First Time in Six Years the State Prison Has Profit. . . Operations Resulted in a Profit During 1925 According to Report by Scott, Charnley & Co. . . . The Prison Is Now Self-Supporting. . . . The Prison Facilities Now in Excellent Condition—A New Era of Independence Is Begun
Raleigh, March 29—For the first time in six years, operations of the North Carolina State’s prison resulted in a profit during the calendar year 1925, according to the report of the audit made by Scott, Charnley & Co., public accountants of Charlotte, made public today by Governor Angus W. McLean.
The total net operating profits for the State’s prison as a whole for the calendar year amount to $42,543.31, but when the amount paid to prisoners upon their discharge for themselves and their families in commutation, $24,449.88, is subtracted, the profit is reduced to $18,093.43. Strictly speaking, that entire amount should not be deducted, since a large part of that commutation accrued during previous years, but, with the system of bookkeeping now in use, there is no other way to calculate.
But the feature of the entire report is that the prison is now on a self-supporting basis for the first time since December, 1920, the last time a report showing a surplus of income over expenses was made. Not only that, but the balance sheet of assets and liabilities shows $2,748,353.55 worth of assets in excess of liabilities, a gain of more than $600,000 over the figure of 1924, which was $2,117,657.26. That means that a large amount was spent during the year on permanent improvements to the prison system and gives added significance to the net profit shown.
The prison facilities, viewed as an industrial plant, now are in excellent condition, the report show, and there is every reason to believe that a new era of independence is begun for the State prison.
For many years the prison was operated not only on a self-supporting basis but in such a manner that it was able to turn over to the State each year nice sums in profits from operations over all expenses. Little difficulty was experienced in finding profitable labor for all able-bodied convicts; expenses for sustenance were low and, consequently, sizeable profits accrued.
As far back as 1915, however, a change in attitude toward the penal institutions became noticeable. Organized free labor began strenuous objections to the hiring out of convicts in a number of the occupations which had resulted in large profits and it began to be hard to find work for all the men who were able to do gainful labor. Pressure began to be brought for higher standards of living for convicts and the demands had to be met.
As a result of these factors, and others, it became increasingly hard to show profits each year and, since that had become almost a part of the State’s ritual, various kinds of economies were put into practice to meet the decreases in revenue.
By December, 1920, the surplus had been reduced to $19,000, which was the last figure shown in that column in the annual reports. But, not only had the profits been all but wiped out in those last few years of financial independence, but buildings and other facilities had begun to show ill effects from the system of rigid economy and a good share of the revenue in the past six years has had to be devoted to repairs in existing facilities and additional improvements, which, except for the seemingly necessity for scrimping and saving in the earlier years, would have been spread over 10 years instead of being packed into six.
That, and the steady increase in the number of prisoners, accounts in a large measure for the profitless reports of the past several years.
As late as June 30, 1925, a deficit of some $160,000 was shown in operations for the fiscal year, but that was due, in part, to the fact that the crops then were in the ground and, strictly speaking, could not be counted at their full probable value as assets. Incidentally, the cost of putting those crops in the ground was estimated at $198,000 and their total value in the present report, both from actual sales and inventories of stocks on hand, is shown as in excess of $240,000.
Nine of the prison units showed profits for the year, the two farms at Caledonia and Cary and seven of the eight convict camps.
From the front page of The Concord Daily Tribune, Monday, March 29, 1926
newspapers.digitalnc.org/lccn/sn92073201/1926-03-29/ed-1/seq-1/
