The Caucasian. (Clinton, N.C.) 188?-1913, 1907-10-17
NIB. PAGES LETTER.


when He Owned No Stoek--Ho~
Much Money and ho~ Mary free
Passes Has the News and Observer
Received from the Railroads
The News and Observer printed .
few days ago the following letter
from Mr.. Henry A. Page, president
Of the ASHORE and Aberdeen Rail-
road. Mr.. Daniels has not 81 yet
satisfactorily answered the questions
propounded by Mr.. Page. The let
ter is as follows:
To the Editor Il fully agree with
you that all expenditures made by
railroads should, In the light of an
awakened public conscience, be made
for proper purposes and in proper
amounts to compensate for the SER
vices rendered, and no greater. l
also agree with you that the inves-
tigation now being made should be
thorough and that 1t should go back
to include the period from 1898 to
the present time.
If the public Is entitled 10 know
how the Southern Railway spent its
income, because that road Is contest
Ing the 1t cent rate. 1t Is also enti-
tied to Information about the Sea
boards Air Line expenditures, for
this latter road also has a suit in
court the purpose Of which is to
annul the 2t cent rate law. There
seems to be no convenient way of
getting at the Seaboard's books just
at this time, but the payment of
$500 or $4,000 by the Southern
Railway to The Evening Times for
advertising suggests to my mind the
possibility that other roads might
have made similar payments (simi-
lar in purpose if not in amount) to
other papers. Your very severe con-
domination of The Times and Presi-
dent Drewry for accepting this
money seems to indicate beyond
question that you think it was as
bad to receive this sort of payment
as it was to make it. "The Old
Reliable" enjoys such firm hold
in the confidence and esteem of the
people that it would never be sus-
pected of accepting money from q
railroad under any conceivable cir.
cumstances. However, a little incl
dent came under my observation
in 1904 when I was helping to in
vestigate the Atlantic and North
Carolina Railroad for Gov. Aycock
that 1 have thought about it often
since, and it now recurs to me and
suggests question which am sure
you will not object to having me
PROFOUND. But the incident first.
1. 1t appeared from the records
in the Secretary's Office that Mr..
Henry Bagley, the Business Manager
of the News and Observer, was at
that time a director of the Atlantic
and North Carolina Railroad, by ap
pointment of the Governor. When
we came to examine the stock rec
lord we found that Mr.. Bagley was
not a stakeholder of the company,
and therefore was not eligible to
hold the position of director. It was
!, explained by some one whose name
I will not now call, that Mr., Bsgley
had promised at the time Of his ap.
pointment to qualify himself for the
position by obtaining stock. It was
further explained by another gentle
man whose name I will not now
/. call, that he 1.-THE speaker) had prom
, ised Mr.. Bagley at the time of his
appointment that he would borrow
, two shares of stock from a certain
, large stakeholder and have them
transferred to Mr.. Bagley On the
books, and had forgotten to attend
to it, and Mr.. Bagley had occupied
{ the position of director for about {
Iyear without holding stock. 1t trans
, pired that the whole difficulty was
| settled then and there in the pres
/ ence of the investigating COMMITTEES
; by the transfer of two shares Of
stock from the name of the afore
Imentioned large stakeholder to Mr.
Bagley's name, neither Of the gen
tlemen being present nor having
, been communicated with. I learned
D further that at the time Mr.. Bagley
held passes over the Southern Rail
way and Seaboard Air Line by vir
1 tue of his position as director o
8 the Atlantic and North Carolina. 81
much for the incident. 1t appear
from your treatment of "directors
passes" when Messrs. Cone and Coz
were involved, that you do not thinl
a great deal of free riding shoult
be shoveled out to persons holdln,
this position, even by the roat
which they help to direct. Nov
for the question: What service, i
any, was rendered by the News AMI
Q Observer to the Southern Railwa.
Q aud to the Seaboard Air Line IL
return for the passes issued to Di
l rector Business Manager Bagley?
81 2. And this suggests anothe
i Question The News and Observe
J. has been carrying the schedules an,
!. printing notices for the Seaboar'
9 Air Line for many years. In view
!. of your recent editorial utterance
d on the subject of railroad advertise
: ments and payment therefor, it mus