Evening star., 1954-10-29
Dixon Yates Project
AssaiIed by CIappl as
Bid 10 Wreck IVA
By Joseph A. Fox

DH0 ~ UuW6A vA
By Joseph A. Fox
Gordon r. Clapp, former
chairman of the Tennessee VAL
ley Authority, charged today
that the Eisenhower sponsored
Dixon Yates power project "is
the opening step in a program
planned deliberately to destroy
the IVA"
Mr.. Clapp. a Truman ap-
pointee, who was dropped as
IVA head last May when his
term expired loosed his attack
at a hearing before the Anti
Monopoly subcommittee OF the
Senate Judiciary Committee
which Is investigating q plan to
permit the Dixon Yates utilities
combine to cut into IVA terri
tory in the Memphis area.
The plan contemplates that
the private utility group would
service iva customers and cor
responding1y release IVA power
for the Atomic Energy Commits
sion at Paducah, KY. 200 miles
away. k
"Squeeze," Clapp Charges.
Mr.. Clapp was also sharply
critical of the Budget Bureau
and the Atomic Energy Com
mission, which have taken the
lead in fostering the project.
He described these two agencies
as promoters and sponsors Of
a new kind of power supply to-
the Government He accused
them of joining IN a plan ito
squeeze another Government
agency into submission to a
private utility organization.
Mr.. Clapp also hit "these pro-
moters and sponsors for calling
into conference the worst
enemies of the Tennessee Valley
Authority to plan the future of
the IVA" He said the iva was
kept in the dark during these
negotiations.
The Dixon-Yates combine is
made up of Middle South utili-
ties and Southern companies.
Mr.. Clapp licked off a long hist
Of officials of these groups who
fought the establishment of iva
In the Roosevelt administration.
Called Gauge on Rates.
The witness, who now is deputy
city administrator in New York, |
made the point that electric
utilities are of necessity a
monopoly and insisted that it
was wise to have such govern
mental outfits as the iva in |
operation to keep the private
concerns in line on rates and !
services.
He insisted that the private
utilities have been tagging be-
hind the demand for power for
20 years. It recalled that Eugene
A. Yates. chairman of the board
OF the Southern Co., was an of
ficial Of a number of big power
concerns in the South in 1893,
and at that time told a congress
slonal hearing that there was a
surplus of power in the area and
that the new power contemplated
in the iva scheme would be
wasted"
Wrangle Over Records.
Before today's hearing, it de- |
veloped that the subcommittee
and the Securities and Exchange
Commission are wrangling over /
certain records sought by the
Senate group. Correspondence
was introduced to show that
Subcommittee Chairman LANCER,
Republican, of North Dakota had
accused SEC Chairman Ralph
Demmler of being "evasive" on
the matter.
Sidney Davis, counsel for the
subcommittee. brought out that
he had called on the SEC for
some data bearing on the Missis-
sippi Power g. Light Co., one of |
the Middle South affiliates.
According to Mr.. Davis, all the
material sought had not been
given the committee. whose re-
quest. according to the SEC, was
vague"
In response to this dig Chair
man LANCER wrote the SEC: "I
cannot help but feel that your /
reply is evasive."
Chairman Demmler, in turn,
rejected the criticism and asked
for more information. At the
same time, he offered to Coop
crate with the subcommittee
Senator Kefauver, Democrat,
of Tennessee who is sitting in on |
the hearing with Senator LANCER,
suggested that the refusal to turn /
over the information did not jibe
with President Eisenhower's an
nouncement that he wants "all
the information turned on the
table" with respect to the Dixon
Yates controversy"