Henderson daily dispatch., 1937-08-23
JOHNSTON COUNTY
REA ROW IS ENDED
Judge Grady Rules Against
Coop, But Bitterness
Continues
Daily Dispatch Burenu,
In the Sir Walter Hotel.

Raleigh, Aug 23.-Action of Judge
Henry A Grady in dismissing both
the plea for an injunction and the
action of three Johnston county far
mers backed by Federal Rural Elec-
trification officials against the Caro-
lima Power and Light Company and
directors of the Johnston County
Electrical Cooperative probably bring
this interesting litigation to a final
stop.
The defeated plaintiffs can, of
course, appeal the decision to the
North Carolina Supreme Court, but
without an Injunction restraining the
power company from proceeding with
its construction of electric lines a
victory in the higher tribunal would
be meaningless.
Bitterness Lingers.
But though the action may nave
ended, the bitterness of the struggle
will linger on for a long time, with
opponents of the So-called power
trust" still of the opinion that the
farmers of Johnston were giving a
raw deal, and with friends of the pow
er companies still maintaining that
Johnston county will get better cleo
trio service at less cost than if the
lines were to be built by the coop.
Briefs of the contending parties
showede the wide divergence in views
Plaintiffs contended that the direc-
tors who effected the so-called "com-
promise" where the coop agreed
never to build any lines competing
with the company exceeded their pow
ers and that they entered into an
agreement in unlawful restraint OF
competition. They declared that the
power company had many years in
which to electrify Johnston county
but made no move to do so until the
COOP was in position to go forward
with the work and until the power
company had lost its fight to restrain
the CO op by resort to the courts. The
plaintiffs brief said in one place:
Even if the defendant power COM
pany did not need a certificate OF
convenience and necessity the ques-
ton would remain whether it could
stay out of the community for long
time and then, when authority is
granted to a public agency, proceed
to flaunt its authority.
Claim Bargain Good One.
On the other hand, the defendant
directors and the power company con-
tended that the bargain was a good
one for Johnston county and that the
1885 persons who signed up with the
coop as electricity subscribers will
get better and cheaper service as
result of the deal.
They contended, too, that interven-
ton of Federal authorities in the case
was unwarranted and caused solely
by jealousy of the success of the peo-
pie of Johnston county in getting ser
vice without assistance of. the govern
mental agency.
A preliminary statement in the de-
PENDANTS brief we'll explains their
contentious. 1t said:
"This case is notable in several
aspects. 1t is probably the first time
on record in which it affirmatively
appears that a Federal official, the
Rural Electrification Administrator,
has used his position and influence,
as well as the taxpayers money, to
promote and finance litigation by
private parties.
Jealousy Is Alleged.
I'm the second place, it clearly ap-
pears from the affidavit of Mr.. Horne
and other evidence that jealousy on
the part of this official at the success
of a State agency, charged by the
Act of 1885, Chapter 288, with the
duty of advancing rural identification
is the prime cause of this interference
"In the third place, your honor,
sitting as a chancellor in equity, is
asked to enjoin rural Identification
in Johnston county because it is be-
ing performed by a public utility, sub
ject to the States powers of regula-
ton and taxation and in harmony
with the States policy and program
as outlined in our answer and sup
porting affidavits, which are not de-
MED, and, lastly, to grant this injunc-
ton in the name of nominal parties
who will receive no benefit if it is
granted and sustain no damage If it
is refused"