Evening star., 1955-02-04
Senate Funds Group
Is Headed by Foe Of
Dixon-Yates Contract

n-Yates Contract
Opponents of the Dixon-Yates
contract for a private power
plant in the Tennessee Valley
area strengthened their position
today when the Senate Appro-
priations Committee set up a
special subcommittee headed by
Senator Hill, Democrat, of Ala
bama. who opposes the contract,
to handle the budget of the
Atomic Energy Commission and
the Tennessee Valley Authority.
The Acc entered into the con-
tract under which the Dixon and
Yates private utility group will
build a plant at West Memphis,
Ark, to supply iva users with
current which the Acc is with
drawing from the iva system
to operate atomic plants.
Democrats in Congress have
indicated they will try in every
possible way to block the con-
tract, and one of the ways would
be through the appropriating
power.
Vital Budget Request.
One opponent of the contract
pointed out today that the new
Eisenhower budget requests an
appropriation of $6.5 million to
enable IVA TO build transmits
sion line to the center of the
Mississippi River to receive the
power from the proposed Dixon
Yates plant. He said that with
out this connecting line the con-
tract could not be carried out,
and this budget item would re-
quire approval of the new sub
committee.
1t became necessary for the
Senate Appropriations Commit
tee to reshuffle the agencies ham
ding various appropriations bills
to coincide with a regrouping
already ordered. by the House
appropriations Committee.
In that process IVA and Acc
were taken from the independ-
ent Offices bill and placed in the
public works bill. The Senate
committee decided today, how
ever. to split the public works
items into several subcommittee.
The Democrats named as
chairmen of other appropriation
bills for the next two years are ::
Agriculture, Russell of Geor-
gia; commerce, Holland of Flor
ida; defense, Chavez OF New
Mexico; independent Offices,
Magnusen of Washington; in
terror. Hayden of Arizona; labor,
health, education and welfare,
Hill of Alabama: legislative,
Clements of Kentucky: State,
Justice and the judiciary. Kill
gore of West Virginia, and Treas
ury and Post Office. Robertson
of Virginia.
Head Special Groups.
Senator Hayden was named
chairman of a special subcom-
mittee on reclamation projects,
and Senator Kerr of Oklahoma
to head a special subcommittee
on rivers and harbors under
the public works bill.
Meanwhile, attorneys for the
Dixon Yates power group say
disapproval by a congressional
committee is a boo" that
has scared no one" from
undertaking the project, but
Senator Gore, Democrat, of
Tennessee said today they are
"whistling in the dark"
The Joint Atomic Energy Com
mittee made the recommenda-
ton last week on a 1913 party
line vote.
Attorneys for the Acc, the
Justice Department, the Securi-
ties and Exchange Commission
and the utility group also said
the committee had no legal
authority to rescind the waiver.
The lawyers argued, in briefs
filed with the SEC, that the
contract went into effect last
December IT. The SEC had asked
for legal opinions before ruling
on preliminary Dixon-Yates pro-
posals for financing the SLOT
million plant.
Joseph Volpe, jr., attorney for
the State of Tennessee and sew
eral organizations opposing the
contract. argued that the COM
mittee's January % action re-
inforced his contention that the
contract is illegal"