I am in receipt of your letter of the 11th inst. informing me that "the Council of State has passed a resolution to the effect that the Statesville Air Line Railroad Company should give a bond for the completion of the road within a specific time, to a point to be agreed upon by the Governor and the Council of State, and to pay to the State the value of the convict labor expended upon the whole road in the event that the railroad should not be equipped and operated within time specified, and to the point agreed upon".

I am surprised at the course of the Council of State. I presume that they are acting under your advice, and that you base your policy towards this road upon the report of Supt. Mann. Mr. Mann has handled the facts in regard to the Statesville Air Line Railroad Company very carelessly, and I feel you are laboring under a misapprehension. The object and purpose of this enterprise is to construct and build a road independent of the Southern Railway Co. with a view to connect with the Seaboard Air Line Railroad either at Charlotte or Lincolnton, and with the Virginia coal carrying roads North of Mount Airy.

The road is being built by moneys contributed by certain townships of Iredell, Yadkin and Surry, aggregating about $350,000. and about $3,000. paid by individuals, which was used in prelimiary surveys. So far twelve miles have been graded from Statesville in the direction of Mt. Airy with a maximum 1-1/2% grade and a 6° curve. The culverts are all in, which consist of the best grade of reenforced and double strength A. 1. terra-cotta pipe for small streams. Please note Supt. Mann's report on this part of the work. Statesville and Bethany Townships have expended $62,000.; the State of North Carolina in round numbers $50,000. The moneys that were raised by the townships above went to equip the force for work with mules, carts, dump cars, shovels, picks, wheelbarrows, tents and camp equipment, and about two miles of 16 pound steel rail for use in moving dirt with the cars from the cuts, after the same is loosened up with powder, and convicts are only used for shoveling the loose dirt into the cars. We maintain a free labor force of 35 to 40 men, who are paid, with the exception of five foremen, every two weeks by regular pay roll in cash, for which every man signs for the amount paid. The foreman, five in number, are paid the first Saturday in every month, four of whom receive $50. per month and one $60. We use practically one car load of powder every sixty days.

People experienced in railroad construction have informed us that in our operations we are working convict labor to the very best advantage to the State and to the Company. As an evidence of this Mr. F J. Lisman and Mr. J. A. Mills, who are financing the Elkin & Alleghany Railroad, visited our works and inspected our road in April, 1912, and approved our method of working convicts, and grading our road. And soon thereafter Mr. Mills visited Statesville, and bought from J. C. Steele & Sons several dump cars of the same make as used upon our road, to be used in the construction work of the Elkin & Alleghany Railroad. How does this compare with Supt. Mann's report?

In regard to Supt. Mann's report we beg to state further, that in his three visits to Statesville he has never called upon the officers of this company, nor sought directly or indirectly any information from them in regard to this enterprise, or even let them know of his presence in the City or community. He has never been over the road, nor has he spent more than thirty minutes at the Camp on either of his visits. As to where he gets the information upon which he bases his report is an enigma to the writer.

I am informed by a reliable authority, that on his first visit to Statesville he arrived on the night train, spent the night at Hotel Iredell, left about 9:30 next day, drove to the Camp, spent about twenty to thirty minutes, and from there he proceeded to Elkin, did not even go to the road or any part of it, where the construction force was at work, neither did he see any part of the railroad bed, except at points where he crossed the same on the dirt road from Statesville to the Camp, which consist of two points near Fourth and Fifth Creeks, one 2-1/2 miles from Statesville and the other 6. The same thing can be said of his recent trip, which he made from Elkin by way of camp, when he was conveyed in automobile together with Mr. Varner and one other director of road Mr. W. M. Westmoreland of Statesville, N.C. in his machine. Mr. Westmoreland and also foreman at the Camp informs us that he did not even go about the road at or near the camp, or any point between camp and Statesville except crossing the road at the two points named above.

In view of these facts I do not see how you and the Council of State can even give his report serious consideration. It is not just to you, as Governor of the State, to the people of North Carolina, and especially to that part of the people of North Carolina, who are aiding in the construction of this enterprise. Surely Mr. Mann must have been dreaming about the facts and conditions of that road that he built practically with State Aid alone from Fairfield to Bellhaven in Hyde County.

If you will examine your office you will find that we have given a bond that the Council of State required of us some two and a half years ago, which bond was signed by more than forty of the most substantial men of Iredell County. There was an effort to discredit us before the Legislature. This failed, and the policy was adopted to complete these roads according to the original purpose wherein the State had agreed theretofore to furnish convicts to aid in the construction of said road. I hope you will not reverse this policy.

I will submit your letter to the Board of Directors, to the citizens of Statesville and other communities interested, for their consideration, and will communicate with you further in regard thereto if it be necessary.

In the meantime I beg to assure you of my confidence and esteem, and best wishes for you personally and the success of your administration.