Recommendation

The question of how to dispose of Muscle Shoals is again before Congress, this time in the form of a recommendation from a joint Congressional committee set up several weeks ago (TIME, March 22) to receive bids. There were six men on the committee: Senators Deneen, Sackett, Heflin; Representatives James (Mich.), Quin (Miss.) and Morin (Pa.).

There were seven bids made, but consideration seems to have centered on two only, the combined bid of the Muscle Shoals Fertilizer Co. and the Muscle Shoals Power Distributing Co. and that of the Air Nitrates Corp. Four members of the committee favored the first of these bids and recommended it. Senator Heflin, who lives in the same state with Muscle Shoals, favored the Air Nitrates Corp. bid. Congressman James was too displeased with the bids to make recommendations.

The chief bids: 1) The bid of the Muscle Shoals Fertilizer Co. and Muscle Shoals Power Distributing Co, comes from a group of southern power companies of which the Alabama Power Co. is the chief. It provides for payment of $136,330,000 on the present dam No. 2 during the 50-year lease, or of $181,348,000 if dam No. 3 is also built. It allows the Government to take over the equipment in time of war. It guarantees 10,000 tons a year of nitrogen fertilizer in three years, 20,000 tons annually in six years and 40,000 annually in eight years. The last 20,000 tons of this production is predicated on the previous sale of the smaller output. Profits on the fertilizer are not to exceed 8%, and a farmers' board is to supervise the books and manner of distribution. Excess power will be distributed under supervision to neighboring states. 2) The Air Nitrates Corporation bid comes from the American Cyanid Co. The rental for both dams No. 2 and No. 3 would be $85,931,000 for 50 years, or $93,739,000 if still a third dam is constructed by the Government. Production of 20,000 tons of nitrogen is guaranteed, but anything more is contingent upon larger investments by the U.S. in dam building, etc.

Certainly a row is pending in Congress over these recommendations, and it is exceedingly dubious whether any action will be taken as the closing legislative jam in Congress grows.