| Confederate States of America |
| War Department |
| Engineer Bureau |
| Richmond Va Novb 12th 1862 |
| |
| Capt. R. B Lee |
| Provisional Engineer Corps |
| Anderson C. H. Anderson Dist S. C. |
| |
| Capt., |
| Herewith I enclose an Act of Congress
approved 19th April 1862 authorizing the President "to aid or contact"
with the New Orleans and Texas Rail Road Company, and "the Texas & New
Orleans Rail Road Company" on such conditions as he may think proper to
insure a connecxion between New Iberia in the State of Louisiana and
Houston in the State of Texas, said connexion 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 Arthur, about sixty miles in
length, would facilitate the transportation of military supplies
obtained in Texas & Mexico, viz provisions, sulphur, saltpetre, lead,
arms &c. because from that point the roads eastward and northward pass
over a higher and firmer country, making transportation in common wagons
practicable. With a view to a better understanding of the subject and to
facilitate the construction of the section of the road 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 a 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 can 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 commanders of the southern Military Districts
in Texas and confer fully with {them?} in
prosecuting the duties 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 load of the 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 and your views are concurred in by the commanders of the
southern Military Districts 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,
viz: 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 rates 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
over the road during the war to be reserved to the Government. |
| 5th The right to be reserved to the
Government of inspection 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 arrangements 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 commence at the same
date. |
| 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 of 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 or War. |
| In the p?? of the contract you are
authorized to employ at a reasonable rate of compensation, a lawyer to
insure a proper form and ??? of the conditions named. To save time the
fair copus 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 your examinations, the conclusion at which you may arrive
and your recommendations advised to this Bureau for the information of
the Hon. Secretary of War. |
| Having now completed the service now
entrusted to you, you will repair without delay to Richmond and present
to me in person your report & the contract, if any again upon for the
approval of the War Department.` |
| {One line covered by
post-war tape and not readable} and assigned to the duty now
committed to you: but be dou?? accept his appointment. Mr. Hazlehurst is
a civil Engineer of note at Macon Geo. You will go by that city & get a
package of papers & letters in his hands relating to the Rail Roads
under consideration. |
| Very Respectfully Yours |
| J. F. Gilmer |
| Col of Engrs in Charge of Bureau |