which various other States have an abundance close at hand. The future of Louisiana is dependent upon cheap power, not upon the questionable production of cheap fertilizer.

Under these circumstances it was to be expected that reason would in time prevail over the Ford frenzy, and when it did it was only human nature that Senator Ransdell should become cold toward the Shoals offer of the Detroit manufacturer. It does not require long vision to discern that those Senators and Representatives guilty of supporting the Ford offer will in due time be retired to private life by a justly indignant constituency.

[Charlotte (N. C.) Observer, April 21, 1924]

WAKING UP

Developments during the past few days at Washington and echoes in other sections have confirmed our belief that the people of the country, as a whole, are beginning to wake to the absurdity of the McKenzie bill which recently passed the House by a substantial majority, the intent of which is to turn over to Mr. Henry Ford, in utter disregard of the Federal water power act, and practically without restrictions or guarantees, the Muscle Shoals properties upon which the Government has already spent more than $80,000,000, and upon which it would spend before completion of the project a total of approximately $135,000,000. The most surprising thing about the McKenzie bill is not that it would turn over the present investment of more than $80,000,000, plus a new $3,500,000 steam plant, to Mr. Ford for a paltry $5,000,000, but that it should absolutely disregard the provisions of the Federal water power act, which was laboriously worked out and brought into being after nearly two decades of earnest and consistent effort by such statesmen as the late President Roosevelt and the others who, chiefly through him, became really interested in the conservation of the natural resources of this country; and that this, probably the largest single block of water power in the country outside of Niagara Falls, should be turned over to a private interest which has already announced that it would not sell power to such industries as might want and require power within transmission distance, but that the power would all be used in industries developed and fostered by the corporation to be organized by Mr. Ford that will have such absolute control of the Muscle Shoals property.

It is beginning to be realized that the handing over of the Muscle Shoals property under such terms for 100 years to such a corporation to be formed by Mr. Ford or anyone else would constitute a subsidy to the industries that might be established by such a corporation as has never been enjoyed by any industry in any country in the world." It would be bad enough if this subsidy were to be for one restricted and isolated industry, but when it is realized that any industry in any line of manufacture may be established, one may begin to appreciate the dangers that lie in this proposal. There is real danger to existing industries, particularly in the Southeastern States, which would be compelled to compete on unfair terms with the industries that would be established by Mr. Ford's corporation. This may well mean distress and disaster in one or in many lines of manufacture; and this explains the uneasiness that is felt by those cotton-mill men and industrial leaders who have given thought to the proposition and have realized the dangers that lie therein.

We say that the people of the country are beginning to realize the dangers in and the absurdity of the proposition contained in the McKenzie bill. Twelve months from now, possibly six months from now, the people of the country will be amazed that the House of Representatives ever gave serious consideration to such a bill, to say nothing of passing it by a substantial majority. There is little, if any, likelihood that the Senate will pass the bill, and this is a fortunate circumstance not only for the country at large, but particularly for Congress. The power at Muscle Shoals should be developed and conserved for the use of the rapidlygrowing industries of the Southeastern States, and the Observer has confidence that this is what is going to be done.

[The Record, Columbia, S. C., April 24, 1924]

North and South Carolina, and Alabama, as well, have made tremendous progress in the building of cotton mills and other factories. The location of such industries are largely determined by the proximity of cheap power. This fact is emphasized splendidly when we note that Mississippi, Louisiana, and Arkansas have not kept pace with the Carolinas because they have not developed their electric-power potentialities.

[The Herald, Spartanburg, S. C., April 28, 1924)

POWER IN THE SOUTHEAST

It is true, we believe, that the first demonstration of the linking up of great electrical power lines occurred in the South, between Georgia, South Carolina, and North Carolina, something like two years ago. To-day the possibilities in this method of joining hands, uniting forces, is a matter of the keenest interest to the students of electrical energy and its distribution. In Washington last week Dr. Joseph Hyde Pratt, of Western North Carolina (Inc.), appeared before the Senate committee considering the Muscle Shoals property and its lease to Mr. Ford. In his statement to that body, one of the ablest made, he revealed something of the progress of hydroelectric development in the Southeast and urged the conservation of this great resource of the region. In concluding his statement Doctor Pratt said:

"I have tried to show that the industrial life of the Southeastern States is not only interested in but will be partly dependent on the water power developed at Muscle Shoals, and that the plan for the utilization of the secondary power, as well as the primary power, is a very big factor to be considered before approv ing any development for Muscle Shoals. I have tried to show that the Federal power act was passed in the interest of the conservation of our water powers, which unlike the conservation of any other natural resource, is by a maximum judicious use of them-the more our water powers are used the more valuable they become. The Federal Power Commission, authorized by this act, assumes, as I understand the act, to instigate and determine whether or not any proposed water-power development coming under its jurisdiction will insure the most efficient development of that particular power and be in accord with the most efficient development of the powers on the stream as a whole. Therefore, it is my opinion that the best interests of the country in the development of Muscle Shoals will only be conserved by having this development carried out under the authority of the Federal water power act.

"If Muscle Shoals is not leased under the provisions of the Federal water power act so that at least a portion of the power developed will be made available to the Southeast, then I believe that the only alternative is for the Government itself to operate the plant and distribute the power to the benefit of the Southeastern States. There is perhaps no more important problem confronting these Southeastern States of Virginia, North Carolina, South Carolina, Georgia, Alabama, Tennessee, Mississippi, and Louisiana than the disposition of the Muscle Shoals water power. Its solution will have a most important bearing upon the industrial future of these States.'

[The Times, Raleigh, N, C., April 28, 1924]

HENRY FORD IS 'NOT TO GET MUSCLE SHOALS

The protest against acceptance of the Ford offer is no longer confined to those who are bidding against Ford or to those who believe in Government ownership. It is becoming nation-wide and it comes from those who object to neither cheap fertilizer nor cheaper automobiles. It comes from those who have some knowledge of what hundreds of thousands of horsepower mean to a section which is not peopled solely by farmers voting the Democratic ticket. It comes from men who know that electrical energy working for the people of an entire section of the country is of far greater public benefit than the same amount of power applied to the personal use of even a Henry Ford. It comes from men who know that nitrates made with a part of the power developed at Muscle Shoals can never hope to return an answer to the question of what is wrong with farming throughout the United States.

The protest is strong enough to defeat the Ford offer; but the South, which will benefit most by reason of such defeat when the power has been applied to southern industry, can not pick out a man among its representatives at Washington and say that he used his brains on the proposition or even sought to enlist the help of those of his constituents who were in a position to give him expert advice.

Chief credit for having balked this senseless waste of the people's property must go to Norris of Nebraska, representative of a section of the country which could be excused for a lack of interest in the matter.

[Daily Dispatch, Henderson, N. C., April 30, 1924)

LEAVE Ford out OF IT

The generating of electric power is, after all, the biggest hope of the Muscle Shoals property. And we do not object to Ford doing that, provided he will do it, and there is some way to see to it that he does it. The objection to the Ford bill, as we understand it, is that he wants it without any strings tied to it, in a manner that is beyond reach of recovery of the Government, though the Government is the owner, and for a mere song, and paying the Government but a mere pittance of the value of the property or of the revenue from it. Henry is looking out for Henry, and for Henry and his children and grandchildren and only for them. The other considerations are mere incidentals to the piling up of a greater fortune. He would make of Croesus but a pauper by

comparison.

The fact of the business is the Muscle Shoals property, owned by the Government as it is, should not be disposed of by the Government, but should be let to a private enterprise for development and operation, but not for any space of 100 years, as Ford asks, and only upon such terms will he have it. Since it is to benefit the South, let a southern concern have it, but with the necessary strings tied to it.

[The Citizen, Asheville, N. C., April 26, 1924]

MUSCLE SHOALS AND SOUTHERN INDUSTRY

The case for southern industry in its dependence upon Muscle Shoals for much needed motive power, now and still more in the future, was convincingly put before the Senate Agriculture Committee by Colonel Pratt, president of Western North Carolina (Inc.).

In six years, said Colonel Pratt, the water power of North Carolina will be taxed to capacity to meet the demands of this State's manufacturing plants. North Carolina and adjacent States are looking with confidence for a development of Muscle Shoals which will have as a principal part of its program interconnection of power generated there so that it can be distributed throughout the southern States according to seasonal necessities.

For these reasons and others Colonel Pratt argued that the best interests of the country in the development of Muscle Shoals will be conserved by having the future of this great property directed under the provisions of the Federal water-power act, which would not be the case under the present terms of the Ford offer.

[Democrat, Johnstown, Pa., April 29, 1924]

FORD AND MUSCLE SHOALS

Industrial leaders in the South are just beginning to realize wherein the issue lies in connection with the leasing of Muscle Shoals. If power at the shoals is developed in accordance with comprehensive plans projected by Government engineers, the whole industrial South will be affected." Since it is expected that the Muscle Shoals operation will produce power at a minimum cost, any industry or set of industries, having exclusive rights to it, would possess distinct advantages over all competitors.

Under the terms of the Ford offer, the auto magnate could distribute any surplus power produced at Muscle Shoals in accordance with his own personal whim. For example, he could furnish power to North Carolina mills and refuse to furnish it to those in South Carolina. He could distribute power in Alabama and decline to distribute it in Mississippi. Thus he would be able to make or break manufacturing enterprises at will.

As has been explained before the Senate Agricultural Committee, the South is at the present time linked up by a rather comprehensive superpower system. By means of this power produced at any point in the superpower zone can be made available anywhere within that zone.

Under the terms of the Federal water-power act, the power produced at Muscle Shoals would be prorated among the industries desiring it. Everybody would get a square deal, no one being given any special privilege. Mr. Ford has so far declined to accept the provisions of the Federal act.

And southern mill

owners are slowly waking up to the fact that if Ford has his way in the matter they would be compelled to make terms with him. The manufacturer who declined to make terms would find that his competitors were obtaining power under very advantageous terms.

[Enterprise, High Point, N. C., April 29, 1924]

PINCHOT'S OPINION

The industrial future of the Southeast to which Pinchot refers is of limitless importance to the section. The development of industry is promising release from the slavery of cotton and tobacco growing and pointing to a future of wealth and happiness. The thoughtless disposal in perpetuity of the greatest force for turning wheels that lines in the Southern States and the second greatest in the Union, to a promoter whose passion has been the enhancement of his own wealth for the past two decades, at least, becomes treachery to the entire region affected.

[The Sun, Valdosta, Ga., April 27, 1924]

CALLS FOR POWER

Witnesses before the Agriculture Committee of the Senate are now demanding that the Government operate the power plants at Muscle Shoals unless there is a guaranty under the contracts that there be an adequate distribution of power among the States which need it. The men from the Carolinas, as well as those from Mississippi and other locations, testified that the general sentiment was against any disposition of the shoals which did not insure a wide distribution of energy. This is the position for which all advocates of a public user have been clamoring. There is no special_method favored by the power that should go to the widest possible number of users.

That South Carolina and North Carolina, in which much of the power resident in the shoals has its source, should have the streams dammed up and harnessed seems absurd. The great volume of water flowing by the rapids at the shoals from many different streams and localities, and they need power as much as any other part of the country. The State of Mississippi is almost entirely unserved by water power, and part of Georgia are in need of more electrical energy.

The shoals were once a part of Georgia, and here again is an anomaly. If the shoals are not made to furnish power to the State which once owned them, and if they can not serve the States through which the rivers flow to make the shoals a great source of power, for what should they be used? Surely not for ornamental purposes or for any private use. They are the property of the Nation, and as the statements made to the Senate committee indicate the Government should either operate power plants there for the benefit of the people as a whole or see that whoever does operate the plants furnishes power to the largest number possible of the people.

STATEMENT OF MR. JOHN A. McSPARRAN, MASTER OF THE STATE GRANGE OF PENNSYLVANIA

Mr. MCSPARRAN. My name is John A. McSparran, Furniss, Pa., Master of the State Grange of Pennsylvania.

Mr. Chairman and members of the committee, the executive committee of Pennsylvania State Grange have been considerably concerned over the developments of this Muscle Shoals situation in Congress. We have given some study to the Ford offer and do not believe that it is definite enough to cover the situation that it is supposed to cover. In the first place, it is opposed to the conservation policies that the grange has fought for for 20 years. We do not believe that any of the public resources of the country should be given over to anybody for a hundred years. Fifty years is almost two generations,

and even that is too long. Neither should they be given over to a private business. In order to meet the needs which these natural facilities ought to meet, they ought to be put in the hands of people who will distribute them, under such terms as that the distribution will be maintained down through the years.

The organization of the grange usually does not come out for any particular bill, but enunciates principles. The State Grange of Pennsylvania met just prior to the National Grange, and therefore we could not get any action of our State grange after the Natioanl Grange had acted.

Doctor Atkeson, you did not put in the resolution of the National Grange in this record here, did you?

The CHAIRMAN. The doctor has not been heard yet.

Mr. MCSI ARRAN. Then I will put it in, because our executive committee since that time has reindorsed it as the action of the Pennsylvania State Grange. It is rather short, and I will read it:

Resolved, That we repeat our former declaration that this great development of natural resources should be leased or sold by the Government to the highest bidder on such terms as will best safegurd and protect the interests of the public, or that it be operated by the Government at once. To do this effectively, measures should be enacted into law which guarantee, first, that nitrate and fertilizer production to the capacity of the project will be continually carried on; second, that the entire project be made available for military uses in times of war; third, that experimental and research work be established to develop and to discover new and approved methods for fixing nitrogen and manufacturing fertilizers; fourth, that sufficient power shall be guaranteed in times of peace⚫ to operate the project at its full capacity; fifth, that provision be made for reimbursing the Government the additional money required to complete the project. The Ford offer is very hazy about this question of fertilizer, because of the fact that it says that it will manufacture fertilizer on demand. Well, if there is not the demand it will not be manufactured. The thing that is needed in this country is to have a means of getting nitrates that will continually give to the United States a place to get their nitrates. We are dependent now on the Chilean nitrates, and we will need more and more nitrates as the years go by, in spite of the fact that better systems of farming will be adopted in certain sections of the country where they are continuously farming the same piece of land with the same crop. Therefore there ought to be experimentation, in view of the fact that we do not have any natural beds, or at least have never discoverd any natural beds, such as the Chilean nitrate beds. Therefore there should be a place, and it seems to me that Muscle Shoals would be a very fit place, where that great plant which can be available in time of war for use in the manufacture of explosives, where there will be a giant experimentation for the fixation of nitrogen in some form, by means of which we shall always have within our own borders a constant supply in time of peace for fertilizer, and an adequate supply in time of war for explosives.

The CHAIRMAN. I would like to call your attention right there, Mr. McSparran, to the fact that in the bill which is pending before us, introduced by me, for Government operation, provision is made for that identical thing, for the greatest experimentation ever known in the history of the world on the part of the Government.

Mr. McSPARRAN. I notice here that the first guaranty is that the nitrate and fertilizer production to capacity thereunder will be continuously carried on. Of course, if the Ford project should go