Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-17
OPERATION OF MUSCLE SHOALS
BY GOVERNMENT HELD FUTILE
Chamber of Commerce Head Declares
Plants Cannot Be Economically Used
for National Defense or Fertilizer.

pounds Of material In the supply Of
which Muscle Shoals has no special adj
vantage must be added to these three
pounds Of nitrogen. The chemical engi-
neer Of the Department Of Agriculture
said, My opinion is that the shortest
road to cheap fertilizer is to help the
manufacturer. 1t has only been
few years since liquid ammonia cost
from 80 cents to IS cents a pound In
cylinders, Competition came
along between various manufacturers,
and now 1t Is reported as being
sold for about So cents pound in tank
cars"
Mr.. Barnes statement said:
Around Muscle Shoals has been
raised an issue of incalcuable impor-
lance to the future of American industry
and the maintenance Of sound national
economic policy.
What disposition Is to be made Of
this property is, in itself, of small con-
sequence compared with the far-reach-
ing effect it may have In marking the
way for a departure from the tradi-
tional principles upon which Ameri-
can industrial achievement rests.
Government operation Of the Muscle
Shoals plant cannot be justified from
the viewpoint either of economic en-
terprise or of national policy.
1.-THE purpose for which 1t was erected
national defense, has long since been ac-
complised in other ways. Private in
dustry is now producing three times the
quantity of nitrateS that would be re-
quired for military purposes in the
event Of major war-flve times the
amount that would be required by any
war that now seems even remotely
probable.
PLANT Virtually Obsolete"
Private industry, aided by SCIENTIFIC
research, has so improved the processes
of nitrogen fixation that from this
viewpoint the Muscle Shoals plant ID
virtually obsolete. It's value for the
manufacture Of fertilizer Is equally
questionable. We have the testimony
of experts to the effect that there Is
nothing that could be accomplished by
the Government in the way Of scientific
experiment In the flxation Of nitrogen
and the manufacture Of fertilizer that
cannot be done and that has not al
ready been extensively done by private
| industry.
Shoals Is hydro-electric power. Con-
corning this the question at issue Il
whether the Government shall enter
the field Of economic enterprise, in vio-
lation Of every principle hitherto OBJ
served in the conduct of government as
well as in the conduct of industry, by
developing and distributing this power
Here, again, there is no question of the
capacity Of private industry to render
this public service, probably more EN-.
GENTLY and more cheaply than it car
be rendered by the Government, which
was not designed to perform such 9
function.
"It would be, merely as a practica.
matter, an experiment Of doubtful
value to have the Government under.
take with virtually obsolete equipment
and q process upon which private in
dustry has already improved the manu-
facture Of nitrates and fertilizer. 1t 4
Of far greater moment to determine
whether the Government shall under
take without any economic Justification
and in response to no public need tt
compete with its own citizens.
''The answer to that question vii
affect vitality the future not only Of al
! industry but Of Government itself"