NP, ASCY 3/14/1863

From the Southern Confederacy (Atlanta, Ga.) 
 
March 14, 1863
 
Reply of the Post Master General to the Letter of Major Campbell Wallace
 
Post Office Department
Richmond, March 4, 1863
 
Dear Sir,
   Your letter of the 10th of February ultimo was received by due course of mail, and I have been prevented from answering it sooner by a pressure of business. I can but thank you for the generous and patriotic expression of your views recommending a reduction of the mail pay to railroads to a uniform rate of fifty dollars per mile, during the war, as a means of enabling the Post Office Department to keep up the mail service. At a convention of the officers and representatives of the railroad companies, which was held in Montgomery soon after the organization of our Government, they cheerfully and patriotically met the views of the Department by consenting to a reduction of the rates of mail pay.
   But this consent was coupled with a resolution which requires a considerable increase of expenditure by the Department for the payment of messenger service, which had before that time been paid by the railroad companies. And, on the whole, the reduction of the cost of railroad service had not been as much as was at the time expected.
   As bearing on your proposition, I would mention that at the railroad convention recently held at Augusta, the proceedings of which I have not yet seen, I have been informed a resolution was adopted for the appointment of a committee to urge upon Congress the propriety of increasing the rate of mail pay to railroad companies. If I am correctly informed as to this it would indicate that they would not probably consent to the reduction you so patriotically propose.
   I have for some time past been endeavoring to accommodate the views of the officers of many lines of railroad, I may say of nearly all, by agreeing with them to the arrangement of schedules at a rate of speed of about fifteen miles per hour, instead of the present schedules. This, they represent to me, is made necessary on account of the difficulty of keeping up the motive power and rolling stock of the several roads as well as from the difficulty of getting iron to repair the roads. If this slower rate of speed shall be adopted, I am advised it will be beneficial to the roads by facilitating transportation. And for this and the decreased speed in the transmission of the mails, which is the special advantage derived from conveying them by railroad, they may possibly consent to some reduction of present rate of pay. If our railroads would consent to the rates of mail pay received by those of other countries, it would greatly relieve the Department, and would possibly enable it to pay its own expenses without a further reduction of the mail facilities of the country. And when the current amount of transportation gives them full employment, as at present, and especially if slow schedules be agreed on, so as to favor transportation, and while the messenger service is paid for by the Department, I can see no good reason why they might not agree to a reduction of mail pay.
   A reduction of the railroad pay for transportation of mails to a maximum rate of one hundred dollars per mile would produce a saving to the Department of one hundred and seventy-five thousand three hundred and ten dollars ($175,310). And a reduction to a maximum of fifty dollars per mile would produce a savings of four hundred and eighteen thousand four hundred and ninety-five dollars ($418,495). A reduction of the expenses of the Department by an amount equal to this latter sum, if it can be made, would enable the Department to meet its future liabilities, it is believed, without further additional aid from the Treasury and without the necessity of further reductions of the service.
   While I do not regard it as probable that the railroads would consent to this latter reduction, I should have hopes that they might consent to deductions to a maximum of seventy-five dollars per mile with the twenty-five per cent. allowed for night service when performed, upon the arrangement of such slower schedules as will accommodate their freight and travel. I will call the attention of the committee on Post Offices and Post-roads, of the two houses of Congress to your recommendation, that they may give it such consideration as its importance requires.
   *****
With much respect, your obedient servant
John H. Reagan
Post Master General
 
Campbell Wallace, Esq.
Pres'nt E. T. & Ga. R. R. Co.
Knoxville, Tenn.

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