Carolina Power & Light Company, Yadkin River Power Company, Carolina Gas & Electric Company and Palmetto Power & Light Company, are jointly interested in the construction of an electric transmission system interconnecting their existing transmission systems with the new hydro-electric plant of the Wateree Power Company on the Wateree River, now nearing completion. The object of this proposed transmission system is the distribution of approximately 20,000 horse power in the combined territories of the companies referred to, this power having been purchased for this purpose from the Wateree Power Company.

On account of existing financial conditions the, lack of market for securities of any kind, and the impossibility of raising funds for construction purposes through channels heretofore available, it has become necessary for Carolina Power & Light Company, the parent corporation of above mentioned companies, to apply to the War Finance Corporation for financial assistance necessary to the completion of the extension referred to.

Preparatory to making application to the War Finance Corporation for the desired loan, it will first be necessary to secure approval and endorsement of these extensions by the War Industries Board, as being essential or of benefit to the Government in its prosecution of the War, or contributory to public welfare. The object of this letter is to ask your cooperation and assistance in obtaining this approval and endorsement from the War Industries Board.

You are perhaps already familiar with our plans in a general way, these having received some publicity, but we desire to lay them before you for your consideration; and to ask you, if you find same justified, that you direct a letter of endorsement to the War Industries Board, Washington, D.C. giving your views as to the necessity of these extensions both for war and public welfare purposes. We give below a brief history and outline of the proposed extensions and their purposes. This information may be used by you if desired in your communication to the War Industries Board.

During the latter part of the year 1916, on account of growing demands for electric power, Carolina Power & Light Company and Yadkin River Power Company, found it necessary to arrange for an additional supply for distribution to present and prospective consumers. Early in 1917 a contract was made with the Wateree Power Company for approximately 20,000 horse power to be delivered about January 1, 1919. In order to receive, transmit and distribute this power, the construction of a new transmission system was necessary to interconnect existing transmission systems with the new hydro-electric plant, and it was necessary to construct additional distributing lines and substations incident to the distribution of the additional power. Accordingly, as soon as the contract was negotiated, plans were immediately made for the necessary extensions.

These plans comprised the construction of the following:-

An 82 mile 100,000 volt, double circuit, steel tower transmission line from Laurinburg, N.C., to the Wateree plant near Camden, S.C.

The construction of approximately 75 miles of 22,000 volt, wood pole distributing lines, for the purpose of connecting Hartsville, Darlington, Florence, and Marion, S.C., and for connecting Laurinburg, N.C., with McColl and Bennettsville, S. C., and the Wateree plant with Camden, S.C.

The construction of a number of short distributing lines, aggregating from 10 to 20 miles for the connection of prospective consumers by the companies mentioned.

The construction of transforming, switching and distributing substations at Hartsville, Florence, Marion, Darlington, Timmonsville, Camden, McColl, Bennettsville, S. C., and Laurinburg, N.C.

The object of these combined extensions are four-fold.

First: For the purpose of transmitting power from the Wateree plant to the system of Yadkin River Power Company;

Second: For the purpose of delivering a part of this power to Carolina Power & Light Company over Yadkin Company’s line;

Third: For the transmission of power to the system of Carolina Gas & Electric Company;

Fourth: For the transmission and distributing of power on the system of Palmetto Power & Light Company.

The communities served by Carolina Power & Light Company, include the cities and towns of Raleigh, Henderson, Oxford, Roxboro, Goldsboro, Sanford, Jonesboro, Fayetteville, Selma, Smithfield, Clayton, Wake Forest, Franklinton, Pine Level, Kenly, Princeton, Four Oaks and La Grange. These communities are now interconnected by 216 miles of high voltage transmission line, and served 181 miles of distributing line.

In addition to furnishing the public service in these communities, the company furnishes power for the operation of 26 cotton mills aggregating approximately 14,000 horse power, 11 grist mills, 11 cotton ginneries, 12 water works systems, 3 cotton seed oil mills, 4 railway shops and coaling stations, brick plants, knitting mills, ice plants, tobacco factories, automobile truck factories, shell plants, etc. The connected load of present consumers is approximately 23,000 horse power

The Carolina Power & Light Company owns and operates a 3,300 horse power hydro-electric plant at Buckhorn, on the Cape Fear River; a 5,000 horse power steam plant at Raleigh, and a 1,500 horse power steam plant at Goldsboro. In addition the company purchases for distribution a large amount of power from Yadkin River Power Company.

The communities served by Yadkin River Power Company include Hamlet, Rockingham, Wadesboro, Laurinburg, Maxton, Lumberton and Lilesville, N.C., and Cheraw, S. C. These communities are interconnected by 184 miles of high tension transmission line, and 59 miles of distributing line.

In addition to the lighting and miscellaneous power service in the communities above noted, the company furnishes power for 19 cotton mills aggregating 8,050 horse power, and for cotton seed oil mills, silk mills, cotton ginneries, fertilizer factories, railway shops, ice plants, etc. The total connected load of consumers served is approximately 10,000 horse power. The Yadkin Company also furnishes a large block of power to Carolina Power & Light Company for redistribution on the system of that company.

The Yadkin River Power Company owns and operates a modern hydro-electric plant of 32,000 horse power on the Yadkin River at Blewett Falls, N. C., from which it supplies all of its own requirements and furnishes power to Carolina Power & Light Company for redistribution.

The communities served by Carolina Gas & Electric Company comprise Florence, Darlington, Marion, Mullins, Timmonsville, and Summerville, S. C. All of these towns are supplied with electric light and power; and the towns of Darlington and Marion are supplied with water service; and the town of Summerville with ice by this company. The present industrial load of this company is approximately 700 horse power, exclusive of its public utility load. The industries served include grist and roller mills, pumping works, iron works, cotton ginneries, railway repair shops and yards, etc.

The Carolina Gas & Electric Company owns and operates a 1,500 horse power central steam electric plant in the city of Florence, for supplying the cities and towns above mentioned and the industries therein.

The above references are to present business of the companies mentioned. The territory of the combined companies offers an additional available power market for sale of hydro-elecric power of approximately 26,000 horse power, including 4 electric light and power utilities, 3 water supply utilities, 20 cotton mill, 16 cotton seed oil mills, 2 paper mills, 2 Army cantonments, 2 railway yards and shops, 6 ice plants, 3 machinery manufacturers, and many other miscellaneous industries.

All of these industries are users of coal and the adaptation of hydro-electric power to same will result in great saving of fuel, and undoubtedly in increased production, as the industries are now at times seriously embarrassed by fuel shortage, and there is apparently no promise of relief in this respect.

It is estimated that the sale of 20,000 horse power within the territory defined will result in a annual fuel saving of not less than 150,000 tons of coal, and in the annual release of 3,000 coal cars now used in serving this territory which can be diverted to other purposes.

In anticipation of receiving the additional supply of power herein referred to, all of the companies mentioned have entered into contracts with prospective consumers for supply of power, and these consumers in numbers of cases have made or are engaged in making additions to their plants, and the installation of electrical and other machinery. These plants as well as the power companies, will suffer serious financial loss unless the proposed extensions can be completed.

The power companies have already spent in excess of one-half million dollars in carrying out the above work. All necessary materials for this work have been purchased and must be paid for; hence the power companies will suffer great financial loss unless those extensions can be completed and put into operation. The communities which it is proposed to serve will also suffer loss, as there is now a material shortage of power throughout the southeast. Additional requirements either of present or prospective consumers cannot be met, and the industrial growth of these communities will be materially affected. If the power companies should find themselves unable to carry out their project, it is possible that the power supply for which they have contracted may be diverted elsewhere, and that the communities which it has now proposed to serve may for a long period of time be without this service which is so essential to their development.

It is to be noted that practically all of the industries served by these companies are of an essential nature so classified by the War Industries Board; and that the balance of the power distributed by the companies in their public utility operations to domestic consumers, water works, street railways, etc., is for public welfare purposes.

The public utilities herein referred to are financially strong, going concerns. The parent company, Carolina Power & Light Company was organized in 1908, and since that time has been doing a rapidly growing business in electric light and power, street railway and gas service. The Yadkin River Power Company was organized in 1911, and since that time has done a rapidly expanding electric light and power business. Both of these are North Carolina corporations. The Carolina Gas & Electric Company was organized in 1916, being successor to Carolina Central Electric Company; its predecessor having been in the electric field in South Carolina for a number of years.

The combined companies have assets of over $17,000,000. Their securities are widely held; and, as before stated the companies are financially strong. However, conditions are now such that it is impossible to provide funds, through ordinary channels for necessary extensions to property. This is the case not only with these utilities, but with all utilities of a similar character. For this specific reason, the United States Government has formed the War Finance Corporation, the prime object of which is to assist public utilities in making extensions necessary for war purposes or public welfare. Many public utilities have found it necessary to appeal to the War Finance Corporation for assistance in carrying pre-war plans to completion. Many loans and advances have been made by the War Finance Corporation to these utilities.

It has now become necessary for the companies herein mentioned, to make application to the War Finance Corporation; and it is for this purpose that the endorsement and approval of above mentioned extensions by the War Industries Board is desired. We are, therefore, making this request that you let us have your endorsement of the extensions referred to, by directing a letter to the War Industries Board, giving them such information as you may see fit, with regard to the nature of the operations of the companies herein mentioned, in order to assist them in reaching a decision as to whether or not these companies and their proposed extensions are essential.

We feel that the extensions proposed will be of enduring benefit to all the communities herein mentioned and to the States of North and South Carolina; that they will also be of great benefit to the Government in its prosecution of the war by virtue of the great saving in fuel through the application of hydro power; by alleviating to a degree and the extreme shortage which now exists; by the increased power made available of our industries engaged in manufacturing supplies for the Government and increased production which will result; by increase in food production, and in other ways.

Trusting you may see your way clear to lend your endorsement, as herein requested, and that you will address the suggested letter to the War Industries Board, sending same to me at Raleigh to be submitted in person to the Board.