I have yours of the 17th advising that Mr. R. R. Clark,¹ Director of the State Hospital at Morganton insists that we have charged that institution with a sum in excess of their balance as of Dec. 1st, 1914, and suggesting a meeting with you and the Board of Internal Improvements.

Replying I have to advise that the Superintendent of this hospital reported thirteen hundred and fifty nine patients on November 30th, 1914. Upon investigation we learned that this number included those on parole. We ascertained definitely the exact number of patients actually in daily attendance. We then took the report of the Superintendent of this institution and the report of the Legislative Committee consisting of Dr. Kent and others and estimated the per capita cost of each inmate at $164.00 and multiplied this by the total number of average daily inmates and gave this institution $200,000.00 for 1915 and $205,000.00 for 1916 for maintenance. In addition we gave this institution $60,000.00 for installation of a water supply. The number of inmates was given us by Senator A. D. Ward who had wired for exact information. The per capita cost was taken from the report of the Supt. of the institution and the Legislative Committee.

We charged this institution with $76,302.49. This amount was the amount given me by the State Treas., Mr. Lacy, as the exact balance to the credit of this institution in his office on Dec. 1st, 1914. This amount does not correspond with the amount to the credit of this institution in bank at Morganton for the balance in bank on Dec. 1st, 1914, according to the report of the Legislative Committee was $50437.76. This occurs by reason of the fact that the November vouchers were paid by the bank at Morganton but had not reached Mr. Lacy's office. In other words the same thing happens every year and the institution can not be prejudiced thereby.

I suggest that you see Mr. Lacy and see if the figures which I have given are correct. I am sure that they are. However, if I can be of service in any way, I shall be happy to do so and can attend a meeting on pretty much any date that you may indicate. If a meeting is desired I suggest that you fix the date of the meeting and advise. I shall endeavor to arrage my affairs accordingly and attend.

With high personal regards, I am,