| Engineer Bureau |
| February 17th, 1863 |
| |
| Capt. F. B. Lee |
| Corps of Engineers Provl Army |
| Richmond, Va. |
| |
| Captain, |
| You will proceed to such points in the
State of Texas as may be necessary to confer with the agents of the
New Orleans & Texas, and Texas & New Orleans Rail Road
Companies respecting the advance of funds in aid of said companies
under the Act for the construction of a Rail Road from New Iberia in
the State of Louisiana and Houston in the State of Texas, Approved
19th of April, 1862. |
| It is proposed to advance funds to the New
Orleans & Texas Rail Road Company for the following purposes,
viz. |
| 1st. Construction of 6 miles of road eastward from the
Sabine river, including the bridge over said river. |
| 2nd. For railroad iron, including spikes, chairs,
frogs, switches and switch iron -- purchased in construction account. |
| And to the Texas & New Orleans R.
Rd. Company, for the following, viz. |
| 1st. Amount applied to construction of Road, in
embanking, bridging, cross ties and contingencies, from 1st January to
26th Decemb. 1862. |
| 2nd. The amount requisite to keep up the road-way, if
the condition of the company really require it, on the understanding
that Government transportation may be deducted in repayment, with
adequate additional security for the return of the advance. |
| The amount that may be loaned to
the New Orleans & Texas Rail Road companies is |
$202,000 |
| And to the Texas & New Orleans R. Rd
companies is |
$208,000 |
| Making a total advance of |
$410,000 |
|
| By the terms of the Act authorizing the
loan, it must be in Bonds of the Confederate States and to secure
payment, a mortgage must be taken on the "road and its
appurtenances." |
| If practicable, you will secure a mortgage
upon the roads and their appurtenances jointly, or as consolidated
companies. If this cannot be done for legal or other reasons, you will
take separate mortgages. In either case the mortgage or mortgages must
be submitted to and approved by George Mason, Esquire, Confederate
States District Attorney for Texas, before the Bonds shall be
delivered to the respective companies. The rate of interest to be paid
on the loan must be the same as that born by the Bonds advanced. The
eastern extension of six miles, including the bridge across the
Sabine, must be completed within six months after the date of the
agreement under which the loan shall be made. The preference in all
transportation over the roads, during the war, to be reserved to the
Government, also, of inspecting the progress of the construction and
repairs -- their character, &c. |
| The amount loaned to be refunded in annual
payments of $50,000 each, commencing Eighteen months after the date of
delivery of Bonds to the companies. |
| The contract or agreement, setting forth
the above terms and conditions, should be signed in Quadruplicate by
yourself in behalf of the Government and by the authorized agents of
the Rail Roads, in behalf of the companies. If necessary, you are
authorized to employ a Lawyer, at a reasonable compensation, to ensure
a proper form and expression of the conditions used, also to prepare
the mortgages. The mortgages must be recorded in the proper office of
records. |
| Having completed the duties now assigned
to you, you will return to Richmond, Va. and report in person to the
Chief of this Bureau, bringing with you duplicate copies of the
agreement entered into with the Rd Road Companies, also the mortgages
on the property of the roads. |
| Very Respectfully |
| Your obt. Servt. |
| J. F. Gilmer |
| Colonel & Chf of Engineer Bureau |
| |
| Approved |
| James A. Seddon |
| Secretary of War |
|