The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1860-08-28
From the 5000 900, then, taken as the

From the 100000, then, taken as the
excess of expenditure Oh the work in
South Carolina and Georgia, you must
deduct the overcharge to the work Of
s149, 100, and also the ovcrchargc Of $780,
COO, which results from your short esti-
mate of the work in Tennessee, and also
s54, 900 you overcharge for engineering
in South Carolina and Georgia. TO these
sums must be added the following items,
which, in the Trcasurer's report, are in
cluded in the sum total Of S2,594, ,712,
which sum total, in your statement, is
charged as the amonnt of the cost Of the
work in South Carolina and Georgia !:
First you charge the total Of expense,
salaries, legal advice, suit of Bangs & Co.,
S79. .2S9," to South Carolina and Georgia.
These charges are for the common benefit
and defence of the roads Of each State,
and, like engineering, should be charged
in the proportion OF the length Of the road
in each State The portion of South Car
olina and Georgia being in the ratio Of GO
miles to 126, would be $4,000. In this
item you have ovcrchargcd $1,000 The
cost of the right of way in North Carroll
M and Tennessee, s9,9SS, which you have
charged to South Carolina and Georgia,
is a manifest ovcrchargc. So is the
amount educ by sundly Contractors"
s9,311. This amount being for advances
or loans to them on the security of their
work, was refunded when payment was
made to them for future work. So, also;
you have wrongly charged "transporta-
ton expenses" s4,102, being the expense
of running the road between Anderson
and Pendleton, and the REPAIRS Of the
road" S1,791. Against these two last
charges you will find on the opposite col
umn received for transportation s9,345.
You have also charged the amount 'due
by Arson Bangs & Co.: s2,0s2." In the
opposite column you will find an entry Of
''intercst due to Anson Bangs Il Co., S633,
and Immediately above that entry anoth-
er of '.interest in suspense Sl025. This
is also due to A. Bangs Il Co. twas re-
taincd on notice Of an adverse claim
which was afterwards abandoned. These
items are set off against the s20S2 due
by A. Bangs T. Co., and make another
item Of overcharge to the amount of
Sl6SS.
Loss on the sale of bonds and stocks"
S37 $50. you also charge as an cxpendi-
turc for the road in South Carolina and
Georgia. 1t could not be expended for
anything, for it was never received. The
State and City of Charleston paid their
subscription in bonds at par. The dis
count on the sale of the bonds was short
payment of subscription. That is anoth-
CT ovcrchargc.
You also charge interest on mortgage
bonds, $+l, ,705, to the cost Of the road in
South Carolina and Georgia. This sum
was certainly not expended in payment
of work. 1t must appcarin some account
Of the Company but is out of place in the
account of expenditures. 1t is an item
similar to discount on the sale of bonds.
1t is not received, nor is it expended on
the road, and cannot be charged to ex-
pcnditures for the work II the interest
paid on bonds is to be charged to the cost
of the work, q construction account could
not be closed until thc bonds arc paid.
For, no reason can be given why the
charge of interest, if made to the cost OF
the work, should cease when the road is
finished If interest on money borrowed
is to be charged as an expenditure for the
work, so, also, should interest on the cap
ital stock paid in be also added to cxpcn-
diture If the stockholders borrow one
hundred thousand dollars on bonds, they
: pay interest on that amount. If they
pay up capital stock to that amount they
lose the interest on it. There is no moro
reason to charge interest on the bonds fol
money borrowed to the cost of the work
than to charge intercs5 on capital paid in
So that you might have made much
more fragrant case of the "excess of cx
penditure for the work" in South Carroll
na and Georgia, cover the estimate" i
} you had added the interest on the capita
stock paid in, as we'll us the interest OF
bonds
The aggregate for all The overcharge'
for expenditures on account Of the worl
in South Carolina and Georgia, which