The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1904-05-26
OUR RALEIGH LETTER.
Report Of Committee Investigating 4. &
n. C. Railroad, and Other News
from the State Capital.
GORMAN NEWS BUREAU,
RALEIGH. n. C.. May23, 1904.

The report of the special committee,
which has been investigating the physi-
cal and financial condition and manage
ment of the State railroad, has been in
the hands of the Governor since last
Thursday evening. But it will not be
released to the press for publication I'M
til tomorrow Tuesday,.
However. through the courtesy of
Gov Aycoek, this writer has been per-
mitted to glance through the volumin
Gus document. While it is imprati-
cable to attempt a full synopsis OF
the entire report and evidence within the
limited scope of this correspondence, l
will refer as far as practicable to some
of the more interesting portions OF it.
Those who are minded to wade through
the labyrinths OF the entire report can
procure copies OF the supplements to the
Raleigh morning papers which will be
printed this week.
1t is an adverse report, and on the
whole criticises unfayorably the manage
ment of the road 1t begins by stating
that during four years OF the incumbency
of Mr.. Bryan as presd't of the Atlantic &
North Carolina r. R. the company has
earned, above operating expenses and
fxad charges, the sum OF $2ol.7 21:o6.
That during that time the company Dor
rowed $4,000, of which 1927 900 has
| been paid leaving $4,000 still owing,
That there is also to be added the net
earnings for the nine months extending
| from July 2, 1908, to April l, 1904, viz,
! $44, 772.O6, making altogether an ap-
parent total of 1924, 299.62 that has
| available within years and 8 months
| for permanent improvements and extra
| ordinary betterments to the property.
That the committee is of the opinion,
however, that many items have been
charged up to extraordinary improve
| ments that should have been included in
| operating expenses and renewals.
That the system in use OF keeping &C
| count has been crude and very unsatis-
factory" That Every considerable bet
terments over conditions prevailing four
years ago should have been effected by
| the expenditure of so large a sum OF
money That while the service has
| been greatly improved within the period
covered by Presd't Bryan's administra-
ton, and much Of this money wisely
| spent. "some Oft has been injudiciously-
in some cases approaching extrava-
gance.
! Mention is then made in detail of the
manner in which the expenditures have
been made, and some of the mistakes and
instances of extravaganza pointed out.
The bad Judgment used in the erection
OF new depot buildings and warehouses,
etc, is especially mentioned, and the re-
port says that too much money was ex-
| pended in this way at GoldsborO and
elsewhere while new stations were bad
ly needed at Morehead, LaGrange, New
port and Dover, etc.
The report very distanctly states that
1.-THE spirit of the law prohibiting free
transportation has has been violated, }"
whether technically contrary to law or
not, in furnishing free passes to per
sons who are not even stockholders.
That, although the bylaws provide
that the proxy committee" shall be
constituted OF ''seven stockholders,
there are at present 35 members OF that
committee, IA of whom do not own a
dollar of stock, and that annual
passes" are granted to all OF these 35
gentlemen.
That the list of local counsel to
whom annual free passes are issusd con-
tains the names of "a more or less promi-
nent men, p of whom do not even re-
side on the line OF the road That it is
not even claimed that these lawyers are
all bonafide attorneys of the road, On
the other hand, at least one OF them has
appeared as counsel for the other side
Gin practically every case the road has
had tried in Craven court during the ad-
ministration of Presd't Bryan"
In addition to this, the report goes on
to say that ''free passes of all kinds IAN
nual passes, trip passes and card tickets)
have been very generously distributed,
contrary to the bylaws of the
company and in violation of the laws of
the State.'
The charges concerning wood con-
tracts and the high prices paid for wood
are taken up and discussed at length,
and not at all to the credit of the man.
agement of the road. concluding with
the statement that the company can
save Sc, 900 or more every year by using
coal instead of wood bought at such
prices. AS to the oil purchase charge,
the committee ''attach but little impor-
tance'' to that.
The part that politics has played in
the management of the road, involving
changes of management with the incom-
ing of the last several State administra-
tons, ETC., is commented on, and the
committee say that while they do not
find that ''broken-down politicians
have been ''unloaded" on the road, to
| IHy CACCuU. UuC 1CSultS dUOuU
by the changes and other conditions
which have followed, are not calculated
to serve the best interest of the property.
AS to the purchase and conduct OF the
Atlantic Hotel property by the railroad
company, the committee vigorously con-
dennis both, and does not mince words
in doing so. But Earle Turner is made
the scape gOat-the young man employ
ed to manage the details of running
the hotel last summer; who succeeded in
running" it in debt for over $4,000
during the three months he run" it,
and who 'mysteriously disappeared
when the committee got ready to hear
his evidence in substantiation OF the
charges he made in affidavit filed by
former receiver McBee. Indeed, the re-
port leaves The impression that Turner
and the sc, 900 deficit are very intimate
ly acquainted
The report says, that the railroad
management bought trouble where it
acquired possession of this hotel prop
erty, for (which it agreed to pay 81
600 (of which $12 900 remains unpaid}
and has spent over $50, 731 since in fur
nishing it and making it habitable.
1t expresses the opinion that the pur-
chase was not lawfully made; that it
certainly was not wise; that it was not
properly managed; that, whatever the
fate of the railroad, the hotel should be
leased without delay to private parties.
After pasci"" ~ other charges. the
commi,,-> -t,;teS that the general policy
Of using the nc t,;::.:.,~s il i;4pro .iug
the road and its property, while it SO
much needs betterments, is approved,
although some of the expenditures are
disapproved.
That during the period covered by the