Evening star., 1955-07-22
By JOSEPH A. FOX

The Senate probe OF the
IDixon-Yates power contract had
lblossomed today into q full-scale
Ifeud between the investigating
subcommittee headed by Senator
IKefauver, Democrat Of Tennes-
tsee, and key figures in the Eisen-
hover administration.
/ Blocked in efforts to get Presi-
Idential Assistant Sherman
Adams on the witness stand. and
Ito extract a full accounting of
contract negotiations from other
Ioficials. the subcommittee was
lhurling implied charges Of
i"crime and corruption" in the
general direction of White House,
Budget Bureau, Atomic Energy
Commission and Securities Ex-
lchange Commission as it took a
breathing spell from the hear
Iings in preparation for renewed
attack next week.
Invitation Declined
In a hectic session yesterday,
the subcommittee:
/ /. Was turned down on an
invitation" to Mr.. Adams to
testify about his intervention
last June which brought about
q three-day suspension of SEC
hearings on Dixon Yates A.
nancing.
| 2. Uncovered the fact that the
Budget Bureau suggested" that
the atomic commission elimi-
nate reference to the participa-
ton of First Boston Corp.
Iofficials when compiling - for
1publication-a chronology of the
Dixon Yates negotiations.
3. Drew a rejection from the
atomic commission on a request
for certain documents bearing
on the contentious power deal
which the commission insists
were confidential-hence, "privi-
legged"
/ 4. Encountered difficulty in the
examination of two Acc off,
cials-former Brig. Gen. Ken
meth E. Fields, general manager,
land Richard w. Cook, his deputy
On the side. Senator Ander-
son, Democrat, New Mexico,
chairman of the Senate House
Joint Atomic Energy Committee,
who has been sitting with
the subcommittee, assailed the
Budget Bureau in a Senate
speech for what he said was a
deliberate cover-up" of facts
surrounding the Dixon Yates
negotiations in which 1t took a
leading part.
I Information Withheld
The Anderson blast was
prompted by a communication
from the Atomic Commission
listing eight occasions on which
First Boston Corp. representa-
Itives had sat in on Dixon-Yates
negotiations. This information
had been withheld in the Com
missions chronology issue last
August when the Dixon-Yates
row was getting under way. The
men involved were Adolphe H.
IWenzell, a vice president. who
had served as a Budget Bureau
power consultant while on the
payroll of the banking house,
and Paul L. Miller. an as
Isistant vice president Mr.. Wen
Izell's dual role has just been
under inquiry by the subcom-
mittee.
The atomic commission said
THAT neither he nor Mr.. Miller
were considered principals" in
Idevising the arrangement by
which the Dixon Yates syndi-
'cate-under a contract with the
AEC-was to build a SLOT mil
lion steam plant at West Men,
Iphis, Ark, to furnish power to
the IVA at nearby Memphis,
Tenn, as replacement for iva
power going to atomic installa-
ItionS.
i President Eisenhower has just
|ordered the contract Cancelled,
because Memphis refused to take
this power.
/ First Boston was chosen to
handle Dixon-Yates financing,
and subcommittee members
quickly picked a flaw in the
atomic commissions contention
that Mr.. Wenzell was not a
4 principal" in the contract ne
Igotiaticns by pointing to the
part the Commissions own rec
ords showed he had taken.
Dispatching a letter to Mr..