The Government is undertaking to develop a great water-power project known
as Muscle Shoals, on which it has expended many million dollars. The work
is still going on. Subject to the right to retake in time of war, I
recommend that this property with a location for auxiliary steam plant and
rights of way be sold. This would end the present burden of expense and
should return to the Treasury the largest price possible to secure.
While the price is an important element, there is another consideration
even more compelling. The agriculture of the Nation needs a greater supply
and lower cost of fertilizer. This is now imported in large quantities. The
best information I can secure indicates that present methods of power
production would not be able profitably to meet the price at which these
imports can be sold. To obtain a supply from this water power would require
long and costly experimentation to perfect a process for cheap production.
Otherwise our purpose would fail completely. It seems desirable, therefore,
in order to protect and promote the public welfare, to have adequate
covenants that such experimentation be made and carried on to success. The
great advantage of low-priced nitrates must be secured for the direct
benefit of the farmers and the indirect benefit of the public in time of
peace, and of the Government in time of war. If this main object be
accomplished, the amount of money received for the property is not a
primary or major consideration.
Such a solution will involve complicated negotiations, and there is no
authority for that purpose. I therefore recommend that the Congress
appoint a small joint committee to consider offers, conduct negotiations,
and report definite recommendations.