The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-05-03
The Expected Has Hap
pened.
Continued from Page One)

by bill vouched February 81 1903
That on March 4, 1904, the company
had on hand, cash $1,376.S4 and no
other available funds and no current
collateral upon which money could be
borrowed to settle the account. anu
the company had also outstanding
notes to the National Bank Of New
Bern for loans to the amount of $14-
600, notes due to the iCtizens Bank of
New Bern for $4,000 notes
to j. j. Wolfender for wood land
for $S91.00, notes to the Hardie-
Tyne Manufacturing company for
electric light plant at the Atlantic Io-
tel for $1,579, and notes to J. II.
Mackburn for real estate for $2,0S5.
Then come some quotations from
the requirements of the Board of Di-
rectors, and time your orator is in
formed and believes that besides all
the above there are other outstanding
obligations the amount and charac-
ter OF which are unknown to your
orator. It is alleged moreover that the
officers in control of the affairs of the
company act in disregard of the char
ter, for instance the name of w. "a,
Bagley does not appear among the
stockholders in President Bryans re-
port of September goth, 1903, but APP
pears upon the Board of Directors.
| the Board has failed to meet once in
two months and has kept no record
of its proceedings, many of the en-
ployes have failed to make proper re-
turns the President caused the name
of the company to be placed as surety
upon the bond of one of the ontrac-
tors to indemnify private parties
against loss and also advanced ne
funds of the company to buy outfit
and pay employees of said contractor,
| and paid for putting in side tracks
on competing line without authority.
the President employed Charles II.
Busbee, one of its directors. attorney
for the company, the President paid
himself salary of $4,000 a year, a
committee of ga was appointed to YER
ify proxies, eight of them not stock
holders, and to each was given a pass,
thirty-five persons were appointed as
attorneys, getting passes and only
eight living upon the line of the road
(same old story; large number of
mileage books were unaccounted for
for the purpose of favoring the Ma
tional Oil Company. corporation
owned and controlled by personal and
political friends, the officers of the
company purchased its supplies from
the said concern at much higher
rate than the same quality of oil was
offered by the bidders. (Same old Nc
Bee story.
Then comes the familiar, threadbare
story of the alleged desire TO lease the
road by many of it's stockholders, the
retirement Ct the States proxy from
tho meeting in September, 1903, and
al the same old Finch story about
his being instructed and directed by
the Governor not to attend the adj
iourned meeting and SO prevent the
lease.
After this comes the same old Finch
story about what President Washing
ton Bryan said in his report for 1886
that the road ought to be run purely
for business reasons and not for pO-
Iitical reasons, and his regret that all
the stock was not owned by private
parties; then the same old Finch story
Of 1.-The anomaly of q minority voter
controlling or directing the will of
the maiority voters by a laWless and
revolutionary method" and the "in-
ternal dissensions and disagreements"
that have arisen therefrom and
threaten the dissipation of the cor
porate assets.
Next is the allegation about the di
verting to purposes foreign of the
funds of the company, the purchase
of the Atlantic Hotel for $42,848.42
(same old Finch story conducted at
a loss of $4,000 during 1903 caused
by the free entertainment of friends
of the officers and others (same old
McBee story.
1t is stated that this suit is not a
collusive one to confer on court of
the United States jurisdiction of q
case of which it would not otherwise
have cognizance,' also that the
stockholders have made every effort
to secure action o nthe part of the
managing directors, notwithstanding
that majority of them were APP
pointed by the Board of Internal I'M
provements of the State of North Car
DINA and are hostile to your orator
and to the purposes of this bill"
Following the bill are the affidavits
of j. T.. Turner and Mary Baker
| (same old McBee aftidavits).