Muscle Shoals property IL OPP
Grated by the Government as a
single unit in a series of dams
along the Tennessee River, can be
made to produce 1,000, 900 horse.
power and that the whole river can
produce 100000 horsepower.
The insurgents also contend that,
by Government operation, power
can be transmitted TO all adjoining
States and by relays, already sue.
cessfully demonstrated, can even
be transmitted to New Orleans,
Buffalo, New York and even Boston.
Under private operation, the in
surgents pointed out, the power
would be limited to use in Alabama
as the Alabama State Waterpower
Commission, has announced 1t will
not allow transmission lines to go
beyond the borders of that State
Privately operated, the project
would be subjected to the State
Commissions rulings.
One confusing issue will be pro.
tected into the debate.
This involves the question OF
manufacturing fertilizer.
Advocates of the private operation
contend the project would be used
primarily for this purpose while tile
Government ownership Senators de
clare the production of Fertilizer, -
price beneficial to farmers, Is
new impossible.