Evening star., 1954-11-12
No Lag in Work
Despite Pact,
Strauss Says.
Congress Committee
Studies Changes in
Dixon-Yotes Plan
By [. Edoor Primo
By |. Edgar Primo

SAAStAA AAAeNAA A4SWAo As OU1 q AoS
said today that the Atomic En-
ergy Commissions weapons pro-
gram is going ahead as well as,
ever despite the ong-raging bat
tie over the Dixon Yates private
power contract.
Mr.. Strauss statement came
in response to a question by SEN
ator Anderson. Democrat. of New
Mexico, during a hearing before
the Joint Committee on Atomic
Energy.
Senator Anderson, who is
slated to head the joint commit
tee in the new Congress, said it
had been his impression in re-
cent visits to the Los Almos and
Sandia atomic installations that
the work there was going ahead
very rapidly" although there is
a keen interest in the Dixon
Yates matter.
Last week, Acc Commissioner
Thomas E. Murray, the lone
member appointed by President
Truman, declared the contract
controversy had kept the chair
man and his staff and the other
members from devoting their
full time to their most important
responsibilities, that of seeing
the United States remain ahead
of the Soviet Union in atomic
weapons development.
Changes in Pact Studied.
After Mr.. Strauss left the stand
the committee began a review of
six late changes made In the
contract before It was signed
yesterday. One of the new pro-
visions puts a limit Of $500, 900
a year on the overall earnings of
the Mississippi Valley Genera
ting Co., the firm organized by
the Dixon Yates combine to
build the $107 million steam gen.
Grating plant at West Memphis,
Ark.
On completion of the review
OF the new provisions, the COM
mittee will call Acting Controller
General Frank Weitzel for testi-
mony.
Committee Chairman Cole of
New York said he expected a
vote by this evening-or tomor-
row morning at the latest-on
President Eisenhower's request
that the committee clear the
contract at once, instead Of hold
ing it in the next session of
Congress for 80 days.
U. s. Can Take Over.
"The rug has been pulled from
under the opponents" he said
late yesterday after execution of
the contract, which was revised
IN its final form to give the Gov
ernment the right to take over
the new power facilities it pro-
vides for the Tennessee Valley
within three years.
THANK God for the oppo-
nents! We at least got some
| Improvement in It'll" shot back
Representative Price, Democrat,
of Illinois, a leader in the fight
on the contract.
Committee Republicans, with
their 1913 majority, beat DEM
ocratic motion to shelve the con-
tract Wednesday and Mr.. Cole,
while not predicting victory on
the final vote, cheerfully said,
i hope So," when asked If he
thought this margin would be
retained.
He said he felt the final modi-
fications had eliminated objec-
tions against the contract that
supporters might have raised
but he didn't expect these to
sway any Democrats.
II think the political scars
still remain" he said.
Backed by Acc Member.
The contract, which even got
the backing of Mr.. Murray, one
OF its foes of long standing, pro-
vides for Dixon-Yates, operating
as the Mississippi Valley Gen.
Grating Co., to construct q $107
million steam plant at West
Memphis, Ark, to supply power
to the IVA grid in the Memphis
area, as replacement for iva
power used BY atomic installa-
tions In the Paducah- Oak Ridge
set-up.
/ It has been fought bitterly
every foot Of the way by public
power forces, and the completed
compact represented q conces-
sion to points raised by the
/ opposition.
Even Congressional approval
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