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COMMITTEE ON AGRICULTURE AND FORESTRY
CHARLES L. McNARY, Oregon, Chairman GEORGE W. NORRIS, Nebraska.
ELLISON D. SMITH, South Carolina. ARTHUR CAPPER, Kansas.
JOSEPH E. RANSDELL, Louisiana. PETER NORBECK, South Dakota.
JOHN B. KENDRICK, Wyoming. LYNN J. FRAZIER, North Dakota.
J. THOMAS HEFLIN, Alabama. ARTHUR R. GOULD, Maine.
THADDEUS H. CARAWAY, Arkansas. JOHN THOMAS, Idaho.
BURTON K. WHEELER, Montana. H. D. HATFIELD, West Virginia.
ELMER THOMAS, Oklahoma.
HENRIK SHIPSTEAD, Minnesota.
HELEN K. KIEFER, Clerk
WEDNESDAY, MAY 29, 1929
UNITED STATES SENATE,
Washington, D. C. The committee met, pursuant to the call of the chairman, at 10.30 o'clock a. m., in the committee room, Senate Office Building, Senator Charles L. McNary presiding.
Present: Senators McNary (chairman), Norris, Thomas of Idaho, Frazier, Norbeck, Capper, Walcott, Heflin, Thomas of Oklahoma, Ransdell, and Kendrick.
• The CHAIRMAN. The committee will be in order. The meeting this morning is to consider Senate Joint Resolution 49, introduced by Senator Norris, to provide for the national defense by the creation of a corporation for the operation of the Government properties at and near Muscle Shoals in the State of Alabama, and for other purposes.
At this point I will request the reporter to insert in the record a copy of the resolution.
(The said joint resolution is here printed in full, as follows:)
[S. J. Res. 49, Seventy-first Congress, first session]
JOINT RESOLUTION To provide for the national defense by the creation of a corpora
tion for the operation of the Government properties at and near Muscle Shoals in the State of Alabama, and for other purposes
Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That for the purpose of maintaining and operating the properties now owned by the United States in the vicinity of Muscle Shoals, Alabama, in the interest of the national defense and for agricultural and industrial development, and to aid navigation and the control of destructive flood waters in the Tennessee River and Mississippi River Basins, there is hereby created a body corporate by the name of the “Muscle Shoals Corporation of the United States ” (hereinafter referred to as the corporation). The board of directors first appointed shall be deemed the incorporators and the incorporation shall be held to have been effected from the date of the first meeting of the board. This act may be cited as the “Muscle Shoals act of 1929."
SEC. 2. (a) The board of directors of the corporation (hereinafter referred to as the board) shall be composed of three members, not more than two of whom shall be members of the same political party, to be appointed by the President, by and with the advice and consent of the Senate. The board shall organize by electing a chairman, vice chairman, and other officers, agents, and employees, and shall proceed to carry out the provisions of this act.
(b) The terms of office of the members first taking office after the approval of this act shall expire as designated by the President at the time of nomination, one at the end of the second year, one at the end of the fourth year, and one at the end of the sixth year, after the date of approval of this act. A successor to a member of the board shall be appointed in the same manner as the original
members and shall have a term of office expiring six years from the date of the expiration of the term for which his predecessor was appointed.
(c) Any member appointed to fill a vacancy in the board occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term.
(d) Vacancies in the board so long as there shall be two members in office shall not impair the powers of the board to execute the functions of the corporation, and two of the members in office shall constitute a quorum for the transaction of the business of the board.
(e) Each of the members of the board shall be a citizen of the United States and shall receive compensation at the rate of $50 per day for each day that he shall be actually engaged in the performance of the duties vested in the board, to be paid by the corporation as current expenses, not to exceed, however, one hundred and fifty days for the first year after the date of the approval of this act, and not to exceed one hundred days in any year thereafter. Members of the board shall be reimbursed by the corporation for actual expenses (including traveling and subsistence expenses) incurred by them while in the performance of the duties vested in the board by this act.
(f) No director shall have any financial interest in any public-utility corporation engaged in the business of distributing and selling power to the public nor in any corporation engaged in the manufacture, selling, or distribution of fixed nitrogen, or any ingredients thereof, nor shall any member have any interest in any business that may be adversely affected by the success of the Muscle Shoals project as a producer of concentrated fertilizers.
(g) The board shall direct the exercise of all the powers of the corporation.
(h) All members of the board shall be persons that profess a belief in the feasibility and wisdom, having in view the national defense and the encouragement of interstate commerce, of producing fixed nitrogen under this act of such kinds and at such prices as to induce the reasonable expectation that the farmers will buy said products, and that by reason thereof the corporation may be a self-sustaining and continuing success.
SEC. 3. (a) The chief executive officer of the corporation shall be a general manager, who shall be responsible to the board for the efficient conduct of the business of the corporation. The board shall appoint the general manager, and shall select a man for such appointment who has demonstrated his capacity as a business executive. The general manager shall be appointed to hold office for ten years, but he may be removed by the board for cause, and his term of office shall end upon repeal of this act, or by amendment thereof expressly providing for the termination of his office. Should the office of general manager become vacant for any reason, the board shall appoint his successor as herein provided.
(b) The general manager shall appoint, with the advice and consent of the board, two assistant managers who shall be responsible to him, and through him, to the board. One of the assistant managers shall be a man possessed of knowledge, training, and experience to render him competent and expert in the production of fixed nitrogen. The other assistant manager shall be a man trained and experienced in the field of production and distribution of hydroelectric power. The general manager may at any time, for cause, remove any assistant manager, and appoint his successor as above provided. He shall immediately thereafter make a report of such action to the board, giving in detail the reason therefor. He shall employ, with the approval of the board, all other agents, clerks, attorneys, employees, and laborers.
(c) The combined salaries of the general manager and the assistant managers shall not exceed the sum of $50,000 per annum, to be apportioned and fixed by the board.
SEC. 4. Except as otherwise specifically provided in this act, the corporation(a) Shall have succession in its corporate name.
(b) May sue and be sued in its corporate name, but only for the enforcement of contracts and the defense of property.
(c) May adopt and use a corporate seal, which shall be judicially noticed. (d) May make contracts, but only as herein authorized. (e) May adopt, amend, and repeal by-laws.
(f) May purchase or lease and hold such personal property as it deems vecessary or convenient in the transaction of its business, and may dispose of any such personal property held by it.
(g) May appoint such officers, employees, attorneys, and agents as are necessary for the transaction of its business, fix their compensation, define generally