Government: End of Dixon-Yates

The U.S. Supreme Court last week pulled the plug on the highest-voltage power controversy of the Eisenhower era—the Dixon-Yates project. The court ruled that the U.S. need not pay damages to Dixon-Yates for cancellation in 1955 of the utility combine's contract to build a $107 million electric-generating plant to supply power for AEC's atomic project. Reason: the contract was "infected by an illegal conflict of interest." The decision threw out a U.S. Court of Claims award to Dixon-Yates of $1,867,546 for out-of-pocket costs.

The conflict of interest focused on the dual role played by Investment Banker Adolphe Wrenzell, a vice president...

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