Borisontal CHART 3 Vertical Conglomerate Source: Based oι αστίοης reported by Moody's Investors Service, Standard & Poor's Corp. and Newspaper and Trade Journal iteща The following communications were received after the hearings were closed: (See pp. 657 and 1171.) Mr. GORDON DEAN, WASHINGTON, D. C., May 10, 1952. Washington, D. C.: I have before me copy of letter dated May 8 written you by E. H. Dixon, president, Middle South Utilities, regarding power proposal. I sincerely hope that ample opportunity will be given to these people to present their proposal and that all effort will be made to utilize private capital on this project rather than expending Government money through TVA. As you know, we on the Appropriations Committee are being called upon by the public to reduce governmental expenditures in every way possible, and if it can be shown that private capital will furnish this power at reasonable rates, I believe it would be most unwise to use Government money for that purpose. ALLEN J. ELLENDER, United States Senator. The following was sent in by teletype today: MR. GORDON DEAN, Chairman, Atomic Energy Commission, Washington, D. C. MAY 8, 1952. Am deeply concerned because of indications that our proposal may be placed before Commissioners for consideration without affording us an opportunity for review of basis of comparison. It is hard for me to believe this can be so in view of former procedure. You may recall in December 1950, we were afforded opportunity to review staff presentation of our proposal versus that of TVA and that we disagreed so sharply with it we felt obliged to send teletype message of clarification to the Commission. It would seem that our subsequent record of complete cooperation with you on that project plus very substantial expenditures of money and time by the various sponsor companies in connection with your current requests.clearly justifies a similar opportunity for review and comparison of current proposals. We would naturally expect TVA would be accorded similar opportunity and we would be agreeable to meeting with you and TVA. This is important, further, in fairness to the insurance companies from which we have commitments for necessary funds to build this added power facility. These insurance companies made their commitments early this year in response to your urging that speed was essential and because of their feeling that this power job could be done without burdening the Public Treasury for sums over and above those required directly by your AEC building program. They have been most patient, as have the manufacturers of major items of equipment who likewise have been standing by at our request. We respectfully remind you that as of today insurance companies must pay Federal income taxes at 61⁄2 percent rate on interest received. This, coupled with Federal and State taxes included in our proposal, would result in decrease of nearly four-tenths of a mill in our base rate per kilowat-hour as compared to TVA tax-free position. This is typical of evaluations we think necessary for fair appraisal and comparison. Since we were required to submit detailed support of basis of our proposal we presume you have required TVA to submit comparable details. Accordingly, the comparisons we seek need not be time consuming. I hope you will be able to advise me that there is no basis for my concern so that I can so advise my partners. E. H. DIXON, President, Middle South Utilities, Inc., New York, N. Y. Additional communications received follow: MARITIME TRAINING Hon. BURNET MAYBANK, UNITED STATES SENATE, COMMITTEE ON FINANCE, United States Senate, Washington, D.C. DEAR BURNET: I had hoped to be able to appear before your subcommittee to testify in support of appropriations for the merchant marine training program. |