Evening star., 1954-10-13
Dixon Yates Contract
viii Never Be Made,
Mitchell Predicts
BY the Asseeiotsd Press

DENVER. Oct. ia predic-
tion that the controversial |
Dixon-Yates contract "is never
going to be made" was voiced
today by Stephen A. Mitchell.
Democratic national chairman. 4
He gave the opinion in an
interview during a brief stop in
Denver to change planes.
That's one thing a Demo-
cratic Congress will keep Eisen-
hover from doing" Mr.. Mitchell
said.
'It is clear to me-" he declared.
that the administration is try-
ing to cover up, stifle and
smother this whole subject" i
Power Plant Proposed. 4
The so-called Dixon Yates
proposal would provide for con-,
struction of SLOT million steam
plant to generate electricity at
West Memphis, Ark. Power from
it would be carried on lines of
the Tennessee Valley Authority
to replace power which will be
used for the Atomic Energy
Commissions installation at
Paducah. KY. i
Several days ago. Kenneth D.
Nichols. Acc general manager,
said the commission has ap-
proved the form of the contract,
but hasn't signed it or made any |
binding commitment.
The Senate-House Committee |
on Atomic Energy has post
poned its hearings on the pro-
posal until after the November |
2 general elections.
Guarantee Reported.
The st. Louis Post-Dispatch |
reported yesterday the contract |
contains provision giving the |
private companies involved "a
virtually risk-free guarantee of |
earning 9 per cent on invested
capital" of $5.5 million.
This is a Presidential prof.
ect." Mr.. Mitchell told reporters.
That's what makes it so shock
ing"
Edward H. Dixon is president
of the Middle South Utilities Co.
and E. A. Yates is chairman of
the board of the Southern Co.,
which figure in the negotiations.
To Speak in Coles District.
Mr.. Mitchell said he is going
into the home district of Rep
resentative Cole, Republican, of !
New York. chairman of the Joint
Committee on Atomic Energy, to
speak.
Maybe we can let his neigh
bors know how he is serving a
policy Of favoritism in this deal
that is so embarrassing to Re-
publicans." Mr.. Mitchell added.
He said the talk probably will
be at Binghamton, N. Y, Octo-
ber %. |
The Post-Dispatch, in a. copy
righted dispatch from Washing
ton by Richard Dudman, said |
it had obtained access to a copy |
of the controversial contract.
Examination of the new draft
gives support to charges of its I
opponents that it provides a
virtually risk-free proposition
for the Dixon Yates group" the
Post-Dispatch said.
Lists Provisions.
The newspaper said examina-
ton of an October draft of the
proposed contract. described as
the ninth draft in three months
of negotiations, disclosed these |
main provisions: !
l. The Dixon- Yates group may |
figure Federal income taxes into
its basic capacity charge" to the |
Atomic Energy Commission, in
Guiding any future increase in
income taxes.
2. Without consent of the Acc, |
the Dixon-YateS group may |
pledge or transfer the contract |
at any time to pay debts con-
nected with construction of the
plant at West Memphis, Ark.
-
is freed of responsibility if it |
ever fails to deliver electricity
because of cause beyond control
of the company"-but the Acc |
must keep up its payments to the !
private group as if service had |