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
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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
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t 3iiu.ieu iur vcuis ui tcrvive, jut
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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. Dinettes fr. 29" to 99"
ii
for longer wear, all scams are sewn with
8-
s4;f.u,waaliJ
soout cvsnrw tTjii i-ewaioiiimi-
t m r
ir $nu I furrtna mci rmt
rm si tiarv tun', dfi- Fitt SI km tr rtn
kit km M-m iM ktn turtoi
In. 1
i m t 1 i i i 1 1 irl '
you've seen tham elsewhere at 2.91
NOW ONLY AT SIARS
for
just in time far Christmas
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You don't have to pay a fancy price for
pillows when you Shop at Sears. These
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eny cheir
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17951
Occasional
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88 100
Dowa
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29.88
Platform
Rocker
tin 0X88 400
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Solid comfort. Blond or
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EE 48.88
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Metallic tweed cover.
Harmony House Christmas Magic for
mm B fl . f
year around bedroom beauty:
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Reg. 9
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1
ir
Clllb Swivel Full width background cloth.
D D I ? Scroll design in heavy high pile
DOSS ROCKer tr tufting closely spaced baby chen-
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74'
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Heavy frieze upholstered
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With Foam Cushions $15 More
Modified Lawson styled divan bed, f
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29.00
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Indentea front panel for plus styl
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97c
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BEVELED EQGE
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ll to i A .
"li$ VEGAS" PATTERN wilh
background colors of green or grey
Doveno, Reg. 1 4.98 . .' Now 1 1 .88
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J
iSsKT ijip ft
ft r-r u
onetone cordowale
98
Modern style, full ronge ei col
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multicolored floral
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11
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II
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White cordowale bockground
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is
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Decorate Now! - for the
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Printed Barhclolh
i.
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It mi
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Pair
50"I9"
textured cotton, in modern neat design, two
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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