Evening star., 1955-07-11
PledgeSought
From Memphis
On New Plant
End Of Dixon-Yotes
Hinges on City's
Proposal to Build
By the Associated Press

oy tHc AoSOClhteu EIchB
Administration officials study.
ing possible cancellation Of the
Dixon-Yates contract apparent
ly sought ironclad assurance today
that the city of Memphis will
build its own power plant.
They arranged to confer this
afternoon with Memphis Mayor
Frank Tobey and Mai. Thomas
H. Allen. president of the city's
light, gas and water division.
Mr.. Tobey and Maj. Allen
were called here to meet with
Attorney General Brownell
Budget Director Rowland R
Hughes and Chairman Herbert
Vogel Of the Tennessee Valley
Authority.
The three were designated by
President Eisenhower to restudy
the whole matter of the contro-
versial private power contract
after Memphis announced plans
to build its own plant rather
than buy Dixon-Yates power
through the iva.
May Ask Acc Explanation
In other developments:
]. Senator Anderson, Demo-
crat of New Mexico, said that
unless the Dixon-Yates contract
is cancelled quickly members of
the Atomic Energy Commission
will be called on for an explana-
ton.
2. Senator Kefauver, Demo-
crat of Tennessee, said a Senate
anti-monopoly subcommittee he
heads may call former Budget
Director Joseph Dodge as a wit
ness in the inquiry it started last
week and resumes this afternoon.
Senator Anderson, chairman
OF the Senate-House Atomic
Energy Committee, told news
men he had set a meeting of
the group with the Acc for
Wednesday.
He said that If, at that time,
"the Dixon-Yates contract is
still alive. I'm sure members of
the committee will want to know
why. in the light of the decision
of the City of Memphis, it has
not been cancelled" The Acc
signed the contract at President
Eisenhower's direction.
The $l07 million Dixon Yates
plant under construction at West
Memphis. Ark, across the Mis-
sissippi River from Memphis,
was intended primarily to supply
power for the Memphis area,
replacing iva power diverted
to atomic installations.
Seek to Reaffirm Plan
Mr.. Tobey said before leav-
Ing Memphis that he and Mr..
Vogel had corresponded on steps
the city might take to reaffirm
its plays for going ahead with
Its own power plant.
He said Mr.. Vogel suggested
that the city formally assume
responsibility for providing it's
own power; buy a plant site
within 80 days; and let contracts
as quickly as possible for critical
materials. The city already has
formally notified IVA that it
will not renew its power con-
tract with that agency.
Senator Kefauver's subcom-
mittee planned to continue it's
questioning of Adolphe H. Wen
zell. a former Budget Bureau
consultant on power matters
while he still was a vice presi-
dent of the First Boston Corp.
That New York financial firm
later became financial agent for
the Dixon-Yates contract, serv-
ing without fee. Mr.. Wenzell is
now a world bank official.
Undecided on Dodge
The Senator said the subcom-
mittee has not decided finally
whether it will call Mr.. Dodge,
who was budget director while
Wenzell was a consultant and
who now is a special assistant
to the President on foreign eco
nomic policy.
Senator Kefauver said the
subcommittee's hearings prob
ably would continue for two
weeks or more
He said during an NBC radio
TV interview yesterday the
Dixon-Yates matter would have
an influence on the 1856 elec-
ton campaign and described the
Eisenhower administrations ne
gotiation of the Dixon-Yates
power contract as worse" in
many respects than the Teapot
Dome oil scandal Of the 1920s.
When he made the latter
statement, he was asked if he
was blaming Mr.. Eisenhower for
what the Senator described as
a strong indication that the
criminal code was violated.
If the power contract was ar