Confederate States of America, War Department
| Richmond, Va., May 1, 1862 |
| |
| Jacob W. Payne, Esq. |
| New Orleans, La. |
| |
| Sir, |
| The Congress of the Confederate States
has appropriated the sum of $1,500,000 to aid the completion of the
New Orleans & Texas and Texas & New Orleans Railroads. This
money the Government proposes to advance as it may become necessary,
taking a mortgage on the works and property of the roads for the
return of the money and personal security for its faithful
application. For this purpose we need an agent to advise us of the
sufficiency of the sureties and the condition and progress of the
work, and we request that you will act for us in that capacity. You
may employ an engineer whenever you may need professional advice;
and, if you accept the position, we beg that you will keep the
Government advised through this Department of all matters necessary
to be known in regard to the condition and progress of the work. I
inclose herewith a copy of the act of appropriation and of a letter
of A. M. Gentry, esq., president of the road. |
| Respectfully, your obedient servant |
| Geo. W. Randolph |
| Secretary of War |
| |
| [Inclosure] |
| Confederates States of America, War Department |
| Richmond, May 1, 1862 |
| |
| Hon. Secretary of War |
| Confederate States of America |
| |
| Sir: The Texas & New Orleans Railroad (in
Texas) extends from Houston to the Sabine River, a distance of 106
miles. The rails are laid the whole distance, but a portion were
laid temporarily for military transportation and needs finishing,
and the building and the completion of some bridges now under way;
also, the connecting this company's track in Houston with the rails
of the four other roads terminating at that point, as described by
General P. O. Hebert. To accomplish this it will require, under the
estimates, $250,000 in bonds. The company will secure the repayment
of this sum by issuing and executing to the Confederate States
Government at once its income mortgage bonds for same amount,
pledging 10 per cent. of its gross earnings as a sinking fund to
liquidate the whole. |
| The New Orleans & Texas Railroad extends
from the Sabine River to New Iberia, on Bayou Teche, La., is 117
miles in length, and all in the State of Louisiana. Under the
appropriation and estimates $1,250,000 in bonds will be required. To
secure this sum to the Government the company will execute a first
mortgage on its road, road bed, equipment, furniture, and all its
property necessary for and incident to the maintenance of its road
and the transaction of its business. This road is entirely free from
any incumbrance, and the mortgage and security can be executed in
such manner as may be required or deemed best by the Department or
such agent as they may select for the purpose. I would beg leave to
suggest that the Department appoint a special agent or attorney in
Texas or Louisiana, or both, who may be on the spot and attend to
executing and receiving the security on behalf of the Government.
This could be done at once, and enable the companies to progress at
once with their work. The disbursement in Louisiana could be made by
a special agent and upon the estimates made by the engineers and
president of the company, and verified by the agent of the
Government for work done or material furnished in construction. This
would simplify the business and facilitate the construction of the
work. As an agent to obtain the mortgage, etc., in Louisiana, I
would suggest the name of Mr. L. Dupre, M. C., from the district in
Louisiana where the road is located; in Texas, either Hon. Horace
Cone, of Houston, or F. H. Merriman, esq., of Galveston. |
| With the hope that you will find it convenient to
dispatch my business at once |
| I am, very respectfully your obedient servant |
| A. M. Gentry |
| President New Orleans & Texas and Texas & New
Orleans Railroad Companies |
|