The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-05-24
Finds No Corr
ruptiOn.
Continued from Tenth Page)

from the scene of the transaction. &C
counts of this log business should "
yplaced in the hands OF the agents an,
they should report to the Auditor anu
settle with the Treasurer in the same
way as for other business. TT Is snoWh
that besides the log account certain
other funds passed through the handS
of the SUPERINTENDENT. Payments Tor
chartered excursion trans are NIUE
direct to him and no account htlu VIZ"
the Auditor or treasurer. nc ""
also been accustomed to sell 10 any
and all applicants mileage books
which he takes from the stored room
and to account therefor To the Treas
urer Some of the mileage books not
shown charged up to agents nor 10
be found i'm the supply on hand were
thus sold by the superintendent and
the cash therefor is shown in the
Treasurer's report under the head IT
regular Passenger" 1t is not u he
supposed that we are either charging
or suspecting the superintendent OF
falling To account for all funds which
have passed through his hands but
we do say that he should not bc re-
CURED TO handle one dollar of the
company's revenue under any cireum-
stances and we say, further that the
system outlined above gives the super
intendent opportunity To do rs he likes
With the money coming into his hands
since there is no check against him
and no bond for the protection of the
the company. Ii is shown by the teS-
timony that these accounts have been
handled in this way for AZ laest twen-
" years.
Charge In Reference 10 the Purchase
and Management OF the Atlantic
Hotel.
Whether the purchase by the road
Of the Atlantic Hotel was lawful or
not. (and the committee thinks It was
not. LII the reason that the purchase
~ lteuance OF hotel is not au-
by the charter OF the COM
nd that in Section l OF Chapter
Public Acts a. 1883, comforting
railroads generally the right To
vchase and operate hotels, eating
kbuses, etc, such privilege is expressly
Withheld from any railroad in which
1.-THE State has Il pecuni2ry lntereSD, X
would seem pretty clear that il was
not wise. The history OF resort hotels
in North Carolina as a whole has not
been such rs TO encourage Investment
in this class of property with the hope
Of profit. The shortneSs of the sea-
son and the expense of maintenance
which continues throughout the year,
repairs and renewals have contributed
TO make most of such properties bur-
denS instead of profitable investments.
The fact that more than Sl25,O00 haa
been spent on the Atlantic Hotel first
and last at the time of the pure hase
by the railroad, and that the result OF
all this money and labor was he'd at
only $4,000, tells quite plainly that
this property Was not al eX-
ception TO the rule. It is
urged that it was the purpose
of the owners to discontinue the oper-
alton of the hotel. and il was said that
IL would not again be open Tor guess
operate 1t. Remembering that the rail-
road company received considerable
revenue from passenger traffic 10 this
point, il is but natural that this arSu-
ment should have had great weight
with the directors. They seem not TO
have seen the practical admission car
ried by this expressed purpose that
the operation had not been profitable
or satisfactory to the owners who were
seeking to sell. 1t was apparent that
q large sum of money would be re-
quired to put the property in good
condition, and instead OF S14,000, the
purchase price, it was recognized by
all parties that it would require a total
investment of something IKE S50,OOO
to put the property in first-class shape.
1t is a matter of common knowledge
that it is usually more expensive for
an industry or business OF any kind
than for a capable individual to do
the same thing. This is especially
true of municipal. county or state
governments, and we think it should
have been clear to the officers OF the
road that they were buying trouble.
We do not believe that the hotel can
be made profitable under railroad or
State control, and it seems TO us that
it should be the aim of the road TO
lease the hotel, whatever the fate Of
the road itself may be.
There are many charges and coun-
ter-chargeS of extravaganza, misman-
agement and even corruption in the
management of the hotel last year 1t
is said that the officers of the road
including the directors and State ofll-
GERS were entertained free of cost or
a nominal rates. and That various 9TH
or persons were not required to pay
leir bills. So far as we have been
able to ascertain there is no real foun-
dation for this charge. 1T is true that
a banquet was given to the officers OF
the State Guard before the place Of
encampment had been selected. 1t Is
true that entertainment was given in
exchange for advertising, but we see
nothing unusual or extraordinary in
this. On the other hand it appears to
US to have been a proper means of
is usual and customary course with
all resort hotels. We do not think
either that the special rate of 81 per
day which was charged the directors
was unusual or undeserved They were
charged with the direction and man
agement of the hotel as we'll as the
railroad and ii seems to us no more
extraordinary that they should have
privileges and courtesies from one than
from the other.
1t appears to be true that there w9s
n lack of care in the employment Of
a manager. and after his employment
he was allowed to have complete con-
troll of the property The income went
into his hands uncounted, and there
were no restrictions whatever on his
expenditures. Neither the directors
nor the officers of the company seemed
to have thought it worth While to
check against his account. and the evil
dence shows that none of them had
the slightest personal knowledge OF
the financial status OF the hotel at any
time during the season Late in July
the manager appeared before lhe
board of directors and stated verbally