Henderson daily dispatch., 1939-01-24
RandolphREA
Project Gets
Full Approval
Daily Dispatch Bureau,
In the Sir Walter Hotel.

Raleigh, Jan. &.-North Carolina
Rural ElectrificatiOn Authority, often
the target of verbal sings and ar
rows from the Federal REA and self
styled opponents of the power trust,
today gave its full approval to- the
Randolph County Electric Member
ship Corpora ton and thereby kept
clean it's record of never having dis
approved an electrical cooperative
upon which it has taken final action.
The Randolph project is one of four
which were presented to the State
REA some twelve days ago by coop
members and representatives of the
Federal REA. 1t has been allotted
100000 by the Federal administra-
ton.
The State REA board met today in
accordance with the promise given
at the former meeting by it's Direc-
tor Dudley Bagley.
Approval of the project means that
any further delay in beginning of
construction cannot be charged to
the State body, as it has now COM
piled with the provisions of the law
which require it to make a survey of
is feasible"
When the federal folks presented
the four projects, they insisted that
the State REA give it's immediate
and unqualified approval without the
survey North Carolina requires.
When Director Bag.ey and his asso-
ciates declined to do so, three of the
applic ations were Withdrawn. These
projects, for which Federal funds had
been allocated, are Arson ($3OO,OOO),
Davidson $276,OOO) and Davie $780,
OOO).
Reason assigned for withdrawal OF
the applications for these three pro
jects were that quick action is ne
cessary. Incorporation of the three
under the States mutual rural cleo
trification act is in process of accom-
plishment for them. Todays actor
by the State REA, however, puts il
much nearer it's goal than are any
of the three withdrawn.
In view of this fact that there was
concededly more controversy over the
Randolph project than any other, il
is apparent that ali four would have
been approved, and would have been
approved today, if they had been left
before the State unit.
Rather ironically, therefore the pre-
jects which were withdrawn in ord
CT to 'tget quick action" are probably
behind the one left before the State
REA- certainly they are no further
advanced.
Action in the Randolph case
brought to 10 the total number Of
cooperatives for which approval has
been sought from the State REA
In 13 cases the applications were APP
proved, while in the remaining five
cases, the applications were volun
tart Y withdrawn.
Co-ops which have been approved
are Roanoke, Wilson, EdgecomIbe
Pitt, Four-County, Piedmont, Martin
Johnston, Franklin, Glenview, Stanly
CArteret and Randolph.
The five applications withdrawn
were Caldwell, Rutherford, Arson
Davidson and Davie.
These five have either been com
pleted, or are being carried on, I'M
der the so-called mutual act-a mea
sure on North Cardinals statute
books before passage of the 1899
REA act which set up the State
Rural liberalization Authority.
Chief difference between the mem
bership and mutual acts, is THAT the
former provides immunity from al
taxes, including ad valorem levles
on the PHYSICAL property of co-ops
while the mutual exenpts from al
taxes except ad valorem on the ply
steal properties. The membership al
so gives the right of eminent domain
20 the State REA, but this feature is
regarded as re atively unimportant
Under the mutual, co-ops may be
set up without the State REA hav-
ing anything to say about the mat
ter. Under the membership plan
the law requires that a certificate of
feasibility be secured from the
State Authority.