Evening star., 1933-05-19
The Tennessee Valley.

President Roosevelts signature, al
fixed to the Muscle Shoals bill yester-
day, gives final effect and direction to
the Governments plans for the further
development of its huge power plant
and fertilizer plant on the Tennessee
River. Ever since the World War, when
the Government undertook to establish
this great hydro-electric power plant
in order to assure the United States a
sufficient supply of nitrogen for use In
making munitions, a controversy has
waged in and out of Congress over the
proper disposition Of these plants,
which cost the people in the neichbor-
hood Of s140,00o,o0 when all vas said
and done. Senator Norris of Nebraska
has fathered the idea of Government
ownership and operation. While the
late President Coolidge and former
President Hoover were in the White
House he was unable to get legislation
for this purpose past tie Chief EXecu-
tive With the advent of President
fIOOSSbtlJ, dONCNCA3 SAiC p4NiAAC NAAcA5SN
completely. For the President and Sen
ator Norris have seen this problem eye
to eye The great experiment, which
Senator Norris insists will benefit the
whole people and result in an eventual
reduction of costs for electricity, Is now
to be made.
The present Muscle Shoals bill goes
far beyond the earlier conceptions of
Senator Norris. 1t looks to the develop
ment of the great Tennessee River
basin, creating q Tennessee Valley
Authority. Under the administration of
this authority plans will be prepared
and put into effect looking not only to
the use of the power developed by the
river but also to development of flood
control, navigation and the industrial
tzation of this vast area in Southeast
ern United States. Already the Army
engineers have made a complete report
upon the possibilities Of the develop
ment Of the valley and it may be used
as a guide for the work soon to be un-
dertaken.
The development by the Government of
ro-electricity at Muscle Shoals and
It's distribution or potential distribu-
ton by the Government has been Wig
orously opposed by the power industry.
The claim Is made that 1t will place
the Government. with its unlimited re-
sources, in direct competition with
private industry; that it will eventually
break down private industry. causing
loss to millions Of investors, big and
little, and will make in the end for
less efficiency in the service of the peo-
pie.
The supporters of the Muscle Shoals
bill, now law, have denied fatty that
private business, where properly and
economically conducted, will be destroy
ed by the Government operation and
distribution of hydro electricity at this
plant and others on the Tennessee
River. They insist that these operations
will result in showing to the country
that the rates for electricity have been
and are far too high that millions upon
millions Of dollars have been written
into the securities of power companies
TOUT Of the air." upon which the people
are expected to pay dividends through
their electric bills.
The Congress and the President have
finally determined to act upon the rec
concentrations Of the supporters of the
Muscle Shoals bill. 1t marks a new de-
parture for the Government. 1t will
give hope to the friends of Government
ownership and operation of public util-
tiles. The experiment is under way.
The next few years will provide the an
swer.