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

to which were attached drafts upon
| the company for legal expenses, ana
| one for $10925 attorneys board NJ
! Raleigh" all dated i'm 1901, were laid
! before the committee and upon inves-
/ tigation were found to be expenses i'm
! CURED in opposing affirmative action
| by the General Assembly at its session
! Of 1901 on proposition made or pro-
! posed TO be made for the purchase
! of the States interest in the Atlantic
ana North Carolina Railroad Com
! pany.
These expenditures were made and
approved by the president Of the COM
pany, under authority OF "A resolution
ADOPTED by the board Of directors at
a meeting held on the 14th day Of
december, 1900, as follows: Re
| SolVed, That the president be empow-
| efed To employ counsel and take ac-
| tlon for the protection and security of
the property and interests of the com
pany."
Your committee seriously questions
the power of the directors to authorize
such expenditures. and therefore can
not approve the same as having been
! properly made.
The General Assembly had the right
and power, If it saw fit to do SO. to
dispose OF the States stock in the
railroad, and If the officers Of the
or the towns, cities ana counties along
the line OF the road desired, for rca-
sons satisfactory to themselves and IN
the interest of their section OF the
state, to maintain the status quo and
! retain the management of the road,
! their opposition to the sale of the
StHte's interest by tho General Assem-
/ bly, should have been conducted at
their own expense and not At the cost
! OF the company.
Your committee, while disappearing
Such expenditures, do not believe that
the directors authorized them with any
! intention to make an Improper use OF
the company's funds. but through in
advcrtencc and without carefully con-
| Sidermg the relations between the
company and the State.
Considering the financial condition
OF the road during the period OF the
present administration-July LIST, 1899
To March 31st, 1904 four years and
! nine monthS--we would say: During
this period no dividend has been de-
clarcd or paid, and the net earnings
have been applied TO the betterment
ana Improvement OF the property. We
have heretofore commented on these
expenditures i'm detail. While we
have been obliged to question the wis
dom of some of these expenditures
the general policy of applying the net
earnings to needed betterments in
stead of paying dividends at the ex-
pense OF the efficiency Of the service,
has resulted i'm great Improvement in
/ the physical condition OF the property,
and better facilities for handling the
business of the road. In view OF the
I fact that the company still needs de-
4 pots at LAGRANGE $4,000, Dover
1 ($1.500), Newport ($1.200) and More
/ head city (S2.00O), and that the float
/ ing debt amounts to $46,086.7S, we
/ think this policy should be continued
until this debt is paid, and the depots
4 built and paid for.
/ The total sum which seems 90 have
/ been available for betterments and
and nine months, July 1st, 1899, to
/ March 31st. 1904, appears from the
/ annual reports and accountants
| statement to have been S324,499.62.
made up as follows:
Net earnings. year ending
June 80, 1900.........s 62.113.43
| Net earnings. year ending
| June 80, 1901. ...... 55.961.21
| Net earnings, year ending
June so, 1902. 57,823.75
/ Net earnings. year ending
June 80. 1908. .. 75,S2s.17
/ Net earnings, nine months
! ending March 81, 1904. 44,772.06
! Money borrowed SIS. 900
/ Less Repayments... $4,000 2S,000.00
$324.499.G2
: A statement covering cy-
! penditures on account OF
/ permanent improvements
| compiled by Messrs.
Ahearn and Haigh from
the books of the Auditor,
and submitted herewith.
/ shows in detail eXpendI-
lures during the period
| mentioned for this ac-
count the sum Of. $3.50, 1858
| Leaving .............$ 41.263.43
! Deducting cash on
hand ..........$ S,120.5S
| Deducting loss on
| hotel operation-6,4 1867 14.607,55
I Leaving to be accounted
lOI ...........A SO,Oob.SS
We have before mentioned the fact
| that the system of keeping accounts
=