NA, MC 3/3/1863

Office Mississippi Central Railroad Company

Grenada, March 3d, 1863
 
Genl A. C. Myers Q. M. Genl.
Richmond
 
Dear Sir,
   Assistant Quarter Master Maj L. Mims the Auditing Officer of the accounts of this Company against the Government of the Confederate States declines allowing the charges we have made for the transportation of the troops and Gov't freight in consequence of an increase of the rates charged prior to 1st November last.
   Permit me to state here, that I deny the right of the Government or of Governmental officers to determine the rate of our compensation for Government transportation in the absence of an agreement by us. You will recall that at a Convention of Rail road Companies held in Montgomery early in the year 1861 it was determined that Confederate troops & Gov't freights at half local rates should be transported.
   Then the local rates of Passengers was generally four cents per mile & freights from 25c to 40c per hundred pounds per hundred miles, then too oil could be purchased at from 80c to $1.00 per gallon for which we have since paid the Government $8.00 per gallon for an inferior article. Iron and steel have advanced in price from 300% to 500% for each every article we consume in the repairs and operations of our road. Our General expenses have increased more than 300%. Bacon was then worth 10c per pound, now we pay 50c Lard 10c, now 50c and all other things in proportion.
   Subsequent to the Montgomery convention another was called at Chattanooga by Col Ashe then acting for the Gov't as Supt of Government transportation. At that Convention it was determined that 20c per 100 pounds per 100 miles or less should be charged on Government freights. Col Ashe being present and assenting on the part of the Government to these rates. They have been thus charged by and allowed to this Company as far as its accounts have been audited and paid. 
   In October last I addressed a letter to the then Secy of War informing him that in consequence of the enormous increases of our expenditures, originating mainly in the cost of labor, materials and supplies, I could not continue to transport Government troops & freights at the price assented to in 1861 and that after that period self preservation would require me to increase the rates. To that letter I have no reply.
   I will remark here that many road in the Confederate States increased their local rates after the Montgomery Convention in order to increase the rates against the Gov't. This road did not follow their example.
   In July 1862 our local rates for transportation of freights and passengers was largely increased amid increasing expenditures, in order if possible to keep our road and its equipments in repair, but no corresponding increase of rates was made against the Government.
   After the appointment of Col W M Wadley to the office of Military Superintendent of Government Transportation he called a convention of all the Rail roads in the Confederacy at Augusta Geo on the 15th Dec last where forty of the roads were reported to be represented, this company was not represented in that Convention and is not bound by its acts, although willing to conform to its determinations as far as practicable and consistent with self preservation and its desire to meet the requirements of the Government for transportation. At the Augusta Convention called by Col Wadley in which he represented the Government it was determined as I am informed that the future charges made by the rail roads therein represented, as against the Gov't should be 3c per mile for passengers & 30c per hundred pounds per hundred miles or less on freight but that all roads in part within the Federal lines should be permitted to establish such rates of Tariff as they thought proper. This road being of the last named class has only ninety out of two hundred & thirty five miles within the Confederate lines. Soon after the Convention referred to I had a consultation with the President of the Mobile & Ohio Road, whose road was similarly situated to this, for the purpose of agreeing upon uniform rates to be charged the Government, never dreaming the Auditing officer would reject accounts based upon the assent of Col Wadley the accredited agent of the Government. It was determined by Judge Brown and myself that we would from the 1st of Dec. last charge 3c per mile on Government Passengers the price agreed on in the Augusta Convention and that we would increase our rates of freight from 30c per hundred pounds per hundred miles or less the price agreed upon at Augusta, to 35c but upon the Class of freight that the convention determined to charge 60c per 100 pounds we would charge the same, and my accounts have been rendered in accordance with this understanding, and have been rejected by the Auditing officer, Maj L. Mims, by what authority I know not, nor is it material, it having been done. 
   The rates of increase of Local Tariff on this road has been greater than on Government freights and if we still ??? to this ??? of the Montgomery Convention our changes against the Government would be larger than those ordered in our accounts. As already stated I deny the right of the Confederate Gov't or any of its officers to determine what we shall or shall not charge for transportation, while the Company would sacrifice as much as any other, and has far more than most of the roads in the Confederacy to promote the general interest, I am bound to guard and protect the private interest committed to my charge as far as I am capable of doing so. Our equipments have been taken in good order, by military orders from our road, some of it retained for use in other roads for more than six months, and all of it when returned has been in a dilapidated and unsafe condition, and a considerable amount of it returned worthless for want of care in its use, and this has been done without compensation to this Company. More than a half a million of dollars of this Company's property has been destroyed by Confederate troops, our equipment has been worn out or nearly so, in the public service, and we are unable to repair them for the want of the necessary materials to do so, and our road track is rapidly depreciating in value and scarcity from the same or similar causes. For these and other reasons that could be given I must insist upon the advancement of the rates charged on the accounts rejected by Maj Mims and that they continue to be allowed until such time as it may be found necessary or expedient to change them. If our revenue is not equal to our present expenses and the future cost of repairs it will be far better for this Company to discontinue the operation of this road and thus make an effort to preserve its property for future use.
   It has been our wish and intention to do every and all things in our power and by all means we could command to aid and assist the Government in the prosecution of the existing war. This we will continue to do, but the tax incident to such efforts must be borne by the Government and not by the Company alone.
   I trust you will direct my accounts to be allowed at the rates charged, and that I receive a specific reply.
Yours Respectfully
W Goodman Prest
 
{on reverse of letter}
Q. M. Genls office
Richd March 20 63
Forward to Colo. Wadley at Augusta Geo. Mr Goodwin having been advised that the Augusta rates have never been accepted, and states this office, which now is only charged with the payment of transportation accounts, would continue to pay, at the old established rates, until it is advised officially through Colonel Wadley of a change. May not a Company, in the absence of the acceptance of the Augusta Rates modify the present rates by a notice duly served on the Government?
A. C. Myers
Q. M. Genl.

Home