| Engineer Bureau |
| Richmond, Novb. 1st '62 |
| |
| Captain Geo. H. Hazlehurst |
| Corps of Engineers, Provisional Army, Macon, Geo. |
| |
| Captain, |
| Herewith I enclose an Act of Congress
approved 19th April, 1862 authorizing the President "to aid or
contract with the New Orleans & Texas Rail Road company, and the
Texas & New Orleans Rail Road Company" on such conditions as
he may think proper to insure a connection between New Iberia in the
State of Louisiana and Houston in the State of Texas -- said
connection being for Military purposes. Since the fall of the city of
New Orleans a question has been raised as to the importance of
building the extensions of the two rail roads as contemplated at the
time the act was passed. It is reported to the War Department that the
building of the section of road from the Sabine to Lake Authur --
about sixty miles in length -- would facilitate the transportation of
Military supplies obtained in Texas and Mexico. viz: provisions,
sulphur, Saltpetre, lead, arms, &c. because from that point the
roads eastwards and northward pass over a higher and firmer country
making transportation on common wagons practicable. With a view to a
better understanding of the subject and to facilitate the construction
of the section of roads named, should it be found important to the
public interests the Secretary of War directs that you proceed without
delay to such points in Texas as will enable you to get full
information as to the advantages to result from the extension; the
character of the roads from the proposed eastern terminus; the time
that will be probably required to build the road; the source or
sources from which the necessary rail road iron may be obtained; the
possibility of guarding the road, when built, against attacks of the
enemy operating along the coast and all other information bearing on
the subject. You will forward or present copies of these, your
instructions, to the commander of the Southern Military District in
Texas and confer fully with in prosecuting the duties now assigned to
you, also with the Agents of the two rail road companies interested.
You will embrace in your investigations a careful consideration of any
claim that may be presented by the Texas & New Orleans Rail Road
Co. for aid to meet pecuniary obligations incurred on the faith of
receiving the loan of Confederate Bonds, implied by the approval of
the Act of April 19th, 1862. |
| If the benefits to result from the
proposed extension be such as to make it proper in your opinion to
furnish the Bonds as authorized by law in aid of the construction
needs your views are concurred in by the commander of the Southern
Military District of Texas, you are hereby empowered on behalf of the
Government to propose an agreement with the agents of the rail road
companies interested, embracing the following terms and conditions.
via: |
| 1st. |
That the aid to be furnished by the Government
shall be in the way of a loan, and that the loan shall be in
Bonds of the Confederate States bearing interest at the rate
of per centum per annum. |
| 2nd. |
That a mortgage be given to the Government on
the property of the Rail Road companies receiving the loan to
secure repayment, with interest at the same rate as the Bonds. |
| 3rd. |
The companies to complete the extension in ___
months from date of agreement, and in case of failure the
Secretary of War to have the power to foreclose the mortgage
and order the sale of the road to other parties. |
| 4th. |
The preference in all transportation on the
roads during the war to be reserved to the Government. |
| 5th. |
The right to be secured to the Government of
inspecting the progress of the work, its character, &c. |
| 6th. |
That the Confederate Bonds constituting the loan
be furnished in proportion to the progress of the work; that
is to say: the War Department to have satisfactory evidence
through the inspecting Engineer of proper accomplishments for
a vigorous prosecution of the construction before advancing
any part of the loan, and like evidence before making
subsequent advances. |
| 7th. |
The Bonds to bear interest from the date of
delivery to the agent of the companies, and the interest to be
paid to the Government on the amounts loaned to commenced at
the same dates. |
| 8th. |
The contract to be signed in quadruplicate --
two copies to be forwarded to this Office. |
| 9th. |
The amounts loaned to be refunded in payments of
from $50,000 to $100,000 per annum, beginning at the end of
twelve months after the day named in the contract for the
completion of the road extension. |
| 10th. |
The contract not to be binding on the Government
until approved by the Secretary of War. |
|
|
In the preparation of the contract you are authorized to
employ, at a reasonable rate of compensation, a lawyer to ensure a
proper form and expression of the conditions named. To save time the
four copies of the contract should be completed and duly executed
by the parties -- while you are in the State of Texas -- to be made
binding on the Government when approved by the Secretary of War in
Richmond, Va.
|
| You will prepare a full report embodying
the result of you examinations, the conclusion at which you may arrive
and you recommendations, addressed to this Bureau for the information
of the Hon. Secretary of War. |
| Having completed the service now entrusted
to you, you will repair without delay to Richmond and present to me in
person your Report and the contract, if any be agreed upon, for the
approval of the War Department. |
| Very Respectfully |
| Your obt. Servt. |
| J. F. Gilmer |
| Col. & Chief Engineer Bureau |
| |
| Approved |
| Geo. A. Randolph |
| Secretary of War |
| |
| PS |
| For your information I send herewith copies of letters
from the following gentlemen -- viz: the Hon. Sec. of War, His
Excellency the Govr. of Texas, Maj. Genl. Taylor, Brig. Genl. Hebert,
and Col. D. Boaz |
|