' Local Growers Apply For Charter
Cotton Cooperative Is Sought
Chowan County cotton farmers
have applied for a charter for a
cooperative to be established in
the county. The purpose of the
cooperative is to gin cotton, The
reason that these farmers feel the
need for the cotton gin is because
the nearest gin is about 40 miles
away. Cotton or corn is needed in a
peanut rotation and on some of the
sandier soils here -in Chowan
County corn yields have been so
low and the cost of production has
been so high that cotton is a
natural substitute on this type of
soil, according to Pete Thompson,
county extension chairman.
The group of farmers met on
Friday morning and had a report
of the feasibility study. The study
showed that a gin was feasible if
those that had signed up for cotton
would produce for this gin.
THE CHOWAN HERALD
Vol. XLVI-No. 12
School Board Faces
Shortage Os Funds
A shortage of current expense
funds could result in a cash flow
problem in the Edenton-Chowan
Schools unless the Board of
Education revises the budget,
warned J. P. Timberlake, cer
tified public accountant, during an
audit review, Tuesday night. He
said the budget resolution adopted
for 1979-80 included a fund
balance appropriation which was
about $39,600 greater than the fund
balance available on June 30,1979.
Timberlake told the school
board the oversight resulted when
certain receivables were carried
over from the previous year and
placed in current expenses. He
said the budget should be
amended to reflect the difference
in fund balance available.
The auditor recommended
approaching the county com
missioners concerning a trade-out
of funds from the capital outlay
budget which has $25,664 available
and a possible shift of funds from
the food service budget where
there are about $73,000 available.
In responding to question from
'.Farm Alcohol Production Is Discussed
While alcohol production on
farms may cut some diesel and
gasoline fuel expenses, it will not
be as cheap as many farmers have
been led to believe, said Dr.
Everette Nichols, an economist
with the NCSU Agricultural Ex
tension Service.
Speaking to farmers at a meeting
Tuesday afternoon, Dr. Nichols
said there will be no 40 cent per
gallon alcohol as has been ad
vertised by some companies in
cluding Mother Earth News. An
experimental still built at NCSU
will yield alcohol made from corn
at a price of $1.75 per gallon for
the first year of operation.
\ Acording to his figures, the cost
per gallon without computing
fuel, labor, operating or equip
ment costs comes to 86 cents. That
figure includes a com by-product
credit of 33 cents or one-third of
the cost of raw materials.
Figuring com at $2.80 per
■ /////?/A-/, % Ak \
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EXPERIMENTAL STILL Farmers attending seminar on
alcohol production for farm use regarded with interest an ex
perimental still built at NCSU. John Glover, an agricultural
After the feasibility study report
they elected a board of directors
and asked for a firm commitment
from the farmers to grow cotton.
Serving on the board are Carroll
Bass, Fahey Byrum, Thurman
Ashley, Clarence Leary, Jr.,
David Ober, and George Jordan.
Each farmer was also asked to
buy one share of common stock for
SSO so that some money would be
available to pick up incidental
expenses that will be occurring.
Each farmer producing cotton is
asked to buy one SSO stock for each
acre of cotton that they will be
producing in 1980. This money will
be used as equity in the gin so that
the balance of money necessary
can be borrowed for the gin
construction.
It is the feeling that in order to
have the gin in place this fall,
Edenton, North Carolina. Thursday, March 20, 1980
board member Dr. J. H. Horton,
Timberlake commented, “It is a
common misconception, but
receivables are not part of the
statutory fund balance. It is dif
ficult to know at the end of June,
just how much money you really
have.”
Dr. John Dunn, superintendent,
said that in the past, billing for
reimbursibles was done at the first
of June, and that the income was
appropriated in an effort to stretch
the budget to a maximum.
Timberlake suggested not
budgeting those funds in the
future, but using them as a
cushion for unanticipated ex
penses.
The overall increase in spending
from 1978-79 to 1979-86 amounted
to $737,028 or 19 per cent, and the
overall increase in per pupil ex
penditure was up 28 per cent.
Federal grant funds coming into
the schools increased 43 per cent,
Timberlake reported.
It was recommended that ef
forts be continued to compile the
Continued on Page 4
bushel, it would come to $1.04 per
gallon before subtracing the by
product credit. The corn by
product, rich in protein, fat and
fiber, can be fed to cattle and
swine straight from the still
without drying.
Other raw materials such as
wheat, barley, Irish potatoes,
sweet potatoes and sugar beets do
not produce a usable by-producer.
Hs said it would cost about SBOO
to build and put into service a still
capable of producing one gallon per
hour. A 25 gal. per hour device
would cost from $90,000 to $250,000
to build.
Among the factors to be con
sidered in setting up a distillery
are raw materials, ingredient
costs, fuel such as wood, labor,
operating costs, and owners|iip
costs.
On a national basis, diversion of
surpluses from export to alcohol
production, while cutting
there is only a period of two to
three weeks from now to make a
commitment for the cotton
production. Cotton would be
planted on corn land. Corn
planting time is over generally
before cotton is planted and the
decision of whether to plant cotton
or corn has to be made soon. If a
person should choose not to grow
cotton, it will be too late for him to
plant corn.
Those farmers who are un
decided and will not plant cotton
without a gin will have planted
corn and this means that the gin
will miss that many acres of
cotton in 1980.
If you have not been contacted
but are interested in producing
cotton, please check with any of
the cotton cooperative board of
Continued On Page 4
Single Copies 20 Cents
■ farad*
Horrendous' Charge
The following appeared in the
Electricities’ report to members
dated February 29:
“The monthly wholesale fuel
charge that Virginia Electric and
Power Company levies on its
municipal customers zoomed
from $13.12 per 1,000 kilowatt
hours in December to sl7 per 1,000
kwh in January, a level that
strains belief.
“At Electricities’ request, our
consulting engineers sent an
accountant to Richmond for two
days to run an audit on the charge.
The period checked was April,
1979, through January, 1980. The
findings are that, the fuel charge
seemed to.be in compliance .with
FERC regulations. Which is not to
say that better company
management could not have
prevented it from reaching its
present levels.
“Vepco says it will have its
nuclear plants running and some
oil-fired units converted to coal in
the near future. If so, the fuel
Continued on Page 4
petroleum fuel costs, could ad
versely effect the balance of
payments and weaken the
American dollar, Dr. Nichols said.
Price increases of up to $2.00 per
Continued On Page 4
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engineer, explained its operation and discussed its application
on small farms for cutting petroleum fuel consumption.
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FARMERS FORM COOPERATIVE The board of directors of Albemarle Cotton Cooperative
are pictured here during a meeting Friday at Edenton Municipal Building. Left to right are: Fahey
Byrum,Thurman Ashley, J. Clarence Leary, Jr., David Ober, and George Jordan. Not pictured is
Carroll Bass. The cooperative plans to purchase a cotton gin for operation in Chowan County. (Staff
Photo by Luke Amburn.)
James E. Taylor
Taylor Candidate
For School Board
James E. Taylor, an Edenton
resident and financial aid officer
at ECSU, has announced he will
seek election to the first township
seat on the Edenton-Chowan
Board of Education. That seat is
currently*Held by Mrs. Emily G.
Amburn who will not seek re
election.
The announcement of his can
didacy will result in a three-way
race in the non-partisan contest.
Also seeking the post is John A.
Mitchener, 111 and Mrs. Patricia
Downum.
In a statement, Taylor said
excellence in education must be
the primary academic goal and
that consolidation on the junior
and senior high school levels is a
step in the right direction.
He said the attributes of his
candidacy are teamwork, ac
countability, youthfulness,
leadership, optimism and
Continued on Page 4
Vepco Spokesman Addresses
Chamber Os Commerce
A Vepco spokesman said here
Thursday morning that the firm
has “turned the corner” in a fight
to reduce electric rates in North
eastern North Carolina.
Speaking at the 7:30 A.M. meeting
of Edenton-Chowan Chamber of
Commerce, Randy Mclver of
Roanoke Rapids admitted that
this has not been a good year for
the company.
As he was talking, the word was
coming from Vepco corporate
office in Richmond, Va., that
downed nuclear plants would not
be returned to operation for
another month or more. Mclver
explained to the Edenton group
that when nuclear units are down
the supply has to come from
higher priced oil-fired generators.
Vepco was hit with yet another
blow Friday when the Federal
Energy Regulatory Commission
ordered a “private” investigation
of the utility company.
The study of Vepco’s
management could take as much
as eight months and the findings
will not be made public. North
Carolina officials are critical of
the federal commission’s decision.
The commission ordered the
study following a petition last
December from Operation
Overcharge, a citizen organization
in 22 counties of Eastern North
Carolina. The group was suc
cessful earlier in the year to get
the N. C. Utilities Commission to
conduct a study. The state’s fin
dings are on appeal.
Mclver told his Edenton
audience that while Vepco is not
the most popular firm in the state
right now, efforts are being taken
Electric Bills
Budget Problem
Chowan County and Edenton-
Chowan Schools face a budget
problem with the line item for
electricity. The question now
before administrators is where
money will be found for budget
overruns.
Cliff Copeland, county manager,
said Monday that the county has
already exceeded the budget for
1979-80 by some $6,000. There are
still three months remaining in
the fiscal year.
The manager said it is becoming
increasingly difficult to find funds
in an already slim budget. “We
have a problem,” he said.
There is also a major problem
with Edenton-Chowan Schools.
Mrs. Pauline Travis said there is a
total of $11,771 left in the elec
tricity account with four payments
due through June 30.
The charges have averaged
$4,983 per month during the period
from July 1, 1979 to February 20,
1980. If the charges remain near
this figure the schools could be
nearly SB,OOO over the budget for
electricity.
W. B. Gardner, Edenton town
administrator, said the fuel
charge from Vepco which is
passed on to the consumer has
played havoc with all budgets.
He said there is no indication of
much reduction at this time.
to correct past mistakes and
predicted that by 1985 Vepco will
be competitive with other utilities
operating in the state.
The company has 70,000 retail
customers while another 94,000
are served by various groups who
purchase power wholesale. He put
the blame for the conversion from
coal to oil on federal regulatory
agencies. Since 1974 the company
has been getting off oil and back to
coal although federal regulations
are tough.
Mclver said it would take from
three to five years for Vepco to
accomplish what is necessary to
perfect conversions and get
nuclear plants back on line. He
said any move must be proven to
be cost effective.
The Southern Regional vice
president said nuclear units were
doing well before being crippled
by federal agencies following the
Three Mile Island incident. An
example is a sl-billion unit that is
ready to be put on line but is being
held up because the permit has
been witheld. While units are down
it costs Vepco some $lO to sl2-
million per month.
While Gov. James B. Hunt has
stated that Vepco’s rates have
hurt industrial prospects from
coming into the service area,
Mclver said: “We have not seen
the first customer move out
because of our rates.”
Hearing Location
Protest Slated
Issuance of a discharge permit
to CF Industries in Tunis will be
discussed at a public hearing in
Raleigh, April 3. According to
reports, a tentative agreement
between the state and the industry
has already been reached.
The meeting is scheduled to
begin at 10 A.M. in hearing room
6X of the Archdale Building on
Salisbury St.
The tentative agreement calls
for a three year permit, to end
January 31, 1982. The Tunis plant
is currently operating on an 18-
month permit that would have
expired in November, 1979, but
because of the industry contesting
it, it remains in effect.
Also to be discussed will be the
limitation on discharge of
suspended solids. Asst. Atty. Gen.
Van Oakley said the state has no
statutory or regulatory authority
to include such a limitation.
CF Industries originally was
seeking a five year permit, while
the state was asking for issuance
of an 18-month permit because of
the nutrient sensitivity of the
Chowan River. CF Industries has
taken the position they are entitled
to the same length of permit as
other industries.
Capt. A. M. Howard, chairman
of the Water Resources Board of
the Edenton-Chowan Chamber of
Commerce and a member of the
Arrowhead Beach Property
Owners Association, said both
groups are sending letters
protesting the hearing site and
time, charging it pa-events in-
Continued On Page I