Richmond, April 10, 1862
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| Hon. G. W. Randolph |
| Secretary of War, Confederate States |
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| Sir, |
| It is understood that it is the earnest desire
of the Government to cause the railroad connection between Selma,
Ala., and Meridian, Miss., to be completed at the earliest time
possible, so that the Government may have the use of the road for the
transportation of troops, munitions of war, provisions, etc. The
Provisional Congress passed an act authorizing an advance of $150,000
to the Alabama & Mississippi Rivers Railroad Company to
complete the connection, and as a member of the board of directors
of that company it has been made my duty to submit the security
required and to receive the amount proposed to be advanced. It is
proper, however, that I should make known to you the fact that the
sum of $150,000 will not be sufficient to complete the road and
place upon it the necessary rolling-stock to answer the expectations
and probable wants of the Government. When the application was made
to the Provisional Government for an advance of money for the
completion of this most important line of road it was hoped that the
amount authorized to be advanced, when added to that which the
company reasonably expected to derive from stock notes held by it,
would be sufficient to finish the road for use and furnish it to
some extent with necessary rolling-stock. But owing to the
continuance of the blockade of our ports, whereby our cotton crop
has been withheld from market and sale, the company has been unable
to make collections, and the continued rise in railroad iron and
rolling-stock has shown that the sum proposed to be advanced when
expended will leave the work still in an unfinished state. It is the
opinion of experienced engineers and other persons well acquainted
with the cost of building and equipping railroads that it will
require, as the work now stands and under existing circumstances,
the sum of $500,000 to finish and equip the entire road so as to
place it at the earliest possible moment in such condition as will
enable it to fulfill the demands of the Government. The company
chartered to build this road has expended already in its
construction and in the purchase of stock and materials very nearly
or quite $1,000,000. It has some forty-five miles of its road
completed, the grading of most of the remainder under contract, and
about $300,000 of stock notes on hand, but now unavailable. With the
aid of the Government the road could be entirely finished in a few
months, and when finished, in addition to the facilities afforded
for the transportation of troops and munitions of war, the route of
the road would open to the Alabama and Mississippi Rivers the most
productive grain and provision country of the South. I will venture
to make to you this suggestion: Amount necessary to finish and
furnish the road, $500,000; amount already authorized, $150,000;
balance $350,000, say one-half in Treasury notes and one-half in
Government bonds. If the Government will consent to make the
additional advance in Treasury notes and bonds the repayment of the
amount will be secured by lien on the entire road and its
rolling-stock, fixtures, etc., and the company will stipulate to
place the road subject to the control of the Government when
required for war purposes, and to receive on account of any freight
or services rendered by the road to the Government a credit on the
debt incurred by the proposed advance till the whole amount be
extinguished. The company will also consent, if required, to secure
the advance by mortgage on the road, etc., with power of sale, so
that payment can be enforced before the bonds of the Government
shall mature. The undersigned submits these suggestions in order
that some plan may be devised to accomplish at the earliest possible
day the wishes of the Government in regard to the work in question,
and is prepared to make any statement in explanation that may be
required.
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| Very respectfully, your obedient servant |
| James L. Price |
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