Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-18
Compromise Provides u. S.
Production of Power and
Nitrate Plant Lease.
GOVERNMENT TO BUILD
TRANSMISSION LINES
Manufacturing Limited to Ferti-
lizer and Electrochemical
Products Under Pact.

The 10-year-old deadlock between
House and Senate over Muscle Shoals
legislation was definitely broken today
The Senate conferees and a majority
of the House managers signed a COM
promise agreement for operation of the
Governments $5O,0OO,O0o power and
nitrate plant and the report will be
submitted to the House tomorrow.
The agreement provides for Govern
ment operation of the power plant,
lease of the nitrate plants for produc-
ton of fertilizer and by-products if
possible, and Government construction
of power transmission lines for distri-
button of electricity from Wilson Dam.
Government to Build Dam.
The compromise reached today pro-
videS that the lessee of the nitrate
plant can obtain Is per cent of tbs
amount Of power used in production of
fertilizer for manufacture of electro
chemical products off the Government
reservation and as much secondary
power as the President decides is fair
and equitable.
The conferees retained the provision
of the original Senate bill for con-
Cove Creek Dam on the Clinch River.
The agreement was signed by Sen
ators McNary, Oregon, and Norris, Ne
braska, Republicans, and Smith. Demo-
crat South Carolina, and Representa-
tives Wurzbach, Republican. Texas:
Fisher of Tennessee and Quin of Mis-
SisSippi. Democrats.
Representative Reece. Republican,
Tennessee, said he would decide before
the report is submitted tomorrow
whether he will sign.
Text of Compromise.
The text of the compromise under
which the lessee would operate the
plant follows:
THE lessee shall covenant to operate
said plant and use said property exclu-
sively in the production and manufac-
ture of fertilizer and fertilizer ingre-
dents to be used in the manufacture
or production of fertilizer, and, if. in
the manufacture of fertilizer or fer
tilizer ingredients, by-product is pro-
duced which is not an ingredient of
fertilizer, the lessee shall have authority
to sell and dispose of such by-product
as the lessee shall see fit, and shall
likewise have authority to process such
by product so as to prepare the same
for a market.
Provided, however, that in consid-
Grafton of the lessee complying with
the requirements as to the manufacture
of fertilizer as prescribed in subsection
D Of this section, the lessee shall have
the right during the term of the lease
to purchase, under provisions of Sec
ton 26 hereof, an amount of primary
power from the corporation equal to
Is per cent of the amount of power
used by the lessee in the production CT
fertilizer, but such Is per cent of power
so purchased shall be entirely indie
pendent of and not used in connection
with the leased premises, nor shall the
power so purchased be used for the
processing or further manufacture of
any product produced or manufactured
on the leased premises except such by
products as are not ingredients of ferti-
liZer, and in no way shall said power
or any machinery operated by it be
connected directly or indirectly with
the power used for the production of
fertilizer or fertilizer ingredients en-
said leased premises, and no part of
the property herein leased shall be
used either directly or indirectly for
any purpose in connection with the said
Is per cert of power to which the said
lessee Is given preferential right.
Year to Let Lease.
Provided further, that the said
lessee shall be entitled TO such quantity
of secondary power, subject to all the
conditions herein set forth applying to
said IS per cent of primary power, as
in the judgment of the President is
fair and equitable
Under the compromise the President
will have one year after enactment Of
the bill in which to negotiate a lease
for the nitrate plants. If he fails to
obtain a lease within that time the
Government will operate the plant for
experimental production of fertilizer.