|Richmond, Va., October 22, 1862
|Capt. L. P. Grant
|Corps of Engineers, Provisional Army, C. S., Atlanta,
| Herewith I inclose a copy of an act
to enable the President of the Confederate States to provide the
means of military transportation by the construction of a railroad
between Blue Mountain, in the State of Alabama, and Rome, in the
State of Georgia.
| By the terms of this act the President is
empowered to enter into contracts for a speedy completion of the
proposed link of railroad "with the several railroad companies
whose charters extend over said line."
| To accomplish the object contemplated the sum
of $1,122,480.92 in the bonds of the Confederate States has been
appropriated by the Congress, and it is proposed by the War
Department to make a loan of this amount to a railroad company on
such terms as will insure a prompt execution of the work and the
repayment to the Government of the money advanced.
| The duty of making such contract is assigned
to you, subject to the approval of the Secretary of War, and in the
following conditions, to wit:
| First. That the loan made by the Government to
the contracting railroad company shall be in bonds of the
Confederate States of America, bearing 8 per centum interest per
| Second. That a mortgage be given to the
Government on the proposed link of railroad and its appurtenances
for the payment of the money loaned, with interest at 8 per centum
| Third. The company to complete the link of
railroad in six to ten months from date of contract, and in case of
failure the Secretary of War to have the power to foreclose the
mortgage and order the sale of the road to other parties.
| Fourth. The War Department reserving to the
Government the preference in all transportation over the road during
the existing war.
| Fifth. That the amount loaned be refunded in
installments of from $50,000 to $100,000 per annum, beginning at the
end of twelve months after the day named in the contract for the
completion of the road.
| Sixth. The right be reserved to the Government
of having the work on the road inspected from time to time to
determine its character, progress, etc.
| Seventh. That the Confederate bonds,
constituting the loan to the company, be furnished in proportion to
the progress of the work--that is, the War Department must have
satisfactory evidence through the inspecting engineer of proper
arrangements for a vigorous prosecution of the construction before
advancing any portion of the loan, and like evidence before making
| Eighth. The bonds to bear interest from the
date of delivery to the company, and the interest (to be paid to the
Government on the amounts loaned) to commence at the same dates.
| Ninth. The contract to be signed in
quadruplicate, one copy for the company, one for the inspecting
engineer, one for the files of the War Department, and one for the
auditing officer of the Confederate Treasury.
| Tenth. The Government not to be bound by the
contract until approved by the Secretary of War, to be so stated in
| You are authorized to employ on reasonable
terms a lawyer to aid you in drawing up the contract when the terms
have been agreed upon between the company and yourself. As there
will probably be competition among the several railroad companies
for the contract proposed, you will consider well the ability of the
respective competitors to comply with the obligations they propose
to incur. You will not be limited to the most favorable terms
offered unless the party or parties have undoubted ability to
execute the work in the time named.
| Make, however, the best terms you can, subject
to the above considerations as regards time of construction and
payment of installments.
| You will please to enter at once upon the duty
assigned you, and keep this office informed of your proceedings and
|Very respectfully, yours
|J. F. Gilmer
|Colonel and Chief of Bureau
|Geo. W. Randolph
|Secretary of War