NA, VC 3/9/1863

Assistant Quartermaster General's Office

Richmond, Va. March 9th 1863
 
Col A. C. Myers
Quarter Master General
 
Sir,
   I have the honor to report as follows upon the letter of E. Fontaine Esq President of the Va. Central R. Road Company, asking for an increase of rates of Government transportation both for freight and troops.
   Mr Fontaine seems to misapprehend the spirit of your letter of the __ Jany last in reply to one from him enclosing the proceedings of a convention of the Virginia Rail Roads. You did not express yourself in favor of releasing the Roads from the inadequacy of its rates. On the contrary you de??ly stated it as your opinion that these rates were, generally, amply remunerative. You however, said that "during the progress of the war there have been instances of Rail Roads, that for some or all of the reasons stated in the report of the Committee, have been allowed higher rates. Such instances will doubtless occur in the future. The same equity that has been extended in the past, will be extended in the future." You expressed your willingness to make an exception from the general tariff of any Road "That shall furnish me (you) satisfactory evidence of the inadequacy in its case of those rates."
   The present communication of Mr Fontaine is a formal application for an increase of the rates on his Road. But whilst his application is special and confined to the Va Central Road, the arguments appear to me to be altogether general in their character. While it is only asked that the Central Road be exempted from the Columbia Tariff, the arguments are ??ted against the adequacy of that Tariff generally. If well founded, it would follow that not only the Central Road, but all Roads should be excepted from it -- in other words that the Columbia Tariff should be cancelled. Moreover the application appears to be based upon prospective estimates for the year 1863, which, however candidly and carefully made cannot be altogether relied upon. They will
   Since the former correspondence between yourself and Mr Fontaine it has come to be understood that the duty and the responsibility of making "contracts for transportation with Rail Roads or any of them" appertains to Col Wadley A. A. G. It is within my knowledge that he has acted on applications for an increase of rates, like this, and has decided the question as to whether a particular Road is a side line or a through one. I would, therefore, for the sake of uniformity, respectfully recommend that this application of the Va Central Road be referred to him together with a copy of your former letter to Mr Fontaine.
Very respectfully
Your obt servt
Ch. Maurice Smith
Captain & A Q M

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