Evening star., 1933-09-24
VALLEY LAND BOOM
MAY END IN COURT
u. S. to Prosecute Promoters
/ if Federal Agencies Find
Fraud Evidence.

Prosecutions to stop formation of
vast Tennessee Valley Spocula tive land
bubble will be resorted to if necessary
BY the Tennessee Valley Authority as
result of the mushroom growth Cf land
companies throughout the country at
tempting 10 sell property on Specu-
lative basis to the public.
The Valley Authority announced yes
terday that Ito curb uniustified land
speculation in its area of development
It has asked for and is receiving the
cooperation of the Department of JUS
tice and the Pest Office Department"
Investigators of the two departments
are scrutiniZing. at the Valley Author
itys request. the alegadlv misleading
statements made in advertising matter
issued through the mails and otherwise
on the merits of speculation cn prop
erty in the Tennessee Valley. p7rticu-
1arly in the neiehborhCCd OF Muscle
Shoals.
Several Firms Here.
Washington has It's share of these
mushroom land companies. several OF
them operating here, with Staffs of
salesmen on hand to eXtCl the virtues CT
the area involved, and to characterize
the Tennessee Valley as the American
Ruhr"
In addition to eskinr tho aid cf the
Post Office and Justice Departments.
the Valley Authority alsD has emil I'd
the aid OF rcpre~entati,e G"oups and in
dividuals to help comoat the threatened
bubble of land sDecula ion
Says the Vallev Authority:
AS was the case when the Muscle
Shoals development first began. de-
signing land sharks are using thc new
deal for the valley as an excuse to
dump lots at inflated values on an out
side public not acquainted with the
true status of conditions There is less
justification for wild-catting at Muscle
Shoals now than before. Under the
new orde of things, Muscle Shoals fig
ures as a single unit III President
RooseveH's many-sided program for tic
social and economic upbuilding of the
Tennesse River Basin.
Prospectus Is Quoted
The Valley Authority statement
quotes one nationally circulated MISclc
Shoals real estate prospectus as FOL
lows:
people in all walks of life are pour
ing into the Muscle Shoals district tGr
new opportunity and investment. and
they will continue to come by hui-
dreds Of thousands in the months
ahead"
The Valley Authority continues:
The truth Of the matter is that no
immediate activity locking to the en-
ployment of any considerable number
of people is cOntempla led On Govern
ment projects at Muscle Shoals at the
present time. No outside labor is
needed; there are more locally jobless
than can be Immediately cared for.
Government housing is more than suf-
hclent to care for the personnel to be
employed on local Federal projects for
some time to come
quoting some of the advertisements
Tor property in the valley, the Valley
Authority continues:
The sad part of it is that most of
the property offered for sale is located
outside the bounds of reasonable de-
Eeiopment. 1t constitutes pretty much
the same property that was previously
SOLD on the strength of a boom that
tailed to materialiZe. Also. contracts
are generally unfavorable to the pur-
chaser. There is little resale oppor-
tunlty. Many lots previously sold have
been defaulted. Sidewalks are cracked
and uncared for, and grass grows in
many Of the improved streets"
Visions Held Untenable.
advertised visions of an American
Ruhr. and another Detroit are unten-
able in view Of the purpose of the act
creating the Tennessee Valley All
thority to make power distribution as
widespread as possible, primarily
through municipal and cooperative
agencies. Under this law, the sale and
use of power by industry is secondary
Consequently, there is no reason for in
dustries to locate right at Muscle
Shoals
1T was President Roosevelt who. in
signing the Tennessee Valley Authority
act, cautioned innocent investors not
to fall into the clutches of conscience
less land spectators. The authority
can serve no better purpose in this
connection than by repeating the warn
Ing of its chairman. Arthur E. Morgan:
"'There is no justification for the
present methods of advertising Muscle
Shoals real estate. Unscrupulous per-
sons are taking advantage of the popu-
lar interest III the Tennessee Valley
development to offer for sale lote where
they never will be needed The use
of photographs of President Roosevelt
and Senator Norris to help sell this
property is indecent. when both have
publicly warned the people against such
promotion methods"