Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-09-23
Dixon-Yates Dispute
Revived by Charge
OF Doctored Books

LrOVeTSy 1ldIGQ up again bOUdy
following statements by a. top
official of a subsidiary firm that
he had been high presumed" to
keep false financial records.
His. disclosures brought re-
newed demands from Democrats
in Congress that President
Eisenhower halt action on the
Dixon-Yates contract. The
contract is designed to furnish
power to the Tennessee Valley
Authority in return for iva
power given the atomic energy
plant at Paducah, KY.
The official, fired yesterday for
his statements, Is j. P. Stieten-
roth, former secretary-treasurer
of Mississippi Power g. Light Co.,
a subsidiary of Middle South
Utilities, Inc. a holding COM
pany which is one of the prin-
cipals in the Dixon Yates utility
group.
Appeals to SEC.
Mr.. Stietenroth announced
yesterday in Jackson, Miss, that
he had wired the Securities and
Exchange Commission to disre-
gard all financial data in Middle
South's application for q stock
issue. Funds from the stock
sale would finance a steam gen.
Grating plant at West Memphis,
Ark.
Mr.. Stietenroth, a certified
public accountant and engineer
who has been with Mississippi
Power & Light for 26 years, said
he was under the domination
Of others in preparing and sub
hitting the figures and data"
II have no confidence in the
accuracy of the figures and
data" his wire stated, and
think it is time to call q halt.
I do not want to Intentionally
or unintentionally find myself
guilty of violating the law
and thus expose myself to
criminal liability :"
Mr.. Stietenroth issued an
earlier statement Sunday in
which he charged that Missis-
sippi Power & Light is domi-
mated by Middle South and
wall Street" and is overcharg-
ing Mississippi customers so the
"big fish can get more profit"
He was suspended following
this statement and was fired
yesterday by the Mississippi
Power & Light Board of Direc-
tors.
False Entries Charged.
In his telegram to the SEC,
Mr.. Stietenroth said false entries
were recorded at the coercive
insistence of an officer of Middle
South Utilities, Inc. when I am
high pressured to the point
where I have no confidence in
the accuracy of the figures and
data, then I think it is time to
call a malt"
Mr.. Stietenroth's charges
brought demands from three
Democrats, Senators Hill Of Ala
barna and Kefauver of Tennes-
see and Representative Holifield
of California, for an immediate
further investigation of the
Dixon-Yates matter.
Senator Hill wired the Presi-
dent that MIR. Stietenroth's
charges are of "the utmost sig
nificance urging that he i'm
mediately withdraw his order for
execution of the Dixon-Yates
contract.
Senator Kefauver released
copies of letters he has written
the SEC, the Federal Power
Commission and the New York
Stock Exchange noting Mr..
Stietenroth's charges against
Mississippi Power & Light and
asking whether Mr.. Stieten-
roth's charges, If true, indicated
a violation of regulations by the
Mississippi concern.
Details Accusations.
"Stietenroth charged" Senator
Kefauver wrote. that the COM
pany keeps two sets of books,
one in Mississippi and the other
in New York, and that he. as
local secretary-treasurer, could
not even see the New York set.
He said that all policies are
directed by Middle South Util-
tiles. holding company of Mis-
sissippl Power and Light Co., and
the company which has been
designated by the President along
with the Southern Co. to build
a steam plant furnishing power
to IVA. He charged that the
local officers are mere puppets
and that the company over
charges the people of Mississippi
millions of dollars in rates."
Representative Holifield said
he has sent a letter to Chairman
Cole, Republican. of New York
of the Joint Atomic Energy Com
mittee proposing a full-scale in
vestigation of the entire Dixon
Yates matter. Mr.. Cole said he
expected the committee would
fully and deliberately consider
Mr.. Holifield's proposal.
Meanwhile, the American Pub
lie Power Association announced
here that Middle South has in
dicated to SEC that it does not
intend to use any of a proposed
,000-share issue of common
stock for investment in the
Dixon-Yates plant at West
Memphis. unless this action is
specifically authorized by the
commission.
The association earlier had re-
quested SEC to hold public hear
ing on the proposed stock issue.
Democrats | end