Litigation Over Light
and Power. . . Town of Graham and Mutual Light and Power Co.
Temporarily
Restrained. . . Hearing Oct. 4th
Litigation affecting thousands of people in Graham,
Burlington and other sections of Alamance County found its way into the United
States district court of western North Carolina yesterday when J.B. Pascal and
Warner Moore of Richmond, Va., instituted legal action against the mayor and
commissioners of the town of Graham and the Mutual Light and Power Company of
Graham.
The complainants appeared before Judge James E. Boyd and
filed a bill in equity, asking for an injunction against the town of Graham and
the Mutual Light and Power Company on the ground that the town of Graham was
taking action to abrogate contracts made by the municipality with the Piedmont
Light and Power Company.
Electric power for the mills in and around Graham, as well
as mills in and around Burlington, and for the operation of street cars between
Burlington and Haw River is furnished by the Piedmont Light and Power Company.
By making contracts with the Mutual Light and Power Company, the officials of
the town of Graham are taking action which would supplant the Piemont Light and
Power Company, the complainants contend.
It is contended by the complainants that the franchise granted
to the Mutual Light and Power Company for the operation of business in Graham
was issued irregularly, only two of the five town commissioners having voted
affirmatively on the proposition and only three votes having been cast.
The
franchise of the Mutual Company is for a period of 50 years, and the
complainants argue that it would greatly diminish the business of the Piedmont
organization. In fact, it is contended that the new franchise would serve to
render the business of the Piedmont of very little value.
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