The development of other methods of producing nitrates will probably render
this plant less important for that purpose than formerly. But we have it,
and I am told it still provides a practical method of making nitrates for
national defense and farm fertilizers. By dividing the property into its
two component parts of power and nitrate plants it would be possible to
dispose of the power, reserving the right to any concern that wished to
make nitrates to use any power that might be needed for that purpose. Such
a disposition of the power plant can be made that will return in rental
about $2,000,000 per year. If the Congress would giant the Secretary of War
authority to lease the nitrate plant on such terms as would insure the
largest production of nitrates, the entire property could begin to
function. Such a division, I am aware, has never seemed to appeal to the
Congress. I should also gladly approve a bill granting authority to lease
the entire property for the production of nitrates.
I wish to avoid building another dam at public expense. Future operators
should provide for that themselves. But if they were to be required to
repay the cost of such dam with the prevailing commercial rates for
interest, this difficulty will be considerably lessened. Nor do I think
this property should be made a vehicle for putting the United States
Government indiscriminately into the private and retail field of power
distribution and nitrate sales.