Col. H. B. Varner expected to be in Asheville to-day and will doubtless tell you of the action of the State Prison Board on yesterday with reference to furnishing convicts to the Hiawassee Railway Co. and also with reference to building the public highway in Halifax County from Halifax to the State farm. I will only say therefore that the Board of Directors of the Prison did not feel in view of the Attorney General's opinion that they would be justified in making the assignment of labor to the Hiawassee Railroad that has been requested.

They likewise felt that the prison at this time was unable to comply with the Act of the Legislature and build the Halifax Co. highway. I enclose you herein a copy of the formal resolution which was passed with reference to this road.

I received this morning a letter from the State Treasurer notifying me that upon the advice of the Attorney General he would not in future give credit to the prison for more than 100 convicts on the Elkin & Alleghany Railroad. I regret very much that this seems to open up new troubles in the administration of the prison. I have replied to Mr. Lacy's letter and in doing so quoted his in full. I beg to enclose you herein a copy of my letter to him. I do not feel that there is anything I can do in the matter, or have authority to do, but will be very glad indeed to consider any suggestions that you may make and convey them to the Board of Directors for their consideration. If you deem it necessary I will call a special meeting of the Board to deal with the matter in such manner as you think best. The next meeting of the Directors will be held here on Aug. 3rd.

I am very glad indeed to see from the papers that you are improving and hope that before your vacation is ended Asheville will have restored your health completely.

I am with high regards and best wishes,