The last year has seen considerable changes in the problem of Muscle
Shoals. Development of other methods show that nitrates can probably be
produced at less cost than by the use of hydroelectric power. Extensive
investigation made by the Department of War indicates that the nitrate
plants on this project are of little value for national defense and can
probably be disposed of within two years. The oxidation part of the plants,
however, should be retained indefinitely. This leaves this project mostly
concerned with power. It should, nevertheless, continue to be dedicated to
agriculture. It is probable that this desire can be best served by
disposing of the plant and applying the revenues received from it to
research for methods of more economical production of concentrated
fertilizer and to demonstrations and other methods of stimulating its use
on the farm. But in disposing of the property preference should be given to
proposals to use all or part of it for nitrate production and fertilizer
manufacturing.