Mr. Stayton has returned, and I have had two interviews with him in regard to our railroad matters, and the following is his statement to me:

1 - That the condition on the other side; namely, in England, is entirely satisfactory, and that Linton, Clarke & Company are practically committed to take $5,000,000 of the securities of the road.

2 - That the taking of $5,000,000. of the securities by Linton, Clarke & Company practically assures the taking of the remaining $5,000,000. by other parties.

3 - That the condition on this side is not satisfactory, owing to the state of finances of the present construction company; but as to that Mr. Stayton feels that he will be able to remedy conditions here by the organization of a new construction company, and thereby comply with the terms and requirements of the representative of Linton, Clarke & Company.

4 - That it will take him the remainder of this week, or all of next, to make such efforts and investigations as are necessary, so that he can find out whether he can organize the said construction company or not.

5 -  That he would most earnestly request that the convicts be left in status quo until the situation is settled here.

The above statements are repeated to you as made to me by Captain Stayton.

As stated to General Bickett and Dr. Joyner, I hope that it will be possible for the Council of State not to interfere with the convicts at the present time, as I am here on the ground and know the situation, and I assure you again that as soon as I see that a new construction company is not going to be organized and the work properly carried on, I will immediately notify you, and will recommend that the convicts be returned to the State Prison.

I can see no reason, however, why the construction company cannot be organized here to spend the money already arranged for to build this road, and it would be sad indeed, and an incalculable loss to the State if, after all these years of hard work, when we have at last succeeded in getting the bulk of the money to build the road, that we should fail to organize a construction company for the purpose of taking advantage of said money.

I was surprised that you had received no cablegram from Linton, Clarke & Company until I was informed by Mr. Nickerson that Mr. Weyguelin and Mr. Boutell, who are the members of the firm of Linton, Clarke & Company having charge of this proposition, were both out of London last week, it being a bank holiday; but the matter, I am assured, will be taken up by them immediately upon their return, and I hope you will receive a satisfactory message from them.