Evening star., 1954-09-29
Senate Probers Seek
Delay in Approval Of
Dixon-Yates Contract
By J. A. O'Leory

ny - -. ~ @S0by
The monopoly subcommittee
of the Senate Judiciary Com
mittee voted today to ask the
Atomic Energy Commission to
delay approval of the contro-
versial Dixon Yates contract for
a private steam power plant in
the Tennessee Valley area until
the subcommittee completes its
investigation. /
Senator Kefauver, Democrat,
of Tennessee made the motion
after pointing out the subcom-
mittee got no reply to a similar
request two months ago.
Three Members Are Absent.
Chairman LANCER said he
agreed with Senator Kefauver
and announced the motion
passed Three other subcommit-
tee members we're not present.
President Eisenhower has di-
rected the Acc to go ahead with
a 25-year contract for a $107
million plant in West Memphis,
Ark, to furnish power over iva
lines to replace power which iva
will furnish the atomic plant at
Paducah, Ken. The adminiStra-
tion contends this is the most
economical solution, but oppon-
ents, including many Democrats,
fear it is an effort to weaken
the IVA. 4a
The subcommittee continued
It's inquiry over the protests OF
Senator Butler, Republican, nf
Maryland.
Chairman LANCER called tack
to the stand j. D. Stietenroth.
a former official of the Mis-
sissippi Power & Light Co.,
who testified yesterday he
saw some of the documents con-
nected with the Dixon-Yates
contract in New York recently.
The witness said he was fired
not long ago as secretary-treas-
urer of the Mississippi company,
because he tried to break the
. domination which he said Wall
Street exercises over operating
electric power companies in sew
eral Southern States.
Butler Protests.
Before the witness began, Sem
ator Butler protested that If
there is anything wrong with
the Dixon-Y Yates contract it will
be looked into by the Joint
House Senate Atomic Energy
Committee.
Chairman LANCER replied that
the extent to which his subcom-
mittee goes into the contract will
depend on the testimony now
being taken. but he served no.
tice that no one is going to stop
his committee from getting all
the facts.
Although Senator Butler con-
tinued to argue that the con-
tract should be left in the hands
of the Atomic Energy Commit
tee, it became apparent today
the judiciary group will air the
controversy fully. Chairman
LANCER granted Senator Butler
permission to place in the rec
ord statements from the Budget
Bureau an dthe Atomic Energy
Commission giving the admin
istrations side of the contract
whereupon Senators LANCER and
Kefauver said they would call
Budget Director Hughes and
Acc Chairman Strauss for
questioning. Senator Butler is
not a subcommittee member but
is filling in for absent Repub-
lican members.
Protests High Rates.
The subcommittee today heard
j. w. Speck. former Republl-
can candidate for governor OF
Arkansas. who complained that
electric rates in Arkansas are
excessive. The Arkansas Power
and Light Co. is one of the sub
sidiaries of Middle South Util-
tiles Inc. one of the parties tc
the Di&on-Ya contract.
Mr.. Speck said he had not seer
the DiXon-Yates contract but
from what he had read and from
what he knew of the power sit
uation in his State, he was
against it.
When Senator Butler brought
out that the witness was reach
ing a conclusion without having
seen the contract, Chairman
LANCER chimed in:
You are in the same shape
as the committee-we have not
seen the contract either
Answering claims of oppo.
nents of the Dixon Yates con.