The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1904-06-02
REPORT OF COMMITTEE
Appointed to Investigate the Affairs
of the Atlantic & North Carolina
RaiIroad-Brief Review of Some of
the Matters Discussed.
News and Observer.

administration. He is easily one of
the ablest lawyers in Eastern North
Carolina. He lives in New Berne and
was familiar with all the charges
against the administration and knew
where to look for testimony to sus-
tain them, if it was to be had. He is
not in sympathy, either personal or
political, with the administration.
We can therefore safely say that with
his aid the committee went to the
bottom of every charge.
Now, what do these high minded
men find? We cannot undertake to
review the whole report. We can only
refer to some of the matters discussed.
1t will be seen they criticise, commend
or condemn without fear, favor or
affection.
They condemn the increase of the
Proxy Committee to 30 or 40 per-
sons, when five is amply sufficient,
and SO do we But it must be re-
membered that the administration OF
the road is in no way responsible for
this. 1t was not the act OF the Pres
ident or Board of Directors. 1t was
done by the stockholders themselves
the owners of the property-and it
only remained for the officers OF the
company to carry out the order made
by the stockholders. The stockhold-
ers own the property. Who will say
they did not have the right to say
how many should compose the Proxy
Committee? Wemay agree they acted
unwisely-as we are sure they did
but we cannot say they acted illegally
or that the officers are responsible
for it or that it warrants putting the
road in the hands of a receiver.
The committee criticises-and not
without reason-the method used by
the management Of the road to pro-
cure supply ofwood. The commit
tee, however, tells that the wood sup
ply is gettlngto be "a serious question
with the company. The consumption
of timber by the large number OF
mills and other enterprises along the
liue of the road and the scarcity and
uncertainty of labor forced the man
agement to adopt some method that
would insure the needed supply O1
wood. for without wood the trains
cannot move. The method adopted
is open to criticism-nay to con
demnatiOn. A management more
mindful of the true idea OF public ser
vice and of appearances would have
adopted Il different method, at least
in some OF it's details, but there are
some things about this matter which
must impress the fair-minded reader
as extenuating the improper methot
adopted. What was done was done
openly and without any secrecy o.
pretense at secrecy. 1t has resulted
in securing a supply OF wood at th'
market price. There has been no los
to the company and there was NJ
corrupt motive in the method adopt
ed or in it's execution.
The purchase of the Atlantic Hote
is a matter about which honest mel
NAV differ. In this matter, too, tn
management was confronted with ;
serious problem. To close that hOte
meant a serious loss to Beaufort an
Morehead City and to the revenue
of the road in passenger traffic. l
was believed that if the property wa
put in good condition and run in cor
nection with the road it could b
made profitable in itself and to tn
road. There is nothing wrong in
railroad owning or running a hote
Many railroads whose terminals ar
at watering places own and ru
hotels, not for the profit i'll the hott
business, but to secure travel for tn
road that it would not otherwise n
ceive. Ought the Atlantic 4 Mort
Carolina Railroad to have bougf
the Atlantic Hotel and conducted it
We say these are questions abou
which honest men may differ and di
differ. 1t is Unfortunate that the firs
years venture did not have a ia
trial. AS it turned out a serlor
mistake was made in the selection {
a manager, but we submit that it
not fair to condemn the venture upO
one years experience with manage
who, after making affidavits retiec
ing upon the management OF tt
road, hides so that nobody can prOl
him. The hotel property has bee
greatly improved and with it's fiji
electric light plant and all improv
ments stands charged to the railroa
company at less than half its origin
cost. 1t may be that the Ownersh
}. of this property by the company h;
= something to do with the increasil
bids that have been offered for
lease of the road.
I The committee criticises some
the expenditures made in permane
improvements They say the eNpent
lures were larger at some points th'
were needed, and less at Others. b
this fact stands out all the W;
|, through the report, to-wit: That
all things criticised or condemned
the committee it was matters Oflud
ment. NOWHERED DOES THECO
}, MITTEE FIND THAT ANITH1N
CRITICISED OR CONDEMNED W.
THE RESULT OF CORRUPT1O
Nowhere does the committee ii
|, that the management did not belle
l, it was acting for the best interest
the company.
- There is another thing which t
\ committee find that we wish to e
phasize: They say at the end OF tn
report that the Atlantic & North c;
Ilolina Railroad lis a very valua|
property and that its condition a
earning capacity have been GREA
ACKNOWLEDGEMENTS THE La
uEFOUR YEARS.
They further say they ''see nothi
in the situation to callfOr great ha