Evening star., 1954-10-23
LANCER Charges Suit.
By Power Firm Is
Intimidation Move
BY m. A..oeIo..d Press

Senator LANCER, Republican.
OF North Dakota said today the
Arkansas Power 6s Light Co,
made a major blunder" In
filing 50 million slander suit
against a witness in a Senate
investigation Of the controver-
sial Dixon-Yates power con-
tract.
Senator LANCER, chairman Of
the Senate Autobiography Sub
committee carrying on the
probe, told newsman a wall
Street crowd" prompted the
filing Of the suit in Little Rock
with the clear intent Of intimi-
dation" of witnesses critical Of
the proposed contract, which
has become an issue in the cur
rent political campaign. Senator
LANCER did not spell out who he
meant by the term wall Street
crowd"
The North Dakota Republican
predicted that public reaction
to the suit will be swift and
negative.
Called Ruthless.
Defendant in the slander suit
Is Arthur E. Mclean. Little
Rock banker who told the LANCER
subcommittee on Thursday that
Arkansas Power was "the most
corrupt and ruthless corpora
tion that ever operated within
the bounds of the State"
Arkansas Power officials indi-
Gated the suit-which accuses
the banker of making malicious,
false and slanderouS statements"
about A. p. & Lis not based
on Mr.. McLean's testimony,
which is privileged. but on his
past statements in a years-long
feud with the company.
Informed here of the legal
action against him, Mr.. Mclean
said. II welcome the suit. i
They're asking for the works
they're going to get it."
Senator LANCER reacted explo-
sively when he heard of the suit. |
Pounding the table, the Senator |
shouted, eve are not going to
allow Dixon-Yates or any one
else to bluff. scare or intimidate
witnesses" The North Dakota
Senator said his subcommittee
would assign its chief counsel,
Sidney Davis, and hire former
Gov. Sid McMath of Arkansas
to help with Mr.. McLean's de-
fense, if this can be done legally.
He ordered his staff to prepare
an opinion on this point. |
Charges Animosity.
Mr.. McMath testified yester-
day that A. P. & L. used money
and influence in 1852 to defeat
his try for a third term in the
Arkansas State House. This
happened, Mr.. McMath said. be-
cause he favored the building Of
q steam power generating plant
by a group Of co-operatives.
Mr.. McMath said the private
utility was "the most powerful.
political influence in Arkansas |
an unhealthy influence,
not conducive to good govern
ment."
Arkansas Power is a wholly
owned subsidiary of Middle
South Utilities. Inc, one of two
firms which make up the Dixon
Yates power group. Senator
Langer's subcommittee has been
looking into a proposed Govern
ment contract under which the
Dixon-Yates group would build
a $107 million power plant at
West Memphis. Ark, to serve an
area of East Tennessee over Ten
nessee Valley Authority lines.
Investigation Sought.
Critics contend the Dixon
Yates proposal is an entering
wedge by those who seek ultimate
of the iva. The
projects defenders say it is the
cheapest way to get the needed
power.
Senator LANCER announced he
will seek Senate investigation
Of how well the Holding Com
pany Act is functioning as a curb
OH monopoly practices in the
public utility field.
After receSsing the hearing in
definitely late yesterday, Senator
LANCER said in a statement
there has been considerable
testimony that the holding COM
pany law is no longer serving its
proper functional least insofar
as the Dixon companies are in
yolved."