LVA, RF&P 2/12/1863

{From the minutes of the Directors' Meeting of the Richmond, Fredericksburg & Potomac RR, February 12, 1863}
 
At a meeting of the Board of Directors held Feby 12th 1863
   Present: P. V. Daniel Jr President, Messrs Mumford, Myers, Mills, Haxall & Robinson Directors
   The President stated to the Board that since the last meeting Capt Robinson and himself had had farther conferences with the officers of the Government in relation to the importation of supplies, and submitted the following letter from him to the Secy of War with that officer's endorsement as containing the result of their interview, for the information of the Board.
 
Richd Fred & Potc Rail Road Co
President's Office Richmond Feby 12th 1863
 
Hon James A Seddon
Secretary of War
 
Sir,
   I understand the result of your conversation yesterday with Capt John M Robinson to be this. That the War Department of the Government of the Confederate States, in order to secure the importation of munitions of war, is now engaged through its Agent in Great Britain, in purchasing steam ships, in which those munitions will be imported into a port or ports of the Confederate States; and considering these supplies which are necessary to the maintenance of the Rail roads in these States which propose to import them, as scarcely less essential to the success of our arms, than these munitions of War, if not in some sense entitled to be considered themselves munitions of War, the War Department agrees, that a certain portion of the Cargoes of these Steam ships, to be determined by the War Department or its agent in Great Britain, may consent of these supplies for these Railroads, upon the payment by the Companies owning those Railroads of the tolls or freight charges prevailing among ship owners for similar freights & voyages at the dates of such shipments, or, at the option of these Railroad Companies, upon their assessing and paying for such a portion of the Steamship, her equipment and outfit complete, and of all other expenses of the vessels including (if paid by the War Department also) the wages of her Commander and crew, as the tonnage of freights shipped in that ship and on that voyage, shall be of the whole tonnage of the whole cargo shipped in that ship & on that voyage.
   As it will be necessary to have upon this subject the definite decision and action this afternoon of the Directory of this Company at tomorrow at noon of a Convention of the Railroad Companies interested, may I ask of you the favor, to endorse on this letter (of which a copy can be retained in the Department) your written statement, confirming, or, if necessary, notifying the understanding herein expresses, so that these meetings of the Directory and of the Convention, may have respectively a written definite proposition to act upon. Your prompt reply will greatly oblige
with much respect
Your obt servt
P. V. Daniel Jr Prest
 
Endorsement of the Secretary of War
   The Department can make no contract with the Rail Road Companies, for the shipment from abroad of such needed supplies for their roads as they may buy, for its own arrangements for the p??ment and employment of suitable vessels for running the Blockade and making such shipment are as yet to be contingent and uncertain to justify its coming under any positive engagements. The Department however fully appreciates the importance to the public service that these Railroad supplies should be obtained as early and with as little risk as possible, and gives its assurance of willingness in case its expected arrangements are completed and can command the requisite vessels to allow the supplies of the road to be shipped on its vessels, the Roads ??? taking a share in the venture of ship and cargo for the voyage proportionate to the value of their lading or paying freight at the existing rates on the vessels proposing to run the blockade.
J A Seddon  Secy of War
 
   On motion the resolution of Mr. Myers, which was laid on the table at the last meeting was called up, and after amendments was unanimously adopted as follows:
   Resolved that the President of this Company be authorized to give such authority to this Company's agent for the purchase of supplies in England as will enable him to use such means for transportation as will prove most safe & economical, taking into consideration the number of Companies uniting with this Company whether such means may be best subserved by the purchase of a vessel or of vessels by cooperation with any agent appointed by the Confederate Government for similar purposes, or otherwise.
   The President suggested to the Board that it would be necessary to adopt some plan in reference to remittances for the contemplated purchases. At the suggestion of the Board he drew up and submitted the following resolutions on the subject which all were unanimously adopted.
   Resolved, that for the purpose of making the necessary remittances to Europe for the purchase of the Railroad supplies needed by this Company, the President of this Company is hereby authorized to adopt either of the following means as upon conference with other Railroad Companies and officers of the Government he may deem most expedient.
1st  To send by the agent of the Rail road Companies such an amount of the Bonds of the Confederate States as will suffice when sold at not less than 30 pr cent of their par value to supply the funds needed for the purchase & expenses attaining it, with instructions to such agent, if practicable, to pledge them with some responsible broker in England as a pledge that within a time agreed on between such broker & himself they shall be redeemed in Sterling Exchange funds or be publicly sold by such Broker at the market rates then existing in England.
2nd  To To purchase in some inland town of the Cotton States, most safe from the public enemy, in conjunction with other Rail road Companies cooperating with this & through an agent jointly appointed by them and this, so much Cotton as will probably at the price at which it can probably be sold to a foreign purchaser in a Confederate port, produce a sufficient amount of sterling funds to repay the cost of the purchases of such Companies and the expenses attending it, and to obtain from some responsible Insurance Company full insurance on such Cotton, and to pledge the Policy of such insurance with the foreign purchaser.
3d  To purchase and remit to Europe the Bonds of this Commonwealth, upon which the interest is not suspended by law, to be sold or pledged until redeemed or on failure to redeem to be publicly sold by the party with whom they are pledged a the then existing market rates in England.
4th  Failing to succeed in either of these modes, to purchase the requisite amount of exchange in sterling funds to defray the cost of the Companies purchases and necessary costs attending them.

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