The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1954-10-25
Sen. LANCER Says Arkansas
Power Company Made Major
Blunder In Filing Huge Suit
BY Q. MILTON KELLY

Power & Light Co. made q ma
jor blunder" in filing q two mil
lion dollar SANDER suit against a
witness in a Senate investigation
Of the controversial Dixon-Y ates
power contract.
LANCER, chairman of a senate
antimonopoly subcommittee carry
ing on the probe, told a newsman a
''Wall Street crowd" prompted the
filing of the suit in Little Rock
with the clear intent Of intimida-
ton" of witnesses critical Of the
proposed contract, which has be-
come an issue in the current po-
litical campaign. LANCER did not
spell out who he meant by the
term "Wall Street crowd"
The North Dakota Republican
predicted that public reaction to
the suit will be swift and negative.
Defendant in the SANDER suit is
Arthur E. Mclean, little Rock
banker who told the LANCER SUBJ
committee Thursday that Arkansas
Power was ''the most corrupt and
ruthless corporation that ever oper-
ated within the bounds Of the
state"
Arkansas Power officials indi-
Gated the suit-which accuses the
banker of making malicious, false
and slanderous statements about
AP&Lr--is not based on McLean's
Senate testimony, which is privi-
legged, but on his past statements
in a years long feud with the COM
pany.
Informed here of the legal ac-
ton against him, Mclean said II
welcome the suit. =. They are
asking for. the works-they're go
ing to get it,"
LANCER reacted explosively when
he heard of the suit. Pounding the
table, the senator shouted 1--WE are
not going to allow Dixon-Yates or
anyone else to bluff, scare or in
timidate witnesses" The North Da-
kota senator said his subcommittee
would assign its chief counsel, Sid
ney Davis, and hire former Gov.
Sid McMath of Arkansas to help
with McLean's defense, if this can
be done. legally. He ordered his
staff to prepare an opinion on this
point. IS.
McMath testified last week that
AP&L used money and influence
in 1852 to defeat his try for a third
term in the Arkansas State House.
This happened, McMath said, be-
cause he favored the building Of a
steam power generating plant by a
group Of cooperatives.
McMath said the private utility
was ''the most powerful political
influence in Arkansas :. an I'M
healthy influence, not conducive to
good government"
Arkansas Power is a wholly
owned subsidiary Of Middle South
Utilities Inc, one Of two firms
which make up the Dixon-Yates
power group. Langer's subcommit-
tee has been looking into a pro-
posed government contract under
which the Dixon Yates group
would build a 107-miIlion dollar
power plant at West Memphis,
Ark, to serve an area of east
Tennessee over Tennessee Valley
Authority lines.
This private power would re-
place iva electricity which would
be used instead at government
atomic plants in Tennessee and
Kentucky. This contract. though
not yet signed, has been approved
in form by the Acc and is to be
scrutinized next month by the Sem
ate-House Atomic Energy Commit
tee.
Critics contend the Dixon Yates
proposal is an entering wedge by
those who seek ultimate destruc-
ton of the iva. The projects de-
tenders say it is the cheapest way
to get the needed power.
LANCER announced he will seek
a Senate investigation of how well
the Holding Company Act is func-
tioning as q curb on monopoly
practices In the public utility field.
After recessing the hearing in
definitely late Thursday, LANCER
said In a statement there has
been considerable testimony that
the Holding Company law is no
longer serving It's proper function
lat least insofar as the Dixon
companies are involved"
Middle South is headed by Edgar
H. Dixon. Another Of its subsidi-
aries is the Mississippi Power &
Light Co. Mississippi Power, too,
has come under fire before the
LANCER group.
McMath testified the Holding
Company Act is not accomplishing
/, its purpose, and said it Is "mak-
ing possible monopolies detrimen-
tai to my state" He recommended
tightening the act or its enforce
ments, or both.
In his statement, LANCER cues.
toned whether the government
should enter into long term con-
- Ss,,,;@I, 49,, 49,