Evening star., 1954-11-14
Committees 1913 Vote Clears
Dixon Yates Power Contract,
Defeats 30-Doy oiting Period
U. S. Adequately
Protected, Sqys
Congress Group
By Joseph A. Fox

tlon yesterday won the nrSt
round in the Dixon n-Yates power
slugfest. The Senate-H o u e
Atomic Energy Committee voted
10 to 8 for immediate clearance
Of the contract between the util-
ity combine and the Atomic En-
ergy Commission, which other
wise would have been required
to lie 80 days before the next
Congress.
Dividing strictly on party lines,
the committee found the con-
tract adequately" protects the
interests Of the Government.
The controversial power group,
operating as the Mississippi VAL
ley Generating Co., still needs
Securities Exchange Commission
approval of its corporate set-up
before it goes into business.
Spokesman said the necessary
application will be filed this
week.
There is a congressional hurdle
Of undetermined proportions
also to be surmounted. The
Democrats have warred on the
deal since it first came into the
open several months ago. Their
leaders are threatening to try to
cut off the funds needed to make
1t effective-some $19 million
annually.
$107 Million Steam Plant.
Under the contract signed this
past week, Dixon Yates will build
a SLOT million steam plant at
West Memphis, Ark, to deliver
power to the Tennessee Valley
Authority system in the Memphis
area. This power would replace
iva power going into atomic in
stallations further up the line.
The deal with the private
utility group was negotiated after
President Eisenhower had turned
down a IVA proposal to build
another in its own chain Of steam
plants at Fulton. just north of
Memphis, to supply the power.
Throughout the 11-state area
Of the Tennessee Valley. pub
lie power advocates have aSsailed
the move as the first step toward
destruction Of the IVA. This
New Deal creation put the pri-
vate power industry out Of busi-
ness in that section. where rates
are far under the level Of the
national average.
President Eisenhower made q
personal appeal this past week
for waiver Of the waiting period
to speed work on the West Mem
phis project, which is scheduled
to, be operative in 1857. 1t is ex-
pected that the 100000 kiloWatts
it will generate will be needed
by then.
Hidden Profits" Seen.
The waiver vote yesterday vir-
tually was a foregone conclusion
after Republicans had won an
earlier test on shelving the con-
tract until next year. But Chair
man Cole, Republican, of New
York, deferred final action for q
laSt-minute attack on the con-
tract by Senator Kefauver, Dem
ocrat, Of Tennessee, who de-
nounced the hidden profits"
possible under the arrangement.
Despite the ostensible $500. 900
ceiling on profits incorporated in
the contract, "the sky still seems
to be the limit" Senator Ke-
fauyer said.
Another blast came from Rep
resentative Holifield. Democrat.
of California, who has been
carrying the ball for the opposi-
ton since the hearings started
10 days ago.
: Declaring that it was the first
time the Committee had divided
on political lines on any issue,
Mr.. Holifield said the day Con-
gress opens, he will introduce a
concurrent resolution to cut off
funds.
Democrats from the Senate
and House Appropriations Com
mittees who will be in control
in the next Congress also have
threatened trouble.
Mr.. Holified criticized the ma
jority for cutting off the hear
ings before all the witnesses he
wanted could be marshalled.
He said that he had proposed
to investigate the genesis of the
s deal by questioning Eugene H.
Dixon, president of Middle South
Utilities. and Eugene A. Yates.
chairman of the board Of the
Southern Company. the prime
movers. He also wanted to talk
tSee DIXoN-YATEs, Page A-5.)
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