The coastland times. [volume] (Mnateo [i.e. Manteo], N.C.) 1947-1959, 1957-05-03
SEVERE JOLT GIVEN
HATTERAS ISLAND
ELECTRIC SYSTEM
Some $1,000 Lost in Government
Funds Given Plumber Before
Work Performed

An example of what happens
to the peoples business, and par
ticularly a public power business
when the people themselves allow
things to ride, has turned up on
Hatteras Island, where there is a
shortage of some $4,000 reported.
The funds, representing govern
ment loans made to customers to
install equipment, and obligingly
and trustingly turned over to FL
mer Midget, who was in the
plumbing business in Manteo.
Midget, it is said, assured the
managers of the Cape Hatteras
Electric Membership Cooperative
that it would be all right to give
him the money, that they could
depend on him doing the work and
furnishing the materials. Contrary
to usual custom, which requires
contracts to be comepleted before
public funds are paid out, they
turned this money over to Midget,
who said he needed it to buy ma
terials.
Now just who will lose this
money? 1t was loaned through the
REA to some of the individual
customers on Hatteras Island, I'M
der the Governments liberal loan
policy. The money was to be used
for household improvements which
are Incidental to the increased use
and enjoyment of electric current
manufactured by the electric
plant at Buxton. The items in
clude water pumps and heaters,
washing machines, bathrooms, etc.
The customer is to repay the
money by a small monthly charge
added to his light bill. Supposed
ly, the loan is made in the Gus
toner's name, and the question is,
shall the individual customer lose
all his money for which the labor
and goods have not been delivered.
Or shall the Government lose it,
or is the whole system at Cape
Hatteras to lose it?
Here enters a question of the
equity of the matter. Are all the
customers, who shared in none of
the benefits from these loans, now
to be expected to help bear the
cost of the money gone astray?
| To A. one,,,o, IL o&;,.,,, N five
then it becomes a business loss
on the whole system, tending to
keep rates high, and make all Gus
toners pay unduly high costs for
their electric service.
This situation might not have
arisen, but the people themselves,
by their Indifference to the affairs
of the coop may have contributed
to it. The coop has not had
stockholders meeting in about
three years. Several notices of
annual meetings have been mailed
to all customers, but never do
enough show up for a quorum.
Consequently there has been no
change of officers, no considera-
ton to details and policies.
On the other hand it seems that
the army of inspectors, auditors
and supervisors out of Washing
ton, who enjoy fine Government
jobs looking after the co-ops
would have been paying a little
more attention to the Cape Hat
teras coop.
Here is case where the tax
payers furnished all the money.
The several hundred thousand dol
lars sent down from Washington
to benefit the people of isolated
Hatteras Island, didn't cost the
local people anything. By payment
of small initial fee, any custo-
mer gets electric service, and be-
comes stakeholder and voter in
the affairs of the coop. Once get
ting his electric service installed,
and finding things rolling along,
he loses interest in further effort
in behalf of the whole. Usually
the entire affairs of the business
are left completely in the hands
of a few people. No one knows
what is going on until it is too
late.
In this particular case, it is said
there is no way to get the money
back. Civil action can recover
nothing frorn one who has moth
ing. The idea of criminal action
is dismissed by a sympathetic,
forebearing people who say it is
no good to persecute the offender,
since Imprisonment would not re-
cover the money.
Net result to the people is there
is no likelihood of a reduction in
the high electric rates about which
they have complained bitterly,
while doing nothing about it