War of the Rebellion: Serial 128 Page 0140 CORRESPONDENCE, ETC.

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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, &c.

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 subsequent advances.

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 the contract.

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 your address.

Very respectfully, yours,


Colonel and Chief of Engineer Bureau.



Secretary of War.


Richmond, Va., October 23, 1862.

Hon. B. H. HILL,

C. S. Senate, La Grange, Ga.:

DEAR SIR: Your letter of October 12 has been received, and I have to thank you for the candor and promptness with which you have advised me of the condition of public affairs in Georgia and Eastern Tennessee. The state of affairs in East Tennessee presents a very difficult question, and one which can be decided only the consideration of many points. With every disposition to conciliate the people of that region, still the pressure upon us by the enemy is such