NA, A&TR 1/1/1863

State of Alabama

 
   Articles of agreement mad and entered into this first day of January in the year of our Lord Eighteen hundred and Sixty-three, by and between the Alabama and Tennessee River Rail Road Company, a body corporate of Said State, of the first part and the Confederate States of America through the duly authorized Agent thereof Captain L{emuel}. P{ratt}. Grant, of the Corps of Engineers of the second part. Whereby it is covenanted and agreed as follows:
   The party of the first part covenant and agree
1st To commence immediately on the approval of this contract by the Secretary of War of the Said Confederate States and prosecute vigorously the work of grading, masonry bridging and delivery of Cross Ties for a railroad between Blue Mountain Said State and the state line in the direction of Rome, Georgia, under the provisions of the act of the Congress of said Confederate States entitled "An act to enable the President of the Confederate States to provide for the means of Military transportation by the construction of a Rail Road between Blue Mountain in the State of Alabama and Rome in the State of Georgia, approved October 1862."
2d To proceed to lay the track of said Rail Road and to complete the same in running order together with the necessary Water Stations, depots and fixtures within the space of time of ten months from the date of the commencement of the delivery of iron rails, chairs & spikes, provided the iron rails, chairs & spikes are furnished by the party of the second part and delivered at Selma in the Said State or at the state line as aforesaid or portions at each of said places and provided also that should delay occur in the course of delivery of the iron rails, chairs and spikes, by which the work of tracklaying shall be retarded, the same shall work an equivalent extension of time in which to complete said rail road.
3d To receive the iron rails, chairs and spikes which may be furnished as aforsaid, as a part of the loan mentioned in said act of the Congress, rated at the following prices -- One hundred and twenty five dollars per ton for iron rails. Twelve and one half cents per pound for wrought iron chairs and spikes and ten cents per pound for cast iron chairs.
4th To execute a Mortgage on the rail road and fixtures, franchise, land, and appurtenances connected with the same, proposed to be constructed between Blue Mountain and the state line as aforesaid to secure the repayment of the sum or sums which may be advanced by the party of the second part, as well as to secure the completion of said rail road according to the true intent and spirit of this contract; giving to the Secretary of War power in said Mortgage to foreclose the same and sell said rail road, fixtures, franchise, lands and appurtenances on failure of said party of the first part to progress with the work according to the spirit of this Contract or on failure to repay the said loan as herein after stipulated.
5th To pay to the party of the second part interest on the amount received at the rate of Eight per cent per annum from the date of receipt; and to repay the principal and interest in instalments of Seventy five thousand Dollars per annum; the first instalment to be paid twelve months after the time stipulated in this Contract for the completion of said rail road.
6th To give to the party of the second part the preference in all transportation over said rail road during the existing war.
7th To give every necessary facility to the Engineer who may be selected by the party of the second part for the inspection of the work.
   In consideration of the foregoing Covenants and in pursuance of the said act of the Congress, The Confederate States of America party of the second part covenants and agrees to loan to the party of the first part Two hundred & twenty thousand dollars to be applied to the complete preparation of the roadway of said rail road, including the delivery of Cross Ties from Blue Mountain to the state line as aforesaid, and should the iron rails, chairs, and spikes be supplied in the manner before mentioned then to loan to said party of the first part the further sum of Forty five thousand dollars to b e applied to tracklaying, depots and fixtures for the full completion of said rail road in running order.
   And said loan will be made in instalments at intervals of time of two months upon the certificate of the inspecting Engineer of said party of the second part of the value or proportion of work done, materials delivered, or in preparation for delivery, and of provisions, forage, tools &c supplied -- and will increase the first instalment beyond the amount certified by the inspecting Engineer at the option of the Secretary of War on satisfactory evidence being adduced by the said inspecting Engineer of active and efficient preparations made by the party of the first part for the vigorous prosecution of the work.
   And the said loan shall be in bonds of the Confederate States of America bearing interest at the rate of eight per cent per annum from the date of delivery.
   This Contract not to be binding on the party of the second part until approved by the Secretary of War.
    In testimony whereof the said party of the first part under authority of its Board of Directors has hereunto caused its corporate seal to be affixed. Attested by its Secretary and the President of the same has subscribed his name officially; and the said Confederate States of America have executed this Contract on their part by the signature of their said agent. 
   Done in quadruplicate in the City of Selma on the day and year before written.
Tho. A. Walker  Prest
of the Ala & Tenn. R. R. R. Co.
 
Confederate States of America
By L. P. Grant  Agent
Capt. Enger Provl Army
 
Attest
A. M. Goodwin
Secretary  {Alabama & Tennessee Rivers RR}

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