Evening star., 1933-07-21
us. WARNS BUYERS
Of MUSCLE SHOALS.
LOTS TO BEWARE.
Exaggerated Sales Talks Are
Given by ExpIoiters Of
Valley Property.
LAND SELLS FROM $500
TO 5000 FOR EACH UNIT
Development Of Tennessee Area to
Be Slow, Government OF.
Acials Believe.

ficials Believe.
Most Of the men and women who
sink their savings tn Muscle Shoals real
estate. in the hope Of reaping q rich
harvest from the Governments develop
ment of the area. will lose their money.
according to DR.. Arthur E. Morgan
chairman Of the Tennessee Valley Au-
thority.
There is no Justification for the
present Nationwide advertising OF
Muscle Shoals real estate" says DR.
Morgan. Most of those who buy will
lose. The use Of photographs Of Presi-
dent Roosevelt and Senator Norris tC
help sell these lands Is indecent, when
both have, publicly warned the people
Of America against just such promotion
methods"
Nevertheless, half q dozen or more
concerns have resumed their pre-depres-
sion campaigns to induce Washing
tonians to invest" in lots In the Muscle
Shoals area, survey made today by
The Star revealed. And they use not
only photographs Of the President and
the Senator from Nebraska. but ex-
cerpts from their various public utter
ances regarding the Tennessee Valley
development as well.
Bring $500 to 5000.
Some Of these concerns own as many
as 200 lots>within q few miles of VIII
son Dam. These sites, most of which
are Is feet wide by ITO feet deep, are
selling for anywhere from $500 to
SIS. 900 each, depending on their prox-
unity to the dam. They are located on
both sides Of the Tennessee River. near
the towns Of Florence, on the one hand.
and Shcffeld, on the other.
Here are some Of the selling points
stressed by the men and women en-
gagged In the sale of these lots. which
may be bought for IS per cent Of the
purchase price and monthly payments
Of as little as $3.50;
1. Opsning Of the Governments two
nitrate plants in the Muscle Shoals
area will create employment for thou
sands of men, who will swarm into the
Tennessee Valley from all parts Of the
country.
2. Development of "cheap" electric
power will cause various industries to
move to the Muscle Shoals area, thus
creating jobs for other thousands.
natural resources asphalt, asbestos
bauxite, cotton, clays, cements, coal
dolomite. fullers earth, gravel, graphite,
iron, limestone, mica, natural gas, ochre,
phosphate, potash, sand, shale, silica,
stone, tale, timber-and all these things
can be capitalized at comparatively
small cost. The various minerals, for
instance, are much nearer the surface
than in most localities and therefore
can be mined at comparatively little ex-
penSe.
4. Within the next two years, at
most, there will be q tremendous de-
mand for land in the Muscle Shoals
area, both as home sites for the thou
sands who will 60 there to work and for
commercial ind industrial sites. Natu-
the value of lots in the area, and those
who buy them now will be able to
sell them then at handsome profits.
Other Sales Points.
The sales points stressed by the pro-
moters are disposed of in the following
manner by Tennessee Valley Authority.
l. There Is no demand for nitrate,
at present. Any use Of the nitrate
plants at Muscle Shoals will contem-
plate experimental work. with view
to discovering cheaper method Of
production.
2. Modern science had made It 30
easy to transmit power to distant
established industries to Muscle Shoals
is extremely unlikely.
3. The Muscle Shoals area Is rich
in natural resources. but development
probably will be over q long period.
4. This point Is pretty well covered
by the answers to 1, 2 and 3. The
authority says, however: There are
no opportunities for employment at
Muscle Shoals at the present
time and reiterates that when such
help Is needed, the jobs will be given
to valley residents In 50 far As pos
sible."
Report Exaggeratiom.
The statements Of the promoters, &C.
cording to the Better Business Bureau
Of New York City, which made an ex-
tensive investigation Of various Muscle
Shoals real estate promotion schemes,
are "exaggerations and misrepresenta-
tions." Says the bureaus latest report: :
"A renewed campaign to unload Mus
Gle Shoals real estate on the public at
exorbitant prices by the use of exag-
gerations and Misrepresentation has
been launched by some firms long active
in the business and by q number of new
selling organizations, which have re-
ceived q marked impetus in their oper-
ations from the recent passage by Con-
gress Of the Muscle Shoals Tennessee
valley act. When President Roosevelt
signed this bill, on May 16, he warned
the public against being drawn into
land speculation In the Muscle Shoals
region, declaring he did not want any
body to be lured into buying land with
the idea Of reaping q quick profit and
urging small investors not to get caught
in the clutches Of conscienceless land
SPECTATORS.
Through glowing promises Of resale
profits, maps which highly exaggerate
the size and state Of development OF
the land and by means OF numerous
misstatements, interruptions statesmen
induce uniformed school teachers,
wage earners and other expectant In
vestors to pay Is high as 5000 q lot,
in installments, for vacant land In
Muscle Shoals with . tax valuation OF
only $50 to 500 q lot Moreover, when
the lots are not paid for In full at the
time Of purchase, 6 per cent interest
Is charged on the unpaid balances, and
usually, in the event Of default for 80
days or more, the contract can be can
celed and the money already paid ID
retained by the vendor - hquidated
damages"
Although the Tennessee Valley An
thority has not completed formulation
Of its plans for the development Of the
Southern industrial area, It has pointed
out that development Of the entire
section-and not merely the Muscle
Shoals regions contemplated.
Sunday School to Picnic.
VIENNA, w., July II (speciaD =
The Sunday School Of the Vienna Pres
byterian Church win hold it, annual
picnic tomorrow at Rock Creek Park In