I sent you a long night letter in answer to your two wires.

The position here is this,

During the last twenty four hours conditions have changed very greatly and it now seems certain that this whole deal will be closed successfully.

I have been at several conferences and instead of a line from Knoxville to Greenville and Rutherfordton this proposition has developed into a great trunk line from St. Louis to the coast.

The men who are now taking hold are abundantly able to put the deal through and they will do si if no complications arise, and the only complication that we know of is the possibility of our State taking away the convicts.

I am not able to give you definite and positive assurance that the road will certainly be built, but I can give you the positive assurance that it will not be built if the convicts are now taken away.

Owing to the illness of Mr. Dupont we have been unable to complete the organization of a solvent Construction Co., we were only able to see Dupont yesterday for the first time & then only on his yacht where he is under his physicians control.

I am frank to say that there can not be any financing done under the existing conditions of the present Construction Company, but I am also sure that a new and solvent company will be formed within the next two weeks, possibly a few days longer, that will be able to satisfy the Councill of State & any others, that it is able and willing and ready to build the road.

Now the State is already interested in this to about $27,000.00 and if these convicts are now taken away the State will certainly lose that amount in addition to losing the development of a large portion of its territory and will also destroy its best chance to satisfactorily solve & lower the freight & passenger rates in the State. There is also a moral side to the question, namely, the men who have contributed over $300,000 in cash to this enterprise were largely induced to spend this money on the representation that the State was interested in the road & would evidence that interest by letting the road have certain convicts, said intention of the State being evidenced by the various acts of the Legislature & also by the action of the Council of State in letting us have 25 convicts, now it would not look well here in New York or abroad to now have the State wirhdraw fromits contract and seeminly say "Gentlemen, we have now got you firmly hooked, now you will have to go on & we will use these same convicts & the same tactics to get some other enterprise started in the State".

I am absolutely familiar with the conditions & I believe if we have a little more patience that the road will be built & the State will be paid in full for the convict labor.

And you can assure the Council of State that ample tools & explosives will be immediately furnished the convicts if they are left alone, this will be done as soon as you inform us of what is done.

It is impossible for me to leave here now to be with you & I think I am really an important witness.