Richmond, April 15, 1862
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| Honorable Secretary of War of Confederate States |
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| Sir, |
| The act of the 15th of February last to
provide for the connection of the railroad from Selma, in Alabama, to
Meridian, in Mississippi, authorizes the President to advance to the
president and directors of the Alabama & Mississippi Rivers
Railroad Company, for the purposes stated, the sum of $150,000, upon
such terms and conditions as he may deem best to secure the early
completion of the proposed connection and to secure the repayment of
the money advanced. Understanding it to be the desire of the
Government to cause this connection to be made at the earliest
possible day for military purposes, the undersigned, a member of the
Board of Directors of said company, caused the acting chief engineer
to prepare and furnish proper estimates of the work now to be done,
and from these was of the opinion, in view of the increased and
increasing price of railroad iron, supplies, etc., and the increased
cost which such prompt work would necessarily involve, that a
further advance of $200,000 would enable the company to complete the
proposed connection in time to meet the wishes and probable
exigencies of the Government. The undersigned, however, was
perfectly aware that though the road bed could be thus finished, the
rolling-stock of the company would be entirely inadequate for the
probable requirements of the Government, but supposed that in case
of necessity the Government might transfer to this road the
rolling-stock of other roads not so immediately important, and it
was the intention of the undersigned to have mentioned this sum
($200,000), but by the advice of experienced railroad men he was
induced to suggest an amount that would certainly not only complete
the road bed in the shortest possible time, but also furnish an
ample supply of rolling-stock. The undersigned did not intend by
this application for an increased advance to convey the impression
that the company would be unable to finish the road with the aid of
the $150,000 already authorized. His sole object was to hasten the
work and meet the wishes of the Government at the earliest possible
day. The company holds a large amount of stock notes on persons of
unquestioned solvency, the payment of which is now delayed for want
of a market for cotton; but the Board, with the aid already
authorized, will proceed with all possible diligence to complete
their road, and its president has already, relying on this aid,
taken steps to procure the necessary amount of railroad iron, now
becoming alarmingly scarce in the Confederate States. The
undersigned has deemed it advisable to say this much in explanation
of his former communication, and will now, in behalf of the company
which he represents, submit the following proposition and statement,
viz: That the said sum of $150,000 be loaned to said company for the
term of ten years without interest, with a provision that the
company in its transportation shall always give preference to
freights belonging to the Confederate Government; shall charge for
the same such rates as are customary on railroads in the Confederate
States, and payment therefore shall be entered as a credit on the
obligation of the company. As security for the repayment of the sum
loaned the company offers its bond, secured by a mortgage on its
entire road, including rolling-stock, fixtures, machine-shop,
depots, &c. That the security offered is amply sufficient the
following approximate statement of the condition of the company will
show:
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| From Selma, on the Alabama River, to
Demopolis, on the Tombigbee River, is fifty miles, of which forty-five
miles are in running order, with rolling-stock now sufficient for the
present and ordinary business of the road. The balance of this
distance is already graded and prepared for the superstructure. At
Demopolis it is contemplated to connect temporarily by a steam-boat
with McDowell's Bluff, a distance of about five miles. From McDowell's
Bluff to Reagan, on the Northeast & Southwest Railroad, is about twenty-four miles, of which nearly
one-half is now graded, and the contractors still at work. From this
it will be readily perceived that there has been already expended on
the road more than $1,000,000, to which is to be added as a part of
the assets of the company more than $300,000 of good stock notes,
now unavailable because due by planters whose means of payment are
obstructed by the blockade. Upon the first thirty miles of road
there is a mortgage to secure the payment of bonds of the company to
the amount of $150,000, of which about $125,000 have now been used.
Besides this, there is a mortgage upon the whole road to secure the
repayment to the 2 per cent. fund of probably $150,000 more. Thus it
will be seen that the security offered presents assets reasonably
worth about $1,500,000, encumbered by liabilities amounting to about
$300,000. If required, personal security will be given for the
faithful application of the money and for the completion of the road
as speedily as possible. As this matter detains me from other
important business, I venture to hope that you will give it prompt
attention, and remain,
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| Very respectfully, yours truly |
| James L. Price |
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| P. S. -- It is suggested as a matter of convenience that
the agent of the Government, Mr. Gaines, who has been sent out on
business connected with the road, be instructed to take the bond and
mortgage and have the mortgage recorded and the papers returned to
you, and upon this being done that the company be authorized to
receive the advance. Dispatch is highly important to the company, so
as to enable it to secure the iron partially contracted for.
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| J. L. P. |
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