A Round for Dixon-Yates

The battered Dixon-Yates contract last week won an important round. From two Securities and Exchange Commission lawyers came the recommendation that the commission approve initial financing of the Dixon-Yates plan to supply power to TVA at West Memphis, Ark. in exchange for a similar amount of power from TVA to the Atomic Energy Commission at Paducah, Ky. and Oak Ridge, Tenn. The contract is legal, said the lawyers, and the proposed profit to Dixon-Yates is "not significantly out of line."

While the lawyers' recommendation will probably be accepted by SEC, it will not necessarily be the end of the Dixon-Yates row. Democrats in Congress are already planning to issue a report blasting the contract as a bad one and urging AEC to back out. What is more, they think that AEC will welcome the chance. TVA could then overcome most Democrats' objections to the present contract by signing a contract directly with Dixon-Yates, thus eliminating AEC as the broker.

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