Evening star., 1955-07-03
President Seen
AS Winner in
Till
BY GOULD LINCOLN

BY GOULD LINCOLN
President Eisenhower has
emerged rs q winner, not q
loser, In the Dixon-Yates dispute.
according to Senate Republican
Leader Knowland.
The President has won his
hight to prevent the construction
Iof steam power plants by the
Tennessee Valley Authority out
side Of the Tennessee Valley
area. the California Republican
noted.
Also. the Presidents new order
to the Budget Bureau TO re-
examine the Dixon-Yates con-
tract with the Government to
construct d steam power plant at
West Memphis. Ark. does not,
in the opinion Of Senator Know
land, constitute q reversal" on
the part Of the President and his
administration. as charged by
Democrats.
The Senator fiatly rejected
Democratic claims that the Pres
Iident has sustained q defeat over
the Dixon-Yates contract, long
a subject Of controversy. The
Democrats are saying the Presi-
dent was playing into the hands
OF private power interests, and
Senator Kefauver Of Tennessee,
Democrat. has suggested crimi-
nal corruption in the negotiation
LOT the contract.
Bear by Tail
Senator Knowland expressed.
too. q belief that If the Demo-
lcrats-as they now seem anxious
to do-attempt to make a cam
Ipaign issue Of the Dixon-Yates
contract. they may find they
have q bear by the tail.
There are people," said Cen
|ator Knowland, referring to some
OF the Democrats. 'who believe
that the Federal Government
should have q monopoly In the
production and distribution of
electric power. They are the pub
lie power advocates. I do not
think. however, that the Amer
ican people will subscribe to
such a basic doctrine"
In support Of his contention
that the President has won this
battle, Senator Knowland pointed
out that the project of the pub
lie power people. to have steam
power plant constructed by the
iva at Federal expense In Full
ton, Tenn, had been rejected
first by the House in its consid-
Grafton Of the Public Works ap-
preparation bill and then py the
Senate Appropriations Commit
tee.
| PRESIDENTS Order
The Presidents order to the
Budget Bureau to examine anew
the need for the Dixon-Yates
contract. Senator Knowland said.
was due to the present promises
OF the city Of Memphis to build
its own power plant, releasing
the iva from supplying the city
with electric power. The Dixon
Yates plant was promoted in
order to supply Memphis with
electric power. and so release
lTVA to supply more power to the
Atomic Energy Commission,
THE action now taken by the
President" Senator Knowland
continued. docs not constitute
q reversal. Indeed. the President
first suggested long ago that
Memphis build its own power
plant. But at that time Mem
phis did not want to do SO. The
Tennesseans wanted the Gov
ernment to build a plant, with
Federal funds. for an expansion
OF iva. Unable to obtain such
a steam plant at Fulton, as pro-
posed, the Tennesseans have
gone forward with the plan for
Memphis to build its own plant.
thereby making the Dixon
Yates projected plant at West
Memphis unnecessary, so far as
the needs Of Memphis are con-
cerned.
Il believe that the Senate win
approve the action of the Sem
ate Appropriations Committee
In providing. in the Public Works
bill. that Memphis must give
tangible evidence 1t will pro-
ceed with the construction of
the power plant for that city
within 30 days, or the $6.5 mil
lion item in the bill for the con-
struction Of Dixon-Yates trans
mission lines will be available.
Firm Commitment
so far, I have seen nothing
except the passage Of some reso-
lutions by Memphis authorities,
There must be some. firm COM
mitment. II Memphis should de-
eide later that it would not build
the plant, it might reverse the
Held entirely. and there would
be no money to go ahead with
the transmission lines and
Dixon-Yates. I see no reason
why Memphis should fail to give
bona f1de evidence it will build
its plant within 90 days"
Senator Knowland said the
temper Of the committee had
been clearly demonstrated by
the vote Of IA to 9 in defeating
a motion by Senator Hill, Ala
bama Democrat, to strike the
$6.5 million item for the Dixon
Yates transmission lines from the
bill. 1t was then the provision
was adopted Withholding the use
of that money from the trans
mission lines for a period of 80
q