The News And Views

Umstead, Olive Exchange Charges Over Commission

RALEIGH (P - A statement issued Sunday by gubernatorial candidate Hubert E. Olive has touched off a heated controversy between Olive and his chief opponent, William B. Umstead. Olive charged that the State Utilities Commission is dominated by Umstead supporters and is all set to grant a big rate increase to Duke Power Co., a client of Umstead's Durham law firm. In a sharp reply yesterday, Umstead labeled the charges "unfair insinuations." He also called Olive's statement "a cry of desperation." Umstead declared that he has never appeared before the Utilities Commission "for Duke Power Co. or any other power company in a rate case." In his statement, Olive also predicted that the commission will grant a 2 1/2 million dollar a year rate hike to Carolina Telephone and Telegraph Co. This drew a statement from Commission Chairman Stanley Winborne, who termed Olive's prediction "guesswork." He also said it was "ridiculous" to suggest that the fact that some members of the commission favored Umstead would affect the decision in the Duke rate case. In a counter-statement, Olive said he will leave it to the commission "to prove whether my prediction of substantial rate increases for Duke Power Co. and the Carolina Telephone and Telegraph Co. is guesswork."