At  Muscle  Shoals  the  question  was  not  one  of  getting
into  government  ownership  but  of  getting  out  of  a  situa-
tion in  which  we  were  already  heavily  involved.  At  the
end  of  the  war  the  government  found  itself  in  possession
of  great  nitrate  and  power  plants,  representing  an  in-
vestment of  $150,000,000  and  the  question  was  what
to  do  with  them.  From  the  standpoint  of  public  policy,
in  view  of  the  importance  of  nitrate  in  the  manufacture
of  munitions  as  well  as  its  peacetime  value  as  fertilizer,
it  seemed  necessary  to  keep  the  plants  on  a  productive
basis,  but  at  that  time  the  country  was  reluctant  to  see
the  government  engage  in  large  business  undertak-
ings and  Washington  sought  to  dispose  of  the  prop-
erties. Bids  were  entertained  from  various  sources,
including  a  proposal  from  Henry  Ford,  but  all  were
rejected  on  account  of  inadequacy.  In  the  meantime  it


236  YEARS  OF  PLUNDER

came  to  be  apparent  that  Muscle  Shoals  was  probably
the  greatest  single  power  site  east  of  the  Rockies.  The
primary  installation  will  develop  more  power  than  is
now  developed  on  the  American  side  of  Niagara  Falls
and  the  utilization  of  this  power  will  control  the  indus-
trial development  of  the  entire  South,  which  is  enor-
mously rich  in  potentiality.  Should  we  turn  this  natural
resource  over  to  private  exploitation  or  let  the  govern-
ment develop  it  for  the  benefit  of  the  inhabitants  of  this
district?  That  was  the  question.  Twice  Congress  an-
swered it  in  favor  of  government  development  and  twice
the  bill  was  killed,  once  by  a  pocket  veto  of  Coolidge  and
once  by  outright  veto  of  Hoover.
From  the  first  the  power  interests  opposed  govern-
ment operation  with  every  resource  at  their  command.
