6-(St?e. Ill) Statesman, Salem, Ore., Wed., Dec: 1455 US. Sued for DixonrYates Repudiation ' By KARL R. BAUMAN t WASHINGTON (sV-The govern ment vii sued Tuesday for 13,534, T7I.4J damages (or repudiating the controversial Dixon-Yates power contract. Mississippi Valley Generating Co brought the suit in the U. S. Court ffi Claims. , This is the firm with which" the Eisenhower administration, at the behest of the Presideritt signed a contract to supply private power to the Tennessee Valley Authority Area. The administration defended Hie contract for months, in the (see af Democratic charges that ques tionable or illegal maneuvers were .. being "covered up." ' Finally the administration repudi ated the contract, agreeing in ef fect with the Democratic charges " that New York financier Adolph Wenxell had sat on both sides of (he table in talks leading up to the : contract; He was a budget I bureau adviser and also vice presi dent of the Boston Corp., which became financial agent for the Dixon-Yates interests. Cite Eipenses But Dixon-Yates interests took Issue with the government con -tention that Wenzett's role repre sented a "conflict of interests." Acting through their Mississippi Valley Generating Co,, they asked I3.S34.77I for expenses incurred in getting ready to build the 107 million dollar private power plant Ct West Memphis, Ark. "We commence this litigation with every confidence in its re sult." said E. H. Dixon, president of Mississippi Vallev. i Ike's Order I Tht Dixon-Yates contract has .been a raging controversy since President Eisenhower, in the spring ef 154, personally, ordered . the Atomic Energy Commission to enter into it. Middle Southern Utilities. Inc. tf which Dixon is president, and tna boutnern to., of which E. A. Yates is chairman, "set up Missis sippi Valley to build the big power plant on the edge of the Tennessee Valley Authority's territory. It was to feed energy into the TV A sys tern to replace power diverted to the Atomic Energy Commission. Tht contract was signed Nov. 11, 1954. Eisenhower ordered it can4 celled July 11. 195S. This was' after Memphis said it . would build its ewa power plant rather then take Dixon-Yates energy. The Atomic C a r g y Commission announced Nov. 2S ita refusal ta pay cancel lation damages. The commission attorney' said Veniell, "while having a conflict- big private interest, acted as one af the principal . advisors to the ' government in the negotiation of the contract. Eisenhower has been criticized for jiaving defend ed Wenzell's role in the negoti ations. The President told his news Conference last Ju!y f that he con sidered wenzeu s roie a proper one. .. tz'rtMj jt " m urn a rrN er l&ReallY Jl ml A the ronur?. a t sco H Til' w . at home a. HC . (aW TrU'" i 9,Tl aj to come " erful assor s iA at ings yu if t .... frnrfl i veats w a,nT ot 1 , ifts the C TO ww- . . tor .". ... ss0rtmen - . t00 wonder"" 6r r ki.lA . 11 III! is. . inauiv v 1 1 li rn to Save "-Jii- SST a i&rSJT z& J&i'!!LWf?i "-' Statesman, Salem, Ore., Wed., Dec. 14, '55 (Sec. IH7: s,fc fe&s feu lisd iuiiiflriiQius Kiev; hM veclay lsWisil a i , a tiak is IH "L- - Gift- Priced Sofa Bed jf and Rocker y 5 13.00 Down niropiiiii, Smortly Style d-Budget priced grouping sturdy construction for years of satisfactory service. Metal lic tweed covers. Fricxe -Covered , . . 139.88 Modern Sectional Gift Priced r.oo Down Offers versatility for many room arrangements, modern free form design. Buttoned apron front for odded styling. Metallic boucle 'cover. - - Sectional Group eB5J555sBSetJsPBB"''ssjjj''" . JT ; i LaVr M Lmid afi il-Htlf af , w i X ' L Jhirt And Every Night 'Til Christmas (Except Sat.) si; ".w .4 3Ioscow Radio Reports Soviet forces Reduced t LONDON Moscow radio re ported Monday that the reduction of Soviet armed forces by 640.000 men promised in August has ow been completed. The broadcast confirmed West ern speculation that a chief pur pose of the troop cut was to aid Vie Kremlin a big drive to increase Soviet agricultural output. The ex soldiers have been "transferred to agriculture," the radio reported The original announcement said those being demobilised would re turn to their home communities tpt Jobs "at Industrial establish ments and on state and collective farms." . XlliJUJf , r If I- II ITU - Ti 11' . I .4 . A -1 m. fir v ,rrA n YfW JF jjU r Down $ l?;Vy'-.Hl? lU-tVf. -"vir t2 Sears exclusive detan with reversi- W baraii&iSJMss3v bit spring-filled cushions con ....... -J ...... X I t 3iiu.ieu iur vcuis ui tcrvive, jut 1 J C-: "Vrf-Ss'J Curved Center Section. tf illustrated i aDie with nandieback Chairs, WYEK ?I3 JJ r" aj 30x40 inch plastic' topped table opens to I II 30x48 in. Double V legs for added strength. W U sf Complete with 4 wrap-around frame plastic covered choirs, i m I 4.00 Limited Quantities and Colors I L J Down Charged with danger I)NDOM im Prim MinUtrr Edea said Monday night the Arab Israeli dispute is charged with "the utmost danger." He aaid the United States and Britain are greed on the urgency of working (or a settlement. Helps Set World Record trnXJ 'Sam Samuel' local agent for State Farm Mutual, helped hit company hold world leadership in the auto insurance field for tha 13th straight year. In 1954, State Farm insur ed a recrod total of 3,. 310,000 a u tomobilea, more by far than any company has ever in. sured. 'iSara' Samuel Invites all cartful drlv , ri who want topnotch protection at , rock-bottom rates to contact him now. No cost or obliga tion, of course. ' ' ' ' 7 , Davenport and Chair 84.88 y Savings to $40-3 pc, 5 pc, 7 pc. 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JoicjjofjJjityles: Free form, square, round box, square box Kusnim l-tmi Kusmea souik tmi I to tl utM S rtt Ml tn 3 torn eiei v'i iT 1 Imh iirt cuihwi Floral Pattern Gold overloyed blossom sprays, in sage green, dawn gray, spict brown, or frosty pink. - - ) cushion stusit smt f.tl H HtM I KM Mr HAn (iM tin W Wm wo li 4 KW Mel kusnwr t smi t m mi I IMS For Most Every Furniture Style ond of amazingly tow prices . . eny cheir cover Any Sofa or Hide-a-Bed Cover 26.98 RE-COVER NOW FOR THE HOLI PAYS AHEAD! From It's Sears ! for the largest selection of pillows in town 100 0 98 PB MT Gift Priced ATi 'T r fi ji . - - , D9wn n a 'tki I ' : I I II, i-- D - - j I I ! I : I . wuy, nanuiiea con spring uuit -Jreversible spring filled cushions. sturdy construction, acqudrd frieze ycovtr. Divan Bed Ifessg 0 7 r Gift Priced 17951 Occasional Chair 88 100 Dowa 25" GJff-hkti Blond wood . trim. Se lected fabrics, assorted colors. 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Full or I Twin size. . sik' ''Vis 'Vil'ii li i ill s m 91 f :tr is it Decorate Now! - for the HOLIDAYS AHEAD Printed Barhclolh i. 1 jii It mi Reg. 7.98 Pair 50"I9" textured cotton, in modern neat design, two !Ch;'3 colon in each pattern, Greens, Browns ) ond Groys. Add-a-width for special sizes. Phone 3-9191 For Free Home Decorotion Service lA ok for Miss Wilma tostham our oegoraung tonjutioni. io pyngu- tion. Turncoat BEBLIN Otts Jeha kas re. toraed fresa Caanaaalst Casf Cerasaay, Um laveraascat aa Buace4 ta Baaa Taeaday. John, ha fW ta East Gr saaav H aiaath si, aas fjvea kiaiself bb ta West Gertaaay'f seearity aaliee, the aaaaaaea teat aaid, addlaf that at If aaw aeiaf iaterrafsted ky the preeecater af the Geraaaa preme eaort. (AF WlreakaiaJ Dr. Otto John am- . a n I ' oacK on diae Of West Again By GEORGE BOl'LTWOOO BONN, Germany I - Dr. Otta John, a triple turncoat, has eomt back from II months is the Com munist camp to this West Germaa capital where he formerly was chief of counterintelligence. The former chief spy catcher af West Germany was broufht, to house en a quiet side street ia Bonn which is headousrtera el tht Special Security section at the fMral Criminal Pnlirs aftM slipping into West Berlin Monday, There he was grilled by federal attorneys who have been investh gating his desertion svar since he furtively drove into Communist East Berlin on July . ISM, and announced he was (here ta atsy ' Officially branded a tratitor by the Western German government. the tall blonde, aC-year-old former security chief apparently made a carefully organised escape from his Communists hosts in Berlin. Sources 'there said he had beta planning his flight for tome time. He made contact with friends ia the westers part of tht city, left his home In Potedam and slipped into West Berlin. There tht friends rushed him aboard aa America! plane to Frankfurt.- . Kepi 1 Rendesva . It was revealed ia London that his wife left her horns there twe or three days ago, presumably It keep a rendezvous with John If) West Germsny. This made John a turncoat three times. After the attempts to kit Hitler failed, he deserted the Naiis and escaped to Spain. He mad his way to Britain whert he work, ed for British Intelligence. ( After the war, ha returned- M West Germany and was appointed chief of tht federal count eras pionagt organization early in 134. Fnur v.ari ltr h want ftvmr la the Communists and now ha hat deserted them. Reaart Delayed , Not until he waa In iht handt of the Security Polirt in Wast Germany did Chancellor Koarad Adenauer'a government today rs port John's return. Adenauer's own smiling an nouncement to a meeting of parli mentary leaders of his eoaiitioa government waa greeted with a - rvmf m laugmrr. But John s return Is likely ta revive the scandal caused by hit defection to the east whea the Adenauer government was attack ed tor having named a man tf such apparently unstable character and uncertain loyalty ta a top security post, Seed Growers Protection Said Needed CORVALl.IS ( Seed growers will need protective measures ia the proposed soli bsnk program, Ray H. Teal, seed and grata marketing specialist a t Oregon State College, aaid Tuesday. The proposal is to retire mar ginal land from cultivation and put it into grass or other soil-building plants. Teal said that If seed wert harvested from those lands, aeed growers would be affected seri ously. He urged a prohibition against harvesting of such aeed. He also urged that no payments be made on se(-asfde land until ft has been seeded to legumes ar grass. This, he said, would a smart a good market for seed. The belief that a mentally de ficient girl can be cured by marriage is tragically falae, ai." perts say, i New 19M Fully Automatic As Low Aa N0RGE DRYERS $1.25 Par Week riione 28106 till Crestview f Drive . . After Small Dawa Payment Full Pric. $129.95 ai lout ssssrt Phana 2-4191 11 TS plenty of 'FmParfdrig CapWtae 3919' Of i, .1 md