The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-05-24

the property. Who will saw thew did
not have the right to say how many
should compose the Proxy Committee?
We may agree they acted unwisely-
as we are sure they debut we can
not 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 a supply of wood. The commit
! tee, however, tells that the wood sup
ply is getting to be a serious question
with the company. The consumption
of timber by the large number of
| mills and other enterprises along the
| line of the road and the scarcity and
uncertainty of labor forced the man
| agement to adopt some method that
would insure the needed supply of
wood, for without wood the trains can
not move. The method adopted is
| open to criticism-nay to condemna-
| ton. A management more mindful of
| the true idea of public service and of
appearances would have adopted a
| different method. at least in some OF
| its details, but there are some things
about this matter which must impress
| the fair-minded reader as extenuating
| the improper method adopted. What
was done was done openly and with
=
| 1t has resulted in securing a supply of
wood at the market price. There has
been no loss to the company and there
was no corrupt motive in the method
adopted or in it's execution.
The purchase of the Atlantic Hotel
is a matter about which honest men
may differ. In this matter, too, the
management was confronted with
serious problem. To close that hotel
meant a serious loss to Beaufort and
Morehead City and to the revenues of
the road in passenger traffic. 1t was
believed that if the property was put
in good condition and run in cOnnec-
ton with the road it could be made
There is nothing wrong i'm a railroad
owning or running a hotel. Many
railroads whose terminals are at wa
tering places own and run hotels, not
for the profit in the hotel business,
but to secure travel for the road that
it would not otherwise receive. Ought
the Atlantic & North Carolina Rail-
road to have bought the Atlantic Hotel
and conducted it? We say these are
questions about which honest men
may differ and did differ. 1t is I'M
fortunate that the first years venture
did not have fair trial. AS it turned
out a serious mistake was made in the
selection of a manager but we submit
| that it is not fair to condemn the ven
| ture upon one years experience with
manager who, after making affida-
Wits rejecting upon the management
of the road, hides so that nobody can
probe him. The hotel property has
been greatly improved and with its
fine electric light plant and all i'm
provements stands charged to the
railroad company at less than half its
original cost. 1t may be that the own
ership of this property by the compa-
ny has something to do with the in
oreasing bids that have been offered
for lease of the road
The committee criticises some of the
expenditures made in permanent inn
provements. They say the expendi-
| lures were larger at some points than
were needed, and less at others. But
this fact stands out all the way
through the report to-wit: That in all
things criticised or condemned by the
committee it was matters of judg-
ment. NOWHERE DOES THE COM
MITTEE FIND THAT ANYTHING
CRITICISED OR CONDEMNED WAS
THE RESULT OF CORRUPTION.
Nowhere does the committee find that
the management did not believe il was
acting for the best interest OF the com
pany.
There is another thing which the
committee find that we wish to en-
phasize: They say at the end of their
report that the Atlantic & North Caro-
lima Railroad sis very valuable prop
erty and that its condition and earn
ing capacity have been GREATLY
IMPROVED DURING TIE LAST
-FOUR YEARS"
They further say they ''sec nothing
in the situation to call for great haste
on the ore hand or extreme action on
the other in reference to any proposed
change in the control and operation
of the property"
These are words of wisdom, uttered
by men who have spent days and
weeks in a full and thorough investi-
cation of its affairs. Gradually and
by degrees a valuable property has
been developed and built UP between
Goldsboro and Morehead City. and it
would be worse than folly, just as it
is ready to yield income to its owners,
to take fright at the false charges
made against it and be driven into an
ill-advised disposition of it. II only