NA, ENG 11/10/1862

Engineer Bureau
Richmond, Nov. 10th, 1862
   
Hon. Geo. W. Randolph
Secretary of War
 
Sir,
   I have carefully examined the letter of Edwards Wilkes and Co. contractors for the construction of the Piedmont Rail Road dated today and referred by you to this Bureau for prompt consideration: I have the honor to submit the following

Report

   On examination of a contract entered into the 3d of September last between Edmund Wilkes and Brothers and the Piedmont Rail Road Company it appears that the first named parties contracted to do the work of graduation, masonry, trestle work, furnish cross ties, & lay the track (at certain prices set forth) on the proposed road between Danville, Va. and Greensboro, North Carolina, and to complete the work specified by the first day of May, 1863.
For earth excavation if completed by May 1st 1863 37 cts per cubic {yd?}
"       "      "      "     " Aug. 1st 1863 36 "      "
"      "      "      "      " Oct. 1st 1863 35 "      "
For loose or soft rock excavation   60 "      "
   The other parts of the work to be done at correspondingly high rates. The usual rates in times past for earth excavations on rail roads, was about 15 cents per cubic yard -- 37 cents named in the contract are there fore about 2 1/2 times former rates. 
   In consideration of an increase of force to hasten forward the work to an earlier completion, Edmund Wilkes and Brothers demand an increase of 50 per centum on their originally high prices, making the cost of the earth excavation 55 1/2 cents per cubic yard -- or 3 2/3 times former prices.
   The other conditions proposed by the contractors are that the Government shall do as follows:
1st Furnish 650 laborers, and 100 mules on the portion of the work that is in Virginia
2nd Furnish 1250 laborers and 500 mules on the part of the road within North Carolina
3rd Furnish at Danville and Greensboro: Bacon and corn in such quantities as may be required, also forage on the line of the road. All at Government prices.
4th Furnish "Carts &c" required for working the increase of forces efficiently
5th Furnish the increases of force by the 1st of December, 1862
   The Government having done and performed all these things, the contractors may "be able to carry out your views" with the understanding that should there be less than 20 working days, on the average, in the month, or an epidemic should visit the line, or the war should cause a loss of time, they shall receive such compensation as the Chief Engineer or a Board of Engineers shall decide -- additional compensation I presume. Admitting that an increase of force during the winter months owing to bad weather and other causes, would or might add to the cost of construction I must consider the proposition of Messrs. Edmund Wilkes and Brothers as unreasonable. They call on the Government to be responsible for the supply of the additional hands, animals, carts, implements, provisions and forage -- all at Government prices, leaving but little for the contractor to do but receive 50 per centum on the prices named in the contract.
   At the rates existing a few years past, Rail Road contractors paid as much as $12.00 per month for labor -- on the price of $16.00 per month at only an advance of 33 1/3 per centum. Again, if the provisions, forage, carts, implements &c are furnished at Government prices, the rates will be cheaper -- probably as much cheaper than if furnished by the Rail Road Company as agreed upon in the contract. This saving will probably amount to a large item in favor of the contractors.
   Referring to a Report to you of the 9th inst submitted by Capt. Edwd. T. D. Myers Chief Engineer, and Edmund Wilkes, Contractor, I find they came to the following conclusion -- viz:
   "This provides for half the entire distance with a view to its readiness for receiving the superstructure (cross ties, rails &c) early in February."
   "On the remainder we can manage an addition to the grading force of 500 men."
   It appears from this that no definite time has been fixed for completing the superstructure of half the road; or for finishing the grading of the other half.
   If the emergency be such that the Government ought to step in and ensure the completion of the contract, I would respectfully suggest, that the construction of a part, say, one half of the road, be undertaken by the Government, using the same hands, animals, provisions, forage, carts and implements called for by Messers. Wilkes and Brothers, agreeing with the contractors upon an equitable allowance for the profits they would have made on this part of their contract. In a matter as important to the Nation I presume any contractor will readily agree to fair terms fixing said allowance. By full concert of action, it is hoped the road can be built in one half of the time named in the agreement. As the Chief Engineer of the Piedmont Road is an officer of the Provisional Engineers, the arrangement proposed can be easily made. One, possibly two, assistants can be given to Captain Myers, with whose aid he can direct all parts of the work.
   In order to press forward the road rapidly, it will be necessary to rely on the Commissary Depart. for provisions, and on the Quarter Master Dept. for animals, forage and transportation.
   In return herewith the letter of Messrs. Edmund Wilkes and Co. of this date. Also the joint Report of Captain Myers and Mr. Edmund Wilkes, dated 9th inst.
I am sir, Very Respectfully
Your Obt. Servt.
J. F. Gilmer
Colonel & Chief Engineer Bureau

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