OR, Series 4, Vol. 1, Page 896

Quartermaster-General's Office
Richmond, January 31, 1862
 
The President
 
Sir,
  I have the honor to acknowledge the receipt of a letter addressed to you by Mr. Goodman {Walter Goodman, President, Mississippi Central RR}, which has been referred to me for consideration and remark. The several subjects to which it refers have already received that attention from this department which their importance demanded, and to some extent the suggestions presented by Mr. Goodman have been carried into effect. Contracts have been made with the railroad companies, generally, by which a preference has been secured to all Government freights, both as to time of transit and use of cars. Every possible arrangement has been adopted to secure prompt transportation of public stores, and to this end many of the railroads have been employed to their utmost capacity. Delays and difficulties have occurred in many instances, but no arrangements can be made so complete as to entirely prevent their recurrence. A uniform standard of charges for Government transportation, deemed to be both just and economical, has been agreed upon with many of the leading railroads, and the rates thus established will, it is supposed, meet the concurrence of all the companies. This is equivalent to the prescribed terms of a written contract, and by it hereafter uniformity in the charges for transportation will be secured. I doubt greatly the propriety of appointing Government freight agents and messengers, as proposed by Mr. Goodman. Competent persons to fill such positions cannot readily be procured, nor are they necessary. They would interfere seriously with the management of details, which should be left entirely to the control of trained and experienced railroad employees. They would, moreover, remove from the railroad companies and their agents that direct responsibility to the Government which it is important to preserve. This consideration appears to be decisive, for the most serious evils would result if the obligations now imposed upon the railroad companies were lessened or removed. It is suggested by Mr. Goodman that these agents or messengers should give certificates of the quantity of freight transported, the number of miles traveled, and the amount earned by the road, which should be the only vouchers used in settlements with the companies. It would seem that this object could not be attained, as it would not be practicable for the messengers traveling in charge of the trains to superintend the weighing of freights at way stations unless the trains were delayed until they could inspect and note the shipments. Under the present system the railroad transportation accounts are adjusted upon vouchers signed by officers and agents of the Government, and only actual weights and distances are paid for. All orders for transportation specify the points from and to which freights are carried, and a freight list or bill of lading is sent by the consignor to the consignee. The policy of building cars has been adopted to some extent, but it is deemed more advisable to transfer them to the railroads, as thereby the necessary inspection and repairs are attended to, while if left in the possession of the Government and used upon the various roads no particular company could be made responsible for their being kept in good condition. The importance of encouraging the establishment of rolling-mills cannot be overestimated, and I fully concur in the suggestion that they should receive the fostering protection of the Government whenever the private enterprise of the country seeks to construct them. In what mode or to what extent this protection should be afforded I am not prepared to suggest.
  The mill of Mr. M. A. Cooper {the Etowah Iron Works}, in Western Georgia, has not escaped my attention. Some time since application was made to Mr. Cooper to supply sheet-iron to meet requisitions made on this department for various articles, but he declined because his operations in the manufacture of bar iron and rails were too profitable to justify a change in his present machinery. Nor, judging from his estimate of the profits to be derived from their manufacture, do I think his property could be purchased upon favorable terms. Mr. Goodman conjectures that the cost of erecting an effective rolling-mill would be from $100,000 to $150,000. Mr. Cooper's calculation is that the net profit upon his manufacture of bar iron and rails will be $150,000 during the current year. If therefore the policy of establishing such mills be adopted, other localities should be examined.
  In conclusion, while this department will receive with much satisfaction any suggestions or propositions looking to the adoption of a system which will secure more complete, prompt, and economical transportation of public supplies than is afforded by that now in use, I must be permitted to express the doubt whether any substantial improvement can at present be effected. Mr. Goodman's letter is herewith returned.
I have the honor to be, very respectfully, your obedient servant
A. C. Myers
Acting Quartermaster-General

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