June 11, 1915.

Dr.

,
Murphy, North Carolina.

Dear Doctor:

Enclosed find copy of an opinion by Attorney General Bickett in the matter of convicts for Hiwassee Railroad. A copy of this opinion has been mailed to Governor Craig, at Asheville. I think it would be well for a delegation to call on him. I am satisfied that a way can be found to have the prisoners sent to your road.

I called on the State Treasurer yesterday morning in company with Attorney General Bickett and M. L. Shipman and went into the matter of just how the matter of credits to the State Prison were kept in his office with respect to the stock received by the State in other railroad enterprises, the Elkin & Alleghany, Statesville Air Line and the Watauga Railroad. We found that the State Treasurer held this stock and at any time when it became necessary to place some of this stock to the credit of the State Prison to keep his books from showing overdraft it was done, but up to this time only $24,000 has been credited this year, the policy of the State being to to only allow the profit in excess of maintenance to go in enterprises of this kind. Of course, it is contemplated that when the crops from the State Farm are put on the market this summer and fall, that this money drawn from the State Treasurer will be replaced and when the Legislature meets again the profit on earnings of the Penitentiary in excess of maintenance will be covered in the State Treasurer. In other words, this matter of stock in these enterprises is simply used as a bookkeeping proposition; for example, you may have an account with your bank doing a large business, you place $100,000 of stock worthless, or otherwise, in the bank with the understanding that in case of overdraft that the bank may place from time to time such amount of this stock to your credit as may be necessary to keep his books from showing an overdraft against you, and when you have placed funds in the bank to your credit that will wipe out the overdraft, then this stock is withdrawn from your credit, as is done on the State Treasurer's books. I have no doubt that the State Treasurer has enough of this worthless dummy stock on hand if placed to the credit of the State Prison to run it a whole year at the present time.

The Council of State are all in sympathy with your enterprise, and I think if the Governor can be induced to help you that the convicts will be sent to your road.

I have done the very best I could for you and your people in this matter, and am still hopeful that something can be done to secure the convicts for you.

With best wishes, I am,

Very truly yours,

[unsigned]

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