| Office Richmond & Danville Railroad
Company |
| Richmond, May 5, 1862 |
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| Resolved, That the
Richmond & Danville Railroad Company will subscribe for 14,900
shares of the stock of the Piedmont Railroad Company, chartered by the
ordinance of the Convention of North Carolina, to enable this Company
to construct the contemplated railroad under the said charter.
Provided, that the Government of the Confederate States of America
lend to this Company the money or bonds appropriated by the Congress
of the said Confederate States for the purpose of building the said
railroad, on the following terms, viz: that the loan so made shall be
in bonds convertible into treasury notes; that the Company shall not
be required to pay interest on the said loan, at least until after the
said railroad shall be completed and in operation; that the sum so
loaned is to be repaid in installments of one hundred thousand dollars
per annum, commencing at the end of one year after the day on which
the said railroad is completed; that the said loan is to be secured by
bonds and mortgage on the work to be constructed, and if required, on
the whole or on so much of the railroad and works of this Company as
may be deemed necessary; that the said Government will advance to this
Company the sum of seventy-five thousand dollars, in part of the said
loan, so as to enable the Company to pay up the first payment required
by the said charger on the subscription to be made to the said stock;
and that the said Government will furnish to this Company the iron
necessary to construct the said railroad at the cost thereof to the
Government, to be taken in part of said loan; this Company binding
itself to apply the money or bonds so loaned and the iron so furnished
to the construction of the said railroad, and to no other purpose
whatever, and to proceed with said construction as rapidly as
may be. |
| Resolved, That the
President of this Company is authorized and required to submit the
foregoing proposition to the proper authorities of the said
Government, and if the same are accepted, that he subscribe on behalf
of this Company for the number of shares, above mentioned, in the
stock of the said Piedmont Railroad Company. |
| Resolved, That if the
said proposition shall not prove acceptable to the Government of the
Confederate States, in whole or in part, that the President of this
Company be authorized to receive proposals from the proper authorities
of the said Government for the purpose of carrying into effect the
object of the foregoing resolutions, and that he report the same to
the Board. |
| Richmond, May 6, 1862 |
| The President reported to the
Board the acceptance of the Government of the Confederate States, to
the proposition made on yesterday, with the following endorsement on
the back of the copy of the same, viz: |
|
War Department, May 6, 1862
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The within proposition is accepted, the War Department
reserving for the Government the preference in all transportation during
the war, and the right to the assistance of the Company in obtaining
iron to lay the track.
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Geo. W. Randolph
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Secretary of War
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The President then, on behalf of the Company, subscribed
for fourteen thousand nine hundred (14,900) shares of the Capital
Stock in the Piedmont Railroad Company.
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Office Richmond & Danville Railroad Company
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Richmond, May 8, 1862
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Whereas, The President of the Richmond & Danville Railroad
Company having communicated to the Board of Directors that the contract with
this Company, to loan this Company one million of dollars in bonds convertible
into treasury notes, cannot be complied with by the authorities of the
Confederate Government, therefore,
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Resolved, That the President be authorized to modify the
contract so as to receive treasury notes to the amount of $74,500 to meet the
5 per cent. on the stock subscribed, and the residue thereof in the bonds
authorized by law. Provided, that the bonds of this Company, to be executed to
the Confederate Government for the payment of the loan, shall not bear
interest until at least eighteen months after the completion of the Piedmont
Railroad, and said road is actually in operation.
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Evening Session
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The President submitted the following modification of the
contract, which was adopted by the Board:
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War Department, May 8, 1862
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The contract bearing date May 6, 1862, between the Richmond &
Danville Railroad Company and the War Department is modified in the following
particulars: The loan shall be in bonds of the Confederate States in the usual
form, and shall not bear interest until eighteen months after the road is
completed and in operation. The rate of interest paid by the Company shall be
the same with that borne by the bonds.
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Geo. W. Randolph
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Secretary of War
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