ORN, Series 2, Vol. 1, Page 653

Confederate States of America  
Hdqrs. Dept. No. 1, New Orleans, La, December 16, 1861
 
Hon. J. P. Benjamin
Secretary of War
 
Sir,
   I have the honor to acknowledge the receipt of yours of the 7th instant, inclosing a letter from. Dr. Cartwright to the President, relative to the Mexican Gulf Railroad.
   I am not aware that the Government or the parties who claim to have purchased the road have any intention of using the iron for shipbuilding purposes, nor do I believe that any such purpose exists. Had any plan of that railroad been laid before me, I should have weighed the respective advantages to the Government of using the iron on the road or on the ships and decided accordingly. I am well satisfied that the whole scheme is to make a grand speculation for private purposes, either by selling the iron in this market or by forcing the road upon the Government at an exorbitant price. I have a work at Proctorsville, across the railroad, mounting six 32-pounders and manned by 100 men distant from the city 27 miles, which covers the valuable plantations along the left bank of the river. To reinforce this work rapidly I have constructed a switch from the Pontchartrain {RR} to the Mexican Gulf road at a cost of $1,600, and am putting up telegraph lines between the city and Proctorsville which will enable me to receive early notice, and by using the rolling stock of the Pontchartrain road to send down 4,000 men in four hours {requiring about 50 to 75 cars}. It is this arrangement that I do not wish to be interfered with by what I consider a "rail speculation." The only order I have given in the case is to say that the road shall not be torn up so as to prevent the passage of troops. I have told them they may take up the present rail and put down the T-rail, but they decline. Of one thing I am sure---the Government has no prospective benefit in what the company proposes to do.
   To avoid, however, the exercise of military authority, if possible I sought other means of obtaining the end in view by ordinary process of law. Learning that the State has mortgages upon the road, I consulted with the attorney-general, who is now taking the necessary steps to prevent by an injunction any damages being done to it, so as to preserve it intact for the better security of the claims that the State has upon it. I consider it, therefore, hardly necessary to discuss the propriety of military interference as long as the matter is, or forthwith will be, with the civil authorities, but have merely mentioned the foregoing facts to give you the correct data in the premises.
Respectfully, your obedient servant,
M. Lovell
Major General, Commanding

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