I am taking the liberty of enclosing you herewith copy of letter just written Col. Varner. I am advised and led to believe that he is having some opposition in Wilkes County in his Congressional Campaign, on account of his objecting to the state furnishing the Watauga & Yadkin River R.R. Co convicts. I believe this situation should not exist. Col. Varner is entitled to his opinion and until he can be shown that he is wrong should be admired, rather than censured for taking this stand.

I believe that if the situation relative our road is understood by Col. Varner there will be no further opposition. While I do not think it is up to us to make this explanation; in view of the fact that some of the citizens of Wilkes County are opposed to him on account of this I feel that anything we can do to help him in his campaign, without getting into it directly, should be done.

Relative the financing of our road: The money conditions seem to be easing somewhat and I hope in a short time conditions will change so that we can obtain money on reasonable terms.

The Justice Freight Rate Act did not do us any great amount of good. Judge Reed feels that even though the special Commission appointed to investigate the case, states that it does not effect our road and that the matter will be dropped, he believes the fact that the law does exist and has not been repealed requires, before our bankers will finance us for the completion of our road, that the Commission should render a favorable decision in our particular case, so that in case the law is not repealed and we are found operating two years from now contrary to the law, the officials of the road cannot be held liable. Until this feature is out of the way it is a waste of time to try to do any financing.

I will be south in a short time and expect to be in Raleigh, and will be very glad to call upon you and give you the latest news in connection with our road.