In my letter of the 2nd inst I misled you in reference to the amount of $2,454.98 which was advanced by the Commissioners of this Road to the Penitentiary Board. I did not mean to say that the “understanding” That this amount was to be allowed This Road as a credit on settlement, was made with the former Governor Treasurer or Auditor, and will explain more fully now.

The Penitentiary Board rather hesitated about sending convicts up here in the first instance, because the appropriation for the Penitentiary was nearly exhausted & the additional expense of moving the convicts, building quarters &c&c would require more money than had been appropriated. The State Treasurer had intimated that he would advance nothing beyond what was allowed by law.

The Commissioners of this Road then proposed to the Penitentiary Board to advance $2,500 which could be repaid when the new appropriation should be made or better, that the amount could be used a part payment of what this Road should be due the State on earnings for the first six months.

This is the way I have understood the matter, but as I know it only from hearsay, I cannot vouch for its absolute correctness. When I sent the balance of $3,716.71 to the State Treasurer, I did so by direction of the Commissioners & thought that the required reports had been made & that everything had been arranged.

In old times when the Road was run by a Board of Directors, I was elected Treasurer of the W.N.C.R.R. Co. I gave my bond to the Company & to the Company I made my reports.

When a Receiver, as Officer of a court, took charge, he gave his bond to the court and the court looked to him for reports, settlements, etc. I was continued as Treasurer in name, but I gave my bond to the receiver, acted as his agent only, made my reports to him and he settled with the court.

When the commissioners took charge, they gave bond to the State. I was still continued as Treasurer in name, but gave my bond to the Commissioners personally & have acted as their Agent in the management of the finances of the Road. I thought that the State would look to the Commissioners for reports &c. In this view of the case, at the end of the first six months & of the second also, I made a full report to the Commissioners of all matters belonging to my department & showed the receipts, disbursements, expenses and net earnings.

These reports were required of me by the Commissioners for the express purpose to get the facts upon which to base their report to the Governor as required by Act of Assembly.

I made these statements because I was afraid, from your letter, you might think the proper reports had not been made to the Governor through my negligence. I assure you, if I had understood the law to have required me to make the reports &c I should have done so in the time required by law.

I know that when I first made out reports for the Commissioners, Maj Rollins Prest took them to Raleigh with him to make a report to the Governor & I thought for a long time that he had done so.

In like manner, as to paying money into the State Treasury, Concerning myself to be simply an Agent of the Commissioners, I have disbursed the funds of this Road strictly under their directions; considering them responsible to the State. If I am mistaken in anything I have said as to my duties, I beg you to believe I am honestly mistaken, & that I am now willing and anxious to do anything & everything that I can do to effect a settlement of this matter.

Any intimation from you as to what I should do will be gladly received.