For several years the Congress has considered the erection of a dam on the Colorado River for flood-control, irrigation, and domestic water purposes, all of which ma properly be considered as Government functions.  There would be an incidental creation of water power which could be used for generating electricity.  As private enterprise can very well fill this field, there is no need for the Government to go into it.  It is unfortunate that the States interested in this water have been unable to agree among themselves.  Nevertheless, any legislation should give every possible safeguard to the present and prospective rights of each of them.

The Congress will have before it, the detailed report of a special board appointed to consider the engineering and economic feasibility of this project.  From the short summary which I have seen of it, 11 judge they consider the engineering problems can be met at somewhat increased cost over previous estimates.  They prefer the Black Canyon site.  On the economic features they are not so clear and appear to base their conclusions on many conditions which can not be established with certainty.  So far as I can judge, however, from the summary, their conclusions appear sufficiently favorable, so that I feel warranted in recommending a measure which will protect the rights of the States, discharge the necessary Government functions, and leave the electrical field to private enterprise.

MUSCLE SHOALS

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.