Report of the Postmaster General

REPGllT OF THE

POSTMASTER GENERAL,

POST OFFICE DEPARTMENT,
Richmond, Va., Nov. 27tli, ISGl.

Sir;

I have the honor to submit the following statement of tli.
condition of the business of the Post Office Department.

On the 29th day of April last, I had the honor of sub-
mitting to you a report of the condition and progress of
organization of the Post Office Department, and-of'^'juesent-
ing a plan for the organization of its sevtrail Bureaiis. and
of the office of Auditor of the Treasury for the Post Office
Department, and of suggesting such changes and modifica-
tions in the laws relating to the postal service as our new
condition required, and of asking for authority to assume
the entire control of the postal service in the Confederate
States.

Under the provisions of the first section of the act of
Congress, of May 9th, 1861, '*To amend An Act, vesting
certain powers in the Postmaster General, approved March
1 .5th, 186 1 ," the requisite authority Avas given to him to issue
his proclamation, fixftig a day on which he would assume the
control of the postal service. Pursuant to that authority
the following proclamation was issued on the 13th day o*^f
May, fixing the 1st day of June, for the commencement o^
the service, to wit :

Whereas', By the provisions of an act, approved Marcli
loth, 18G1, aii(i amended by the first section of an Act,
approved May 9th, 1861, the Postmaster General " is au-
thorized, on ai\d after a day to be named by him for that
purpose, to take the entire charge and direction of the
postal service in the Confederate States," and all conversance
of mails, within their limits, from and after such day, except
by authority of tlic Postmaster General, is thereby
prohibited :

Now, therefore, I, John II. Keacan, Postmaster General
of the Confederate States of America, do issue this my proc-
lamation, notifying all Postmasters, Contractors and Special
and Route Agents, in the service of the Post Office Depart-
ment and engaged in the transmission and delivery of the
mails, or otherAvise in any manner connected with the ser-
vice, within the limits of the Confederate States of America,
that on and after the 1st day of June next, I shall assume
the entire control and direction of the postal service therein :
And I hereby direct all Postmasters, Route Agents and
Special Agents, within these States, and now acting under
tlic authority and direction of the Postmaster General of
the United States, to continue in the discharge of their res-
pective duties, under the authority vested in me by the
Congress of the Confederate States, in strict conformity with
such existing laws and regulations as are not inconsistent
Avith the laws and constitution of the Confederate States of
America;^ and such further instructions as may, hereafter, be
issued by my direction : And the said Postmasters, Route
Ao-ents and Special Agents are also required to forward to
this Department, without delay, their names, Avith the names
of the ofiices of which they are Postmasters, (giving the
State and County), to be directed to the '' Chief of Appoint-
ment Bureau, Post Office Department, Montgomery, Ala-
bama," in order that ncAV commissions may be issued under
the authority of this Government; and all Postmasters are
hereby required to render to the . Post Office Department at
Washington, D. C, their final accounts and their vouchers
for postal receipts and expenditures, up to the 31st day of
this month, taking care to forward, Vitli said accounts, all
postao-e stamps and stamped envelopes, remaining on hand,
belono-ing to the Post Office Department of tJie United
. States, in order that they may receive the proper credits
therefor, in the adjustment of their accounts , and they are
i'rther required to retain in their possession, to meet the

3^

ordiers of the Postmaster General of tiie United States, fer-
tile payment of mail service, within the Confederate States,
all revenue which shall have accrued from the postal service
prior to the said 1st day of June next.

All contractors, mail messengers and special contractors
for conveying the mails within the Confederate States, under
existing contracts with the Government of the United States,
are hereby autliorized to continue to perform such service
under my direction, from and after the day last above named,
subject to such modifications and changes as may be found
necessary, under the poAvers vested in the Postmaster Gen-
eral by the terms of said contracts and the provisions of the
second section of an Act approved May 9th, 1861, conform-
able thereto. And the said contractors, special contractors
and mail messengers are required to forward, without delay,
the number of their route or routes, the nature of the ser-
vice thereon, the schedules of arrivals and departures, the
names of the offices supplied and the amount of annual com-
pensation for present service, together with their address,
directed to the " Chief of the Contract Bureau, Post Office
Department, Montgomery, Alabama."

Until a postal treaty sliall be made with tlie Government
of the United States for the exchange of mails between that
Government and the Government of this Confederacy, Post-
masters will not be authorized to collect '' United States
postage on mail matter sent to, or received from those States ;
and until supplies of postage stamps and stamped envelopes
are procured for the prepayment of postage within the Con-
federate States," all postages must be paid in money, under
the provisions of the first section of an Act approved }Jarch
1st, 18G1.

(liven under my liand and the seal of the Post OfSce De-
/^^^ partment of the Confederate States of America,

< SEAL i at ^lontgomery, Alabama, the 13th day of May,

< ^^^ ^ in the year 1861.

JOHN IT. REAGAN,

Postmaster General.

I also append a copy of a proclamation, dated 3d day of
July, 1861, similar to the above, which relates to the State
of Tennessee, and vdiich is marked exhibit A.

The first day of June was adopted in the proclamation as
being the earliest period of time at which it was suppose^

sufficient notice could be given to postmasters, contractors
and others engaged in the service, of the change; so as to
•secure uniformity in their official action.

It may be proper to state, in this connection, that, subse-
quent to the issuing of the above proclamation, the Post-
master General of the United States issued his proclamation
and sent orders to the contractors discontinuing the postal
service in the Confederate States, under the authority of that
Government, from the 1st of June, 1861 , that being the date
on which our Government took charge of that branch of the
public service.

At the time of submitting my former report, there were
but seven States in the Confederate States. The books
necessary for conducting the business of the Department for
these States, were then completed. Subsequently the States
of Virginia, North Carolina, Arkansas and Tennessee were
added to the Confederate States, and the additional books
for these States, were prepared in time to proceed, w^ithout
interruption to the service, though they embraced about the
same number of Post Offices and contracts that were em-
braced in the other seven States.

The progress of the organization of the Department, and
putting it into successful operation, was delayed several
weeks by the removal of the scat of Government and the
delay in preparing a suitable building in this city.

RECEIPTS AND EXPENDITURES.

The total cost of the mail service in the eleven
States, which now compose the Confederate States, for
the fiscal year, ending June 30th, 1860, under the Go-
vernment of the United States, was four million, two hun-
dred and ninety-six thousand, two hundi'cd and forty-six
dollars and seventy-eight cents, ($4,296,246 78). The
total receipts from the postal service for the same year were
one million, five hundred and seventeen thousand, five hun-
dred and forty dollars and fifty-five cents, ($1,517,540 55).
The excess of expenditures over. receipts, for the same time,
was two million, seven hundred and seventy-eight thousand,
seven hundred and six dollars and twenty-three cents,
($3,778,706 23).

I herewith submit a tabular exhibit C marked (B) giving
in detail, the receipts and expenditures for that year.

The report of the Auditor of the Treasury for the Post
Office Department, of the receipts and expenditures for the
fractional quarter, of one month, ending the 30th, of June
hist, (the returns for the subsequent quarter, ending Sep-
tember 30th not being sufficiently complete to enable him to
report for that quarter,) sliow a total of expenditure of two
hundred thousand, nine hundred and thirty-seven dollars
and ninety-seven cents, (§200,937 97), and a total of re-
ceipts of ninety-two thousand, three hundred and eighty-
seven dollars and sixty-seven cents, ($92,3B7 67) ; leaving
an excess of expenditures over receipts of one hundred and
eight thousand, five hundred and fifty-three dollars and
thirty cents, ($108,553 30).

These figures, for the month of June, are made up of so
meagre and imperfect material, as shown by the report of
the Auditor, on account of the absence of returns from a
portion of the Postmasters, and from the fact that the service
of many contractors has not yet been recognized and remains
unpaid, for reasons which will appear in subsequent portions
of this report, as to give no reliable data for determining,
or estimating the receipts and expenditures of the Depart-
ment for the remainder of the current fiscal year.

Subsequent portions of this report, together with the re-
port of the Auditor, Avill develop the causes which have
placed it out of his power to make a more perfect exhibit of
the receipts and expenditures for that month.

By an Act of Congress "relative to Telegraph lines in
the Confederate States," approved the 11th of May last, the
President was authorized, during the existing war, to take
such control of the Telegraph lines of the Confederate
States, and of the offices connected therewith, as will enable
him effectually to supervise the communications passing
throuiidi the same, to the end that a knowledf2:e of our mili-
tar}^ operations shall not be improperly communicated, or
dispatches sent, calculated to injure the cause of the Con-
federate States, or give aid and comfort to the enemy, and
to appoint telegraph operators, build telegraph lines, when,
necessary for the prosecution of the war, &c.

The execution of this law was confided, by the President,
to the Postmaster General. And, in an '-Act to provide for
certain deficiencies in the appropriations for the Post Office
Department for the year ending February 18th, 1862," the
sum of thirty thousand dollars was appropriated to carry into
effect the provisions of the above named act of May 11th..

6

It is sliown by the report of the Auditor, that the sum of
fifteen thousand one liundred and thirty-six dollars and
seventy-seven cents, ($15,136 77) of said appropriation has
been expended, leaving an unexpended balance of fourteen
thousand eight hundred and sixty-three dollars and thirty-
three cents ($14,863 33.)

Eip;ht lines cf teleii-rai)h have been built of the a^-Li-reirate
length of two liundred and seventeen miles, and supplied
with batteries, at an aggregate cost of four thousand three
hundred and sixty-five dollars and thirty -two cents,
($4,365 32.) Ten and a half miles of insulated copper
wire, with batteries, sounders, kc, and three vcliicles, with
reels for extending and taking up the wire, have been made
and sent to the army, for field operations, at a cost of four
.thousand seven hundred and sixty-three dollars and eighty-
six cents (4,763 86).

Twenty telegraph operators and watchmen have been
employed in operating, repairing and taking care of these
lines, at a cost of one thousand six hundred and ninety-six
dollars and twent3^-three cents, ($1,696 23), of which sum
one thousand five hundred and thirteen dollars and seventy
cents ($1,513 70) has been paid.

A contract has been made with the " Texas Telegraph
Compan}^" by which an advance of fifteen thousand dollars
is to be made to that company, for building and operating a
line of telegraph and sending Government dispatches from
New Orleans, Louisiana, to Houston, Texas, a distance of
three hundred and eighty miles ; and four thousand three hun-
dred and thirteen dollars and fifty cents ($4,313 50) has
already been paid over to the Company, under that contract.
This line is to be completed by the tenth of December next.

A contract has been entered into with the " Arkansas
State Telegraph Company," by which an advance of eight
thousand dollars is to be made to that Company, for building
and operating a line of telegraph and conveying Govern-
ment dispatches between Little llock and Fort Smith, Ar-
kansas, a distance of one hundred and ninety miles.

Estimates will be submitted for an additional appropria-
tion for telegraph purposes.

By an act of Congress, approved the 30th of August last,
the Postmaster General is charged with the duty of collect-
ing the outstanding balances in the hands of late and present
postmasters, which had not been paid over to the Post Office
Department of the United States prior to the first day of

7

June last. He is also charged by said act Avitli the duty of
iiscertaining the amounts " due the persons who are citizens
of the Confederate States of America, and who may have
rendered postal serAice in any of the States of this Confede-
racy, under contracts or appointments made by the United
States Government before the Confederate States Govern-
ment took charge of such service."

In obedience to the requirements of said ret, on the 18th
da}' of September last, I issued a proclamation, of which
the following is ;i copy :

'' Whereas, by the provisions of the third section of an
tict of Congress, approved August 30th, 1861, entitled "an
act to collect for distribution, the moneys remaining in the
several post offices of the Confederate States, at the time the
postal service was taken in charge by said Government, it is
made the duty of the Postmaster General to make procla-
mation that all persons who are citizens of the Confederate
States of America, and who may have rendered postal ser-
vice in any of the States of this Confederacy, under con-
tracts or appointments made by the United States Govern-
ment before the Confederate States Government took charge
of such service, shall present their claims to his Depart-
ment, verified and established according to such rules as he
shall prescribe, by a time therein to be set forth not less than
six months, and requiring the cbiimant to state, under oath,
how much has been paid and the date of such payments, on
account of the contract or appointment under which said
•claim occurred and what fund or provision has been set apart
or made for the further payment of tJie whole or any por-
tion of the balance of such claim, by the Government of the
United States, or of any of the States; and they shall also state,
•on oath, wdiether they performed fully the service accord-
ing to their contracts or appointments during the time for
which they claim pay, and, if not, what partial service they
did perform, and what deductions have been made from their
pay, so far as they know, on account of any failure or par-
tial failure to perform such service.

Now, therefore, I, John H. Reagan, Postmaster General
of the Confederate States of America, do issue this, my pro-
clamation, requiring all persons having claims for postal ser-
vice, under the foregoing provisions of the 3rd section of the
above named act, to present said claims to the Auditor of the
Treasury for the Post Office Department for examination, on
or before, the 13th day of March, 1862, in order that I may

8

make a report to Congress of the amount thereof, as required
bj law.

Blank forms, for presenting and verifying the claims will
be furnished on application to the Auditor of the Treasury
for the Post Office Department.

And I hereby require all persons who have heretofore
collected moneys as Postmasters, in the States now compo-
sing the Confederate States, and which they had not paid
over at the time the Confederate States took charge of the
postal service, to make out, under oath, and send to the Au-
ditor of the Treasury for the Post Office Department on, or
before the 13th day of October next, a general or ledger ac-
count, with the United States, for the service of the Post
Office Department, up to the time the control of the postal
service was assumed by the Confederate States, in accord-
ance with the general regulations of the Post Office Depart-
ment, issued May loth, 1859, page 106, exhibiting the
balances in the possession of such postmasters.

Given under my hand and seal of the Post Office Depart-
ment of the Confederate States of America, at Rich-
mond, Va., the 18th day of September, in the year
1861.

JOHN H. REAGAN

Fost master General.

I also gave to the proper accounting officer of the Depart-
ment, the Auditor of the Treasur}^ for the Post Office De-
partment, the proper forms and instructions for the collection
of said outstanding balances and for the verification and
establishment of said claims against the fund to be collected.
And, as shown by his report, he is proceeding in the dis-
charge of that duty.

It will be seen by reference to the report of the Auditor
that he asks for additional clerical force. As the adjust-
ment of the accounts of the Post Office Department, and the
prompt payment of contractors engaged in conveying the
mails, which is essential to the success of the service and to
the maintenance of the credit of the Department, depends on
the sufficiency of the clerical force of the Auditor's office, I
feel called on to submit some suggestions in behalf of its
increase.

When, on the 29th of April last, I submitted a plan for
the organization of the Auditor's office, and suggested the
necessity of a force of thirty clerks, for the performance of

the duties of that- office, it will be remembered that there
were but seven States in our Government, and that there
were, at that time, but four thousand one hundred and sixty-
one postmasters and one thousand, three hundred and thirty-
four contractors whose accounts were to be audited. The
accounts of each of these postmasters and contractors are
required to be audited quarterly, making an aggregate of
twenty- one thousand nine hundred and eighty accounts to
be audited annually.

Now there are eleven States and eight thousand four hun-
dred and eleven postmasters, and two thousand five hundred
and seventy-nine contractors, whose accounts are to be
audited, making forty-three thousand nine hundred and
sixty accounts to be audited annually.

Under the act of August 30th, 1831, above referred to,
very heavy additional labors are devolved on the Auditor in
the collection of out-standing balances and in the ascertain-
ment of amounts due to contractors and others, which will
involve the necessity of auditing some ten thousand addi-
tional accounts, besides a very extensive and troublesome
correspondence, and all to be performed ])y the 13th day of
March next.

In addition to this, he is required to audit the accounts
which may be made under the act of May 11th, in relation
to telegraph lines, &c.

From these facts it will be seen that the business of that
office is now fully double what it Avas when the present
clerical force was allowed by Congress. And a very con-
siderable increase of that force is indispensable to its suc-
cessful management.

It is proper for me to say that the whole number of clerks
authorized by Congress for that office has only recently been
appointed, and that the business of the Postoffice Depart-
ment has been delayed for the vrant of this force.

The report of the Auditor is hereto annexed marked ex-
hibit C, and your attention is respectfully called to the
statements and recommendations it contains.

CONTRACT BUREAU.

There are in the Confederate States 2,579 post-roads es-
tablished by law. Of this number 372 were not let to con-
tract by the United States for reasons shown by the official
reports of the United States Post Office Department, which
were the extravagance of the bids and failure of bidders to

J

10

execute contracts, leaving 2,207 post-roads under contract
on tlie 1st of June, ISGl. Of this number 41o have been
aban<loned bj the contractors, and no response has been re-
ceived from contractors on 519 of the remaining routes,
notwithstanding the urgent efforts made by proclamation of
the Postmaster General, and letters from this bureau to ob-
tain such information as v» ould enable the Department to
know whetlier tlie old contractors were still performing ser-
vice, or were willing to continue the service, under the
Confederate Government, and execute new contracts for its
faithful performance.

On 376 routes additional information is required by the
Department from contractors and postmasters, to enable it
to prepare new contracts for execution. The greater num-
ber of these routes appear, by the information already re-
ceived, to have been either transferred by the parties to
Avhom the contracts were originally awarded, to persons un-
known to the Department, save by the fact that they claim
to be the contractors, or the routes have been materially
changed.

In these cases the original evidence of assio-nmcnt and
orders making changes are required by tiie Department to

on 68, routes has been discontinued b}^ the Department as
unnecessary, and 1 1 steamship routes have been discon-
tinued, by reason of the blockade, making a total of 79
routes on which the service has been discontinued. The
amount saved to the Department annually b}^ these discon-
tinminces is $412,783 97.

Tlie service on 74 routes has l)een curtailed, and the an-
nual expenses thereof reduced $219,206 71, including a
reduction of $115,000 on so much of the overland route
from San Antonio, Texas, to San Diego, California, as lies
between San Antonio and El Paso, Texas ; making a total
annual saving of $631,990 68.

Contracts have been prepared, in duplicate, and sent in
letters of instruction to postmasters for execution, by the
contractors, on 1,372 routes. Of this number 833 have
been returned properly executed and recorded in this De-
partment and filed in the Auditor's office. It is believed
that the residue will be properly executed in a short time.

A tabular statement, exhibiting in detail the foregoing
information, is hereto annexed, marked exhibit D.

It appears, by the foregoing statement, that upon a large

11

number of rout js contracts have not been obtained by the
Department, notwithstanding the most diligent efforts have
been made to secure their execution.

Among the many difficulties Avhich tlie Department has
encountered in its efforts to secure efficient postal service,
the following most prominent causes may be enumerated,
viz : In conseijuence of the failure of the Congress of the
United States to make the usual appropriations for the pos-
tal service for the year ending June 3i)th, 1860, and for the
deficiency in the appropriations and revenues of the preced-
ing year, many contractors were unpaid for a period of more
than six months, and had completely exhausted their credit
for obtaining supplies necessary for their stock and in pro-
curing coaches and drivers, and were compelled either to
abandon their routes or perform imperfect and partial ser-
vice thereon. During the period which intervened between
the secession of the several States and the assumption by
the Confederate States Government of its postal affairs, the
-entire service became demoralized and partially broken up,
lis contractors found no certain provision made for the pay-
ment of their services during that period ; and there was,
to a great extent, an absence of a sense of responsibility in
the performance 'of the duties of both contractors and post-
masters, as thc}^ did not recognize the authority of the
United States Government, and the Confederate Government
had no control of the service prior to the first of June.

After the issue of my proclamation proposing to continue
•all contractors in the service of the Confederate Govern-
ment, many of them seemed to be anxious to ]3e regarded as
contractors, without executing new contracts with the Con-
federate Government, reserving to themselves the right to
abandon the service at their pleasure, but demanding pay,
and, in numerous instances, increased pay for the service
performed.

Others claimed the right to perform inferior service instead
of the higher grade of service which they had contracted
with the United States Government to perform, and demand-
ed the pay due for the higher grade of service. The travel
over many of the stage routes was greatly interfered with
by the condition of the countr}^, and these routes ceased to
be profitable, and many contractors availed themselves of
the opportunity presented, by the fact that without exeoiit-
ing new contracts they were free from liability, and aban-
doned their routes entirely ; and as these routes generally

n

constituted trunk lines, ^vliich supplied the inferior routes
throughout tlie country with their mail matter, of course
great and Avide-spread embarrassment was produced and con-
tinued until new service could be procured, by advertising
or by special contracts. In some cases advertisements for
proposals have met with no response, or, if responded to, it
was by bids so extravagant and unreasonable as to preclude
their acceptance. In numerous instances contractors, in-
fluenced by a spirit of patriotic devotion to the common
cause connected themselves with the army (although by law
exempt from military service, where tliey discharged their
duties in j^erson,) and left the performance of their service
as carriers of the mails in the hands of careless or incom-
petent agents, and, even if the service is continued, great
delay is experienced in obtaining contracts to ensure its
faithful performance, by reason of their absence.

In numerous instances the Department has not been ap-
prized of the abandonment of routes, until long after it had
occurred, and then not by its proper agents, but by some
citizen or newspaper communicating the information to the
Department ; and when investigation has been had, it has
frequently been found that the contractors and postmasters
were in the army.

In some cases of abandonment of service, the postmaster
and citizens have obtained temporary service by the patriot-
ic use of their private means, without notice to the Depart-
ment, and the service, not being subject to its control, is ir-
regular and imperfect.

But the failures and delays in the receipt of letters and
newspapers are not always justly chargeable to delinquencies
of the Department and its agents. It is tlie practice of the
most extensive newspaper offices, in the large cities, not
only to direct their packages to the offices of delivery, but
also to bag them in pouches supplied by the Department,
and label the bags to the several route agents upon the dif-
ferent railroads.

A report recently made to the Department by two of its
special agents who had been directed to visit several of the
most important newspaper offices and obtain the consent of
the editors to examine and revise their " mailing books,"
states that these books were very imperfect and in conse-
quence thereof sacks of newspapers were frequently sent to
a route agent on one line of railroad which should have been
sent to another agent on a road traversing an entirely dif-

13

ferent section of country, but connecting at some remote
point ; thus producing great delay and irregularit}^ in their
delivery. Route agents have frequently reported to the De-
partment that the papers in these sacks are, in numerous in-
stances, so illegibly directed that it is impossible to assort
and deliver them, and in others they are entirely without
direction.

In regard to letters many of them fail to reach their des-
tination in consequence of misdirection or illegible and
careless direction ; and a vast number of letters, addressed
to persons in the army, are not delivered because the writers
thereof fail to state, in the direction, the name of the com-
pany and regiment to which the party addressed belongs ;
and, in the various and rapid changes of companies and
regiments from one point to another, there being nothing in
the superscription to aid the postmaster in determining to
what post office the letters should be forwarded, he is obliged
to retain them the usual period and then send them to the
**dcad letter" office.

Other prolific sources of mail irregulaiuty are presented
in connection with the

RAILROxVD SERVICE.

In view of the necessity of securing a reduction of the
cost of the postal service, and in view of the fact that tjie
transportation of the mails, on the railroads alone, for the
last year, cost the sum of $1,022,437, whilst the whole re-
ceipts from the postal service were but $1,517,540 55^ in
April last, I called a convention of the railroad Presidents,
to meet at the city of Montgomery, for the purpose of seeing
what reduction in the cost of this service could be made.

Most of the railroad companies in the then limits of the
Confederate States, and some of those in Tennessee and
North Carolina, not then in the Confederacy, were repre-
sented in that convention. The convention agreed to a class-
ification of the railroads into three classes, and that the
maximum rate of compensation for those of the first class
should be one hundred and fifty dollars per mile, that of the
second class one hundred dollars per mile, and that of the
third class fifty dollars per mile ; with twenty-five per cent,
to be added when one half of the service should be performed
in the night. And the convention adopted a resolution de-
clining, under future contracts, to deliver the mails at the
^post offices.

14

The adoption of the fore<ioing resolution has devolved on
the Popartment much trouhle and expense ^vhich has here-
tofore been borne b}^ the railroad contractors, by increasing
the number of contractors through ^vhosc hands the mails
are to pass, and dividing the responsibility for their safe
delivery^ by the addition of a number of mail messengers,
under separate contracts for each railroad. And the addi-
tional expense of the messenger service counterbalances, in
a great degree, the redi^ction of the rates of mail pay allowed
to the railroads under the recent act of Congress.

The Congress, in May, passed an act establishing the
classification and rate of compensation of railroads as agreed
on by the convention (The maximum rate of compensa-
tion to railroads before this time was $300 per mile per
annum.) It devolved upon the Postmaster General to deter-
mine the class to which each railroad should be assigned
nnder the rules of classification adopted by the Railroad
Convention and the Congress, and to assign the appropriate
compensation to each ^vithin the maximum limit of its cb^ss,
and to enter into contracts with the several companies for
the performance of the service. The railroads have been
classified, the rate of compensation assigned them, and con-
tracts sent out to the several companies for execution.

There are ninety-one railroads and branch roads in the
Confexlerate States ; of this number, fifteen only have en-
tered into contracts. Many of the companies have waived
the proposal to contract, for the present, on one or another
ground. Many of them decline to accept the classification,
and compensation assigned to their roads, and it is manifest
that many of them intend, if they can, to avoid liability and
the legitimate control of the Department, by refusing to
enter into contracts, while, at the same time, they signify a
willingness to perform the service, but under some protest,
and generally that they must have higher pay.

In order to meet and overcome the objection to entering
into contracts with tlie Department, 1 have directed that no
payments shall be made to the companies refusing to con-
tract, for any time after the end of the month of June, until
they enter into contracts, and I shall continue to act on this
determination. And if it be found that such companies
persist in refusing to contract, I shall, after all reasonable
and proper efforts have been exhausted, withhold the mails
from their control and contract for carrying them in the
next best manner which may be found available. The law

15

forbids payment until contrac*:s arc made. The Department
is held responsible to the public judgment for the rc^szularity
of the mails, and for their speedy and prompt delivery.
Companies who refuse to contract, do so, it is believed, for
the purpose of keeping it out of the power of the Depart-
ment to control their schedules of arrivals and departures,
and their running time. And they retain in their hands
the power to control or defeat proper schedules of service
botli on their roads and others connected Avith them.

To tolerate such a course, is to invite perpetual confusion,
misconnections, delays and failures of the mails, and to
place it in the power of a single company to injure the pub-
lic and all other companies whose interests depend, in any
degree, on its aciion. When they are offered a reasonable
compensation and refuse to accept it and to contract, as we
have no legal means of compelling them to a just, liberal and
patriotic course, I see no remedy but to refuse to deliver the
mails to them and let an injured public find the means, if it
can, of compelling them to a reasonable course of conduct.
It is proper in this connection to say that, even at the re-
duced rate of compensation allowed to the railroads, of this
country under the recent act of Congress, they receive a high-
er rate of compensation than the railroads of any other country
for similar service, except the railroads of the United States.
And tliat Government has, for years past, remonstrated
against the extravagance of those rates, and. it is reasonable
to i^'fer that nothing but the great influence of so many and
Biicl' powerful monopolies has prevented this wholesome and
necessary reform. Their usefulness and importance in the
conveyance of the mails, as in matters of commerce, travel,
and the operations of the army, are fully recognized and
appjeciated by this Department ; and the patriotic and pub-
lic spirited conduct of a number of the companies in these-
times of trial and danger is gratefully acknowledged; but it
cannot be permitted that oJier companies shall disregard all
other interests than their own and make use of their im-
portant franchises, granted by the several States for the
public good, for the injur}^ of others and the public, espe-
cially in times like these, without being exposed, at least, to^
public reprobation.

The railroad service was designed to be daily, and it was
hoped, with proper schedules and speed, this would answer
the public wants. But the Department has encountered
innumerable difficulties in trying to get proper schelules

16

adopted, and lias found it as difficult to get tlicm conformed
to, after being adopted, as to get them adopted in the first
instance.

In the meantime, the railroads have been necessarily,
much occupied in transporting soldiers, and supplies, and
munitions of war, which has materially interfered with the
regularity of the mails. And the War Department and
army officers have frequently directed military schedules to
be run by the roads, in conflict with the schedules of the
Department.

These things, with the ordinary causes of delay and loss
of connections, such as running off the track, breaking
of bridges, &c., &c., have rendered the mails so irregular,
as to make it an accident, noAV, instead of the rule, to have
regular connections between any distant and important
points.

The Department has been visited with much censure on
account of these irregularities, notwithstanding it has done
everything in its power to avoid them, and is, in no just
sense, responsible for them. And the Companies have been
pretty generally notified that the Department will do all it
can by way of fines and deductions for failures, in order to
compel regularity in the service.

The failure of the railroad companies to enter, more gen-
erally, into contracts, places it out of the power of the De-
partment, at this time, to form any reliable estimate of the
reduction of the current cost of the railroad service.

Immediately on the receipt of dispatches conveying the
intelligence of the destruction of the bridges on the line of
the East Tennessee and Virginia Railroad and the Georgia
State Road, two special agents of the Department were dis-
patched by the Western and Southern routes, to the scenes
of disaster, for the purpose of expediting the transit of the
mails and of giving them proper direction, in the event
of one route proving to be more fixvorable to their transmis-
sion than the other. These agents have reported to the
Department that the bridges cannot be rebuilt and repaired
so as to insure no delay in the transportation of the mails,
passengers and munitions of war and supi^lies for the army,
before the latter part of December, unless the Confederate
Government gives some aid to the railroad companies.

The present delay in the transmission of the mails, be-
tween points West of those bridges and this city, occasioned
by the destruction of the bridges, is twenty-four hours.

17

Another fruitful cause of complaint against the Depart-
ment in regard to the delay of mail matter, in its transit
beyond the limits of a State, and frequently within its
limits, is the neglect of postmasters to observe the regula-
tions of the Department in relation to mailing dh'ect to all
points within the State in which the mailing office is located,
and to all points in other States, the locality of which is
known to the mailing office. Instead of complying with
these regulations, it is believed that the majority of post-
masters make up mail packages in bulk and mail them to the
nearest distributing offices, to be there assorted andremailed ;
thus producing delay and expense to the Department, as the
postmaster at a *' Distributing Office" receives twelve and
one-half {\2l) per cent, commission on the postage upon
all matter distributed.

Distributing offices are established for the purpose of col-
lecting and receiving the mails both in large and separare
packages from various points for particular regions of coun-
try, and the distributing them to the several places to which
they are addressed. " '-They are landmarks to the distant
offices to guide the course of their mails to remote points,
receiving them as they are made up at the mailing office and
remailing them with a new post-bill and new entries in the
accounts of 'mails received' and 'mails sent' to their res-
pective destinations." This is their legitimate function, but
the carelessness and indiiference of postmasters and their
clerks, throw upon these offices a vast amount of mail matter
(and consequent increase of labor) which ought, in justice
to the public and the Department, to be mailed direct. This
is especially the case at the present time, when large bodies
of troops are frequently stationed in the vicinity of offices,
which have heretofore been of but little importance ; the
office at once springs into one of great labor and responsi-
bility, if the postmaster discharges his duty, in mailing the
letters intrusted to his care ; but recent investigations,
under the direction of the Department, have established the
fact that, in every instance, the postmasters in the vicinity
of camps, mail their letters 171 hulk, to the nearest distribut
ing office, thereby causing a detention of generally 24 hours
in tlic transit of the letters. Unfortunately for the credit
of the postal service, the evils indicated arc not confined to
the smaller offices in the Confederate States, but are also
found in the ''Distributing Offices." I have recently in-
structed intelligent and efficient agents of the Department,
2

18

•wliosc long experience in the postal service has made them
familiar with the vast net work of post-roads in the Con-
federate States, to visit the several distributing offices therein
and examine and revise their distribution tables and to in-
crease the number of offices to which they should invariably
mail direct. These agents have commenced their labors, and
from reports received from them, in the progress thereof, I
find that there have been many and great abuses in the dis-
tribution system, to the correction of which the most earnest
and diligent efforts of the Department will be directed.

APPOINTMENT BUREAU.

The whole number of post offices in the Confederate

States on the 1st of June 1861, was 8,411

Of this number there have been discontinued since

that date 183

Leaving in operation 8,228

Num1)er established since the 1st of June 72

Whole number of post offices now in operation 8,300

Number of post offices of which the names and sites

were changed 47

Number of postmasters who have been appointed

since the 1st of June 6,261

Number of postmasters commissioned by this Depart-
ment since that date , 4, 184

Whole number of resignations during the same

period 050

Of which number 459 were resignations of appointments
conferred by this Department, and the residue 491 were
resignations of appointments held under the Govern-
ment of the United States. The number of postmasters
subject to appointment by the President, by and Avith the
advice and consent of Congress, is seventy, (70), of which
number sixty-seven (67) have been appointed, confirmed and
commissioned, their bonds having been properly executed
and filed in the Department. The number of route agents
in service, on the railroads and steamboats of the Confeder-
ate States, on the first day of June, was one hundred and
twenty-three, (123), of whom one hundred and ten (110)
have been appointed by this Department, and five (5) have
been removed. The reappointment of the remaining thir-

19

teen (13) is suspended for various causes. Seven perma-
nent and one temporary special agents have been appointed,
and full instructions in relation to their duties, together with
the new postal laws, passed by the Confederate Congress,.
have been prepared and issued to them and to postmasters.

A contract was made in June last for the printing of post
office blanks, and paper for the same, upon the terms pre-
scribed by the Act of Congress, approved 27th February,
1861, and, up to the present time, the contractors have de-
livered to the Department seven hundred and sixty-one (761)
reams of printed blanks.

This quantity has enabled the Department to supply two
thousand five hundred and sixty-one (2,561) post offices with
blanks of all the several kinds used ; sixteen hundred and
fifty-six (1,656) post offices with all kinds, except post bills,
and four hundred and seventeen (417) have been supplied
with accounts current and mails received and sent. The
whole number of orders for blanks, filled by this Bureau
was four thousand, six hundred and fifty-four, (4,654.) The
number of orders for blanks, which have not been furnished,
in consequence of the inability of the contractor to obtain
paper and have the printing done in time to meet the wants
of the Department, is six hundred and forty-six, (646).

A contract was also made in May last, for furnisliing Manil-
la wrapping paper, upon very favorable terms to the Depart-
ment, and the number of reams distributed to post offices,
is eight hundred and eighty-six, (886). Forty-nine (49)
orders for marking and rating stamps have been filled, under
contract, and seven hundred and fifty-seven (757) pounds of
cotton twine have been furnished to post offices. Applica-
tions have been made for '•' letter balances," but the De-
partment has not been able to procure them, as they are not
manufactured South of Boston, Mass. Tabular statements
exhibiting the operations of this Bureau, by States, in
detail, are subjoined, marked exhibits E and F.

Notwithstanding the prompt and energetic efforts of this
Bureau, by the issue of proclamations and urgent letters,,
requiring information to be furnished to the Department,
there has been great delay in the receipt of the responses
from postmasters, which are necessary to enable the Depart-
ment to reappoint them, or to appoint others in their stead;
and the inaccuracy in the execution of the bonds of post-
masters, has delayed the issue of commissions to many of
those who have been appointed.

20

FINANCE BUREAU.

The books of tliis Bureau exliibit the fact, that the post-
masters, who are required by the Department to deposit
quarterly, or oftener, the revenues of their offices, have de-
posited in the Treasury and its branches, since the first of
June, 1861, the sum of seventy-five thousand, six hundred

and five doHars, and seventy cents $ 75,605 70

The amount of grants from the Treasury, in
aid of the revenues of the Department was
l)y the Act, approved March 16, 1861... 320,060 36
And by the Act approved 29th August 500,000 00

Total of deposits and grants $805,666 06

Since the 27th July, 337 warrants have been
issued upon the Treasury, in payment of

the postal service, amounting to $225,434 96

Leaving undrawn and subject to warrants, in

payment of postal service $670,231 10

675 drafts have been issued upon a class of post
offices styled ^' draft offices," in payment
of the postal service, for sums amounting

to $ 40,288 36

The quarterly returns of postmasters are rendered to this
Bureau and are there opened, the ''dead letters" and post-
bills separated from the other portions of the account, the
balance as shown by the adjustment of the postmasters care-
fully recorded in alphabetical order, and the account is then
delivered to the Auditor for adjustment. The number of
dead letters received and opened, up to this date, is 88,682.
The number of drop letters, 8,512. The number of letters
held for postage, 7,818. 967 dead letters contained in
money, $5,751 80, and 1811 contained drafts, bills of ex-
change, notes and other valuable papers, amounting to
$l,!;i38,643 57.

A large amount of the foregoing belongs to persons not
residents of the Confederate States, and will be placed in the
hands of the proper judicial officers, to be disposed of under
the Sequestration Act.

The foreign letters, except those for the French Govern-
ment and the United States, have been unopened. In com-
pliance with the request of the French Consul, I have had
the letters from France opened, and those which contained
money and valuable papers delivered to him.

21

The Eno'lish letters have been delivered to the En owlish
Consul.

Six hundred and ninety-four dead letters, containing
money to the amount of $4,593 30, have been returned to
the writers thereof. Fifty-seven letters, containing $352 05,
have been sent to the offices at Avhich they were mailed to be
delivered to the proper persons by the postmasters, and have
been again returned to the Department unclaimed. One
hundred and fifty-two letters are not yet sent out for delivery
to their writers. They contain $441 45. Sixty-four letters,
containing $360 belong to non-residents of the Confederate
States.

The first delivery of postage stamps by the contractors
was made on the 1 5th October last, and since that date only
1,430,700 stamps have been received, all of which have been
issued by this Bureau to post offices near which large bodies
of troops have been situated, with a view to their special
accommodation.

POSTAGE STAMPS.

The difficulties which have been encountered by the De-
partment in its endeavors to procure postage stamps and'
stamped envelopes, producing great 'delays in procuring
them in such quantities as to meet the demands of the
public, have caused much impatience to be manifested on
that account, which induces me to state, at some length, the
various efforts made by the Department to procure them, as
well for the information of Congress as for the vindication
of the Department against charges of neglect of duty in that
respect.

The manifest advantage of having stamps and stamped
envelopes for the payment of postage has been from the first
fully realized by the Department, and immediately after my
appointment, and before the Department was organized,
correspondence was commenced with such parties as were
known to be able to manufacture them, for the purpose of
procuiing them at the earliest day possible. Propositions
were submitted early in March last, from parties not residing
in the Confederate States, to supply them, and the Depart-
ment was led to believe they might be obtained b^ the time
it could be organized and prepared to take control of the
service. But the political changes then going on so rapidly,
and the increasing probabilities of hostilities between the
ncAV and the old Governments, soon rendered the fulfillment

22

'of the first proposition to fiirnisli stamps and stamped en-
'.velopes impossible.

On the 16th of March, a proposition Avas submitted by a
gentleman having the means and capacity for manufacturing
them, to establish a house in the city of Montgomery for that
purpose and for the purpose of doing any other engraving,
lithographing and printing which might be required by the
Government. Assurances were given him that he should have
the contract for furnishing stamps and stamped envelopes, and
at his request, and to facilitate the early manufacture of them,
he was furnished by the Department, with designs for the vari-
ous denominations of stamps, in order that he might com-
plete the necessary engravings by the time his presses and
other materials could be prepared. He left that city, as he
said, for the purpose of carrying into effect that enterprise,
and nothing was heard from him afterwards.

On the 27th of March the Department advertised for
proposals for furnishing stamps and stamped envelopes, in
newspapers in the following cities, to wit : Montgomery,
New Orleans, Charleston, Baltimore, Philadelphia, New
York, Savannah, Columbus, Richmond, Memphis, and Lou-
isville. No proposals in response to this advertisement were
received from any establishment in the then Confederate
States. The only proposals made in answer to this adver-
tisement were one from Richmond and one from Baltimore,
proposing to furnish lithographed stamps. The proposition
from Baltimore was regarded as most favorable, both on ac-
count of the style of the work proposed to be done and the
terms on which the supplies were proposed to be furnished.
But the collision between the citizens of that city and the
Federal troops, on the 20th of April, and consequent sus-
pension of communication with that city, prevented further
negotiations on the subject.

A skillful engraver, not a citizen of the Confederate States,
visited Montgomery early in May, for the purpose of enter-
ing into a contract to furnish stamps and stam})ed envelopes,
to be executed in the highest style of art. When there, it
became manifest that the condition of affairs between the
United States and our Government would interrupt the de-
livery of these articles from the place at which he proposed
to manufacture them. He then entered into an agreement
to make the stamps in the Confederate States, subject to the
contingency of his being prevented from introducing the
.necessary machinery by hostilities between the two Govern-

23

ments. In June, tlie Department received notice from him
that it would be out of his power to introduce the machinery
and fulfill his agreement.

In July, a confidential agent was employed by the De-
partment to procure the making of the required steel dies
and plates for postage stamps, beyond our territory, and to
furnish them to the Department as soon as they could be
prepared, and also, if found practicable, to have the stamps
made and furnished ready for use

After receiving some encouragement, and after the work
of making steel dies had been commenced, circumstances
rendered the discontinuance of the work by the manufiictu^
rer necessary. And our agent then made an effort, at an-
other point, to procure lithographed stamps of a superior
style, and after some delay it became necessary to abandon
that effort to supply the Department. This brought us to
September. And in the meantime an extensive correspond-
ence was kept up by the Department, and has been steadily
persevered in up to this time, with persons in various cities
in the Confederate States, and indeed with every person who
was represented to the Department as an engraver, who
might execute the work desired. Urged by the wants of the
public, the Department was induced, as a temporary expe-
dient, to make arrangements with a lithographic establish-
ment in this city for the manufiicture of lithographed stamps.
Unexpected delay, however, occurred in the preparation of
them ; and after the completion of the plates, the supplies
furnished to the Department were so insufficient to meet the
demand for them and the prices charged so exorbitant, as
compared with the cost of the superior steel-plate impres-
sions in use in the United States and other governments,
that a special agent was dispatched on the 27th October to
Charleston, S. C, and Savannah, Ga., for the purpose of as-
certaining the practicability of having stamps printed there
on more favorable terms, and in quantities equal to the
public demand. This agent returned to the Department,
November 4th, and reported that the engravers and litho-
graphers of those cities would submit estimates to the De-
partment so soon as they could ascertain the cost of machi-
nery and paper. I have just received a letter from Charles.-
ton submitting a proposal for furnishing stamps, but stating
that it would require at least ninety days for the preparation
of the necessary machinery and plates.

This engraver proposes to furnish the stamps gummed,

24

but not perforated, at a cost of one dollar per thousand, the
paper to be furnished by the Department, whereas the
United States Government paid but eighteen cents per
thousand stamps, gummed, perforated, and put up in tin and
paper boxes and envelopes, without extra charge for paper,
and boxes, and envelopes.

The engraver, in Savannah, under date of 21st Novem-
ber, states that it will require sixty days to prepare the plates
for printing each denomination, and the delivery of 400,1)00
stamps, and that with his present force he can only furnish
80,000 stamps daily. The estimated number require<l for
daily use is about 260,000. In the meantime, on the first
day of October, a confidential agent was provided with am-
ple means and dispatched to Europe to procure the manu-
facture of steel dies and plates for printing stamps of the
several denominations provided by law, and for procuring
for use, as soon as practicable, fifteen millions of stamps,
and to forward the dies, plates and stamps to this city. The
small supplies now being received from the contractors in
this city only serve to increase the public discontent, as
they are insufficient to meet the demands of even the prin-
cipal cities.

It is a fact well established by the experience of other
governments, and of Bankers generally, that impressions
taken from skilfully prepared steel dies and plates, are the
only safeguard against counterfeiting, and the Department
has been very reluctant to adopt any other character of
postage stamp.

The Department has received several propositions from
persons professing a knowledge of the art of engraving and
preparing stamps, but correspondence and investigation have
shown that they had neither the required skill and know-
ledge for this purpose, nor tlie means of furnishing the
stamps, and Avere ignorant of the requirements for the pre-
paration of them. When prepared and supplied as they
should be, to all post offices, they wil^. represent the entire
revenues of the Department.

There is a popular delusion, resting on the minds of
many, that almost any character of engraving will answer
for postage stamps, and in support of this opinion, refer-
ence is frequently made to the fact that postmasters of dif-
ferent cities and towns have procured stamps for their
offices. These are made upon wood, or stone, or lead, or are
electrotyped. Stamps prepared by either of these modes

25

can be counterfeited vritli o^reat facility bv a mere tyro in the
art of engraving ; and the Department couhl not risk its
revenues on such slender security without disregarding the
public interest.

PAYMENT OF POSTAGE.

Capital is always timid in times of war and commercial
depression like the present. And this, with the suspension
of specie payment by all the banks, and the fact that corpo-
rations and individuals have issued and put in circulation,
in many portions of the country, small notes which are
substituted for specie as change, has caused the coin of the
country to disappear, to a great extent, from circulation.
This renders the payment of postage difficult in the absence
of stamps, embarrassing the people, and necessarily reduc-
ing the revenues of the Department. In view of this, and
of the impossibility of obtaining a sufficient supply of post-
age stamps for the present, I recommend that Congress ex-
tend the provisions of the act " to require the receipt by
the postmasters of the Confederate States of Treasury notes,
in sums of five dollars and upwards in payment of postage
stamps or stamped envelopes," approved the 3')th of August
last, so as to make the Treasury notes receivable in sums of
five dollars, or of amounts equal to other denominations of
Treasury notes, for j^ostage. It is necessary to limit the
receipt of Treasury notes to amounts corresponding with
their several denominations, and to leave it to the postmas-
ters and persons paying postage to arrange between them-
selves the manner in which these notes may be used, as it
cannot be expected that postmasters should furnish coin in
change for them, on account of its scarcity, and it would be
wholly inadmissible to alloAV them to receive and use the
small notes, issued by corporations and individuals, for
change, partly on account of the general vf orthlessness of such
notes and the facility for counterfeiting them, and partly
because whatever value they have is usually limited to some
small locality which renders them wholly unfit for use as a
Confederate currency.

INCREASE OF CLERICAL FORCE.

At the time the present permanent clerical force was pro-
vided for this Department, there were but seven States in
the Confederacy; since that time four States have been

26

added, increasing the business of the Department to an
extent be^'ond the ability of the reguhir clerical force to
give it that prompt and careful dispatch which is essential
to a successful administration of its affairs. Hence it be-
came necessary to employ, temporarily, some ten additional
clerks. The necessity of an immediate revision of the post
routes in the States of Alabama, Mississippi, Louisiana,
Texas, Arkansas and Tennessee, preparatory to their being
advertised for proposals for new service, to begin on the
30th June next, at which time the present contracts termi-
nate, will, in addition to the reason first stated, render a
permanent augmentation of the clerical force necessary.
Therefore, I respectfully suggest that there be added to the
present permanent force of the Department five clerks at an
annual salary of twelve hundred dollars each, and five clerks
at an annual salary of one thousand dollars each.

SERVICE IN KENTUCKY AND ARIZONA.

The condition of affairs in the State of Kentucky and 'n
the Territory of Arizona, (Missouri now being admitted
as a State of the Confederacy), requires that postal facili-
ties be extended to such portions of them as are in the
possession of our friends, or are occupied by our troops. A
portion of their citizens are gallantly struggling in arms to
unite their political destiny with ours, and it is of the first
importance that we aflbrd facilities for correspondence and
for the circulation of newspapers between our people and
them, to promote trade and secure a free interchange of
opinions. And I respectfully recommend that Congress give
this Department such authority as may be proper for this
purpose.

FREE MAIL MATTER.

I must also call attention to the fact that the special and
route and local agents of the Department are re(|uired to
make frequent and sometimes voluminous reports to the
Department, and to correspond with each other and with
postmasters, in regard to the service ; and there is no law
to relieve them from paying the postage out of their private
means, on this correspondence relating to ofiicial business.
This condition of things must result in taxing these neces-
sary agents, so as to drive them out of the service or in
causing them to omit the discharge of their most important

27

duties, in order to avoid the expense of paying the postage
on their communications.

The contractors for carrying the mails are also required
to make frequent responses to communications sent them
from the Department in relation to the service, and to return
to the Auditor, quarterly, the evidence of payments made
them for such service, and to report to the Department the
cause of every failure and of all irregularities, in the ser-
vice, on their several routes. I must therefore ask that
Congress make some provision to relieve them from the pay-
ment of thJs postage. This can be done by authorizing
them to charge the amount to the Confederate States in
their quarterly accounts for repayment under such restric-
tions as Congress may prescribe, or by authorizing them to
frank such communications, under the same restrictions
placed upon others connected with the Post Office Depart-
ment, who are authorized to frank their official correspon-
dence.

This again brings up the question as to Avhethcr we are
to adhere strictly to the policy of requiring all mail matter
to be pre-paid, or are to extend the franking privilege be-
yond its present limits.

By the 5th section of the Act " to prescribe the rates of
postage in the Confederate States of America, and for other
purposes," approved February 23, 1861, the franking priv-
ilege was abolished, except as to the Post Master General,
his Chief Clerk, the Auditor of the Treasury for the Post
Office Department, and " the several deputy post masters
throughout the Confederate States."

By the 4th section of " an Act to amend An Act to pre-
scribe the rates of postage in the Confederate States of
America, and for other purposes, approved February 23,
1861," which latter Act was approved May 13, 1861, the
franking privilege was extended to the Chiefs of the Con-
tract, Appointment and Finance Bureaus of the Post Office
Department.

If it should now be extended to the persons above named,
the entire official correspondence of this Department will
then be carried on without the payment of postage. If it
is not extended to these persons because the principle is
wrong, then it should be abolishedas to those now exercising
it, and all should be required to pay the postage on their
official correspondence and charge it for repayuient to the
Confederate States. And this Avould involve the necessity

28

of adopting sucli checks against tlie misapplication of the
fund set apart for the payment of such postage as wouhl
guard against loss to the Treasury. Novr, so far as relates
to the Post Office Department, the check against the abuse
of the franking of letters, &c., is, that every communication
franked must be seen by others, and if any part of it relates
to private matters, the person franking it is liable to a fine
of three hundred dollars.

The franking of the official correspondence of the De-
partment is only productive of a loss of revenue by the
abuse of the authority to frank. The result being the same
to the revenues of the Department as it would be if the De-
partment paid the postage out of the Treasury, and collected
and paid it in again. But if the postage of the Department
is to be paid, accounts and vouchers must be kept as evidence
of the proper application of the fund used for that purpose,
or we must trust this fund to the honor of more than eight
thousand post masters, two thousand five hundred contrac-
tors, and more than a hundred special and route, and local
agents of the Department, besides those in the Post Office
Department. To adopt the latter policy would be to aban-
don the principles, for the security of revenue, of our own
and all other Governments, which it is fair to presume will
not be done. It is true that no great amount of fraud could
be perpetrated by any one of these persons; but small frauds
by many might produce a considerable aggregate. If we
adopt the former course of requiring accounts and vouchers
to be kept, this will require the time of correspondents and
accountants, and the use of books and stationery to be added
to the cost of postage. And it is to be remembered that the
Government pays as a compensation to post masters on all
sums of one hundred dollars or less, 60 per cent., and if for
night service, 70 per cent., and on sums of three hundred
dollars more, 50 per cent., on all sums of two thousand dol-
lars more, 40 per cent., and on all sums over two thousand
four hundred dollars, 15 per cent., until their commissions
reach two thousand dollars. And if the Department should
pay its postage, the per cent, allowed as a compensation to
post masters would necessarily be subtracted from the amount
of postage paid out before its return to the Treasury. All
that is said on this subject in relation to the Post Office De-
partment applies with equal force to the other departments
of the Government except that to make that Department
self-sustaining, it is not necessary that any amount should

29

be paid out of the general Treasury to cover the expense of
its own correspondence when franked in order to render it
self-sustaining — the theory being that its postage is to be
paid out of its own revenues, while all matter not connected
Tvith the Department, embracing the correspondence of the
other departments, must be paid in order that it may not be
deprived of its revenues. And if the amount of the postage
of the other departments could be ascertained so as to be
paid in gross into the Treasury, I am of opinion it would be
more convenient and less expensive, and probably less liable
to abuse, to frank the correspondence of all the departments
than to pre-pay the postage on it. But there is no means
by which the amount of the postage of the other depart-
ments can be ascertained so as to be paid in gross. This
being so, it is for Congress to determine wdiether they shall
continue to pre-pay their postage, and if that policy be ad-
hered to, whether it shall be applied to the Post Office De-
partment.

These views are presented on the questions of convenience
and economy alone, and without reference to the influence
which, allowing the official correspondence of the depart-
ments of the Government to be franked, might have, in ex-
tending the franking privilege to Congress, and from thence
to its abuse in the printing, binding, folding and distribu-
tion of what is called public documents, as well as its abuse
by covering mere private correspondence, which should, un-
der no pretense, be allowed to be franked. If it be thought
that allowing the Departments to frank their official corres-
pondence would be regarded as a precedent or a reason for
allowing the privilege to members of Congress and to others,
then I am persuaded it would be best to forego any advan-
tage the Government might derive from it, if such advantage
should be thought to exist, rather than risk the evils which
flowed from the franking privilege in the old Government.

This Congress commenced its legislation on this subject
by abolishing the franking privilege, except as to certain
persons connected with the postal service. But by the 1st
section of the Act " relating to the pro-payment of postage
in certain cases, approved July 29, 1861," it is provided
that letters, &c., may be sent through the mails by any offi-
cer, musician, or private of the army without the pre-pay-
ment of the postage, but leaving it to be paid at the point
of delivery, upon the person endorsing his name, &c., on
the letter or other matter sent. This was the first departure

30

from the rule requiring pre-payment of mail matter, except
as to the correppondence of this Department. It is also the
first act recognizing the franking privilege as a personal
convenience or benefit. In addition to the fact that this act
is -wrong in principle, and as a precedent operates inju-
riously in two particulars, it deprives the post masters who
prepare the way-bills and mail such letters, of any com-
pensation, and gives the compensation to post masters who
only deliver the letters, and who also get the postage on the
return letters Avliich go back to the post masters, mailing
the first letters for nothing, and they have to deliver the
answers without compensation. And it enables persons,
which is often done, to tax others, on whose bounty they
have no claim, with the postage both ways on their private
business.

The 3d section of the same Act confers a similar privilege
on members of Congress, and is obnoxious to the same ob-
jections.

From the above, it will be seen that a distinction is taken
between the duty of franking the purely official correspon-
dence of the departments of the Government as a means of
saving the public moneys, and to avoid an increase of the
number of correspondents and accountants, and the privilege
of franking as a matter of personal interest and advantage
to those invested with it, at the expense of the Treasury ;
the one a means of saving the revenues of the Department
so as to render it self-sustaining without personal benefit to
any one — the other of reducing its revenues so as to ren-
der appropriations from the general Treasury necessary to
its support, and of indirectly taxing the public for private
and personal benefit.

MAILABLE MATTER NOT TO BE CARRIED AS
FREIGHT.

Tliis Department has encountered many complaints be-
cause, under our legislation, postage is required to be paid
on all neAvspapers and periodicals, (except those authorized
to be sent free of postage, as exchanges between publishers).

Under the hxAVS of the United States, as they stood up to
February last, newspapers and periodicals could be sent as
freight, by expressmen or others, along the post-roads, free
of postage. Under our laws, all newspapers and periodicals
are mailable matter, and cannot be sent along the post-roads
without the payment of postage.

31

If Congress should allow them to be carried by express-
men and others as freight, along the railroads and principal
thoroughfjxres, it will thus deprive the Department of the
principal, or, at least, of a very large part of the revenue
derived from the postage on such matter, and would relieve
the readers of papers and periodicals, who happen to be for-
tunate in living on these great thoroughfares, and who, on
that account, enjoy special advantages in obtaining the ear-
liest news, from the payment of that class of postage ; while
that class of readers not residins; on those thorouo-hfares
and who, from that cause encounter greater delays and dif-
ficulties in getting news, are compelled from the necessity of
the case, to pay postage on such papers and periodicals.
This would be to compel one class of citizens to contribute
newspaper and periodical postage lor the support of the
mail service, and to exempt another, and more favored class,
from that burden. And it is no just answer to this, to say
they all have the same privilege of employing expressmen.
This may be theoretically, but is not practically true.

It is believed to be true, however, that these complaints come
from the publishers and expressmen, and not so much, if at
all, from the readers of papers and periodicals. And it is a
sufficient answer to them, that class legislation is contrary to
the theory of our Government, and in violation of the
cherished principles of equality and justice on which our
institutions are founded.

On this subject, justice requires it to be said that the
legislation of the United States, in relation to postage
on newspapers and periodicals, cannot be accounted for
on any principle of reason or fairness. But it may be
accounted for by the vast influence of those publications
over the popular mind, and especially over elections. .
It is easily understood how a man might propitiate
their favor by promising exemptions and gratuities to
them, and how another might fail to obtain that favor, who
Avould steadfastly adhere to just and sound principles, and
refuse to purchase popuittr favor, at the expense of principle
and of treasure which belongs to others.

Our legislation on this subject is a marked improvement
on that of the old Government ; and when the rates of post-
age on newspapers and periodicals shall be made to approxi-
mate more nearly to an equitable proportion with the postage
on letters and sealed packages, it will be more in harmony

32

with reason and fairness, and less obnoxious to the charge of
chxss and partial legislation than at present.

The Government has been vested with certain functions
which it was believed could be discharged with greater ben-
efit to the public by it than b}^ private enterprise.

Among these was the establishment and management of
our system of postal communication, which is so necessary
in conducting the civil administration of the Government,
and its military and naval affairs, and of so incalculable im-
portance to the public as a means of conveying intelligence.
Our theory is that the Government must provide the ma-
chinery of this Department and conduct its operations, but
at the expense of those who make use of its facilities. That
is, that this Department shall be self-sustaining. To make it
so, and to make its revenues secure, and their accrual steady
and reliable, we declare letters, sealed packages, newspapers^
periodicals, pamphlets, &c., to be mailable matter, and make
their transmission along the post-roads otherwise than
throuirh the mails unlawful. The Government having been
charged with the heavy expense of affording postal facili-
ties to the country, is fully justified by reason and necessity
in adopting this means of making itself the exclusive carrier
of certain classes of matter at fixed and reasonable rates of
compensation, to reimburse that expense. And if the Gov-
ernment should be required to carry the newspaper and
periodical mail in the sparsely settled portions of the coun-
try, where the matter to be carried is too limited to justify
express or other private companies in doing it, and where it
can only be done by the Department at a loss of its re-
venues, and if, at the same time, it shall allow this
class of mail matter to be carried by express or other
private companies along the railroads and other great
thoroughfares, where its amount would increase the revenues
of the Department, it is difficult to understand why we shall
not also allow the express and other companies to carry the
letter mail on the railroads and other great thorouglifares,
where it is profitable, and allow the Government to be the
exclusive carrier of all classes of matter on such routes only
as pass through sparsely settled portions of the country
v/hich afford but little revenue.

To do this would end in breaking down the Department,
or in keeping it in operation at the expense of the general
Treasury. The policy of allowing mail matter to be carried
as freight, wherever it may be profitable to private carriers,

33

creates rivals who are invited by their interests to contend
with the Department for its revenues on all the most im-
portant lines of postal communication ; those which are most
expensive to the Department and most difficult to control-
Such a policy would be both unwise and disastrous, and I
cannot too strongly recommend the continuance of the policy
of refusing to allow newspapers and periodicals to be carried
over the post-roads as freight, and of requiring the payment
of postage on them as on all other mail matter.

Appended to this report, in addition to the other exhibits,
will be found tabular statement, marked G, which shoAvs the
length of mail routes, the modes of transportation and the
annual cost of transporting the mails in the eleven States
which now compose the Confederate States, for the fiscal
year ending June 3()th, 1860.

Table H, which exhibits the number of mail routes, ma.il
contractors, route agents, and mail messengers for the same
period.

Table I, which exhibits the railroad service for the same
period, showing the length of routes, distances in each
State, number of trips, annual pay in each State, annual
cost per mile on each route, annual cost of route agencies.
annual cost of mail messenger service, total cost on each
route, total annual cost per mile, and total aggregate cost per
mile in each State.

And table J, which exhibits the steamboat service for the
same period, showing the number of routes, termini, length,
distance in each State, number of trips per week, and annual
pay in each State.

I have the honor to be, with great respect, your obedient
servant,

JOHN H. REAGAN,

Postmaster General.
To the PRESIDE^T.

(A.)

BY THE POSTMASTER GF.NERAL OF THE CONFEDERATE STATES,

A PROCLAMATION.

Whereas, By the provisions of an act, approved March
15tli, 1861, and amended by the first section of an act ap-
proved May 9th, 1861, the Postmaster General of the Con-
federate States '^^ is authorized, on and after a day to be
named by him for that purpose, to take the entire charge
and direction of the postal service in the Confederate
States," and all conveyance of mails within their limits,
from and after such day, except by authority of the Post-
master General thereof, is thereby prohibited :

And whereas, the Postmaster General of the Confederate
States of America did, by a proclamation issued at Mont-
gomery, Alabama, on the 13th day of May, 1861, notify all
persons connected with the Post Office Department, that
from and after the first day of June, 1861, he would assume
the entire control and direction of the postal service within
the Confederate States :

And whereas, the State of Tennessee has, by virtue of
an act passed by the Congress of the said Confederate States,
a^pprovcd May 17, 1861, and the adoption and ratification of
the Provisional Constitution of the said States by the pro-
perly and legally constituted authorities of said State of
Tennessee, become a member of the said Confederate States
of America:

Now, therefore, I hereby direct all Postmasters, Route
Agents and Special Agents within the State of Tennessee, and
now acting under the authority and direction of the Postmas-
ter General of the United States, to continue in the discharge
of their respective duties under the authority vested in me
by the Congress of the Confederate States, in strict con-
formity with such existing laws and regulations as are not
inconsistent with the laws and Constitution of the Confede-

35

( A. — Continued. )

rate States of America, and such further instructions as may
hereafter be issued by my direction : And the said Postmas-
ters, Route Agents and Special Agents are also required to
forward to this Department, without delay, their names,
with the names of the offices of which they are Postmasters-,
(giving the State and County,) to be directed to the '^ Chief
of the Appointment Bureau, Post Office Department, Rich-
mond, Virginia," in order that new commissions may be
issued under the authority of this Government : And all
Postmasters are hereby required to render to the Post Office
Department at Washington, D. C, their final accounts and
their vouchers for postal receipts and expenditures, up to the
8th day of June, taking care to forward with said accounts all
postage stamps and stamped envelopes," remaining on hand,
belonging to the Post Office Department of the United-
States, in order that they may receive the proper credits
therefor in the adjustment of their accounts ; and they are
further required to retain in their possession, to meet the
orders of the Postmaster General of the United States, for
the payment of mail service within the Confederate States,
all revenue which shall have accrued from the postal service
prior to the said 8th day of June last.

All Contractors, Mail Messengers, and Special Contractors
for conveying the mails within the State of Tennessee, un-
der existing contracts with the Government of the United
States, are hereby authorized to continue to perform such
service under my direction, from and after the day last above
named, subject to such modifications and changes as may be
found necessary, under the powers vested in the Postmaster
General by the terms of said contracts and the provisions of
the second section of an act approved May 9th, 1861, con-
formable thereto : And the said Contractors, Special Con-
tractors, and Mail Messengers, are required to forward,
without delay, the number of their route or routes, the na-
ture of the service thereon, the schedules of arrivals and
departures, the names of the offices supplied, and the amount
of annual compensation for present service, together with
their address, directed to the " Chief of the Contract Bu-
reau, Post Office Department, Richmond, Virginia."

Until a postal treaty shall be made with the Government
of the United States for the exchange of mails between that-
Government and the Government of this Confederacy, Post-

36

( A. — Continctl. )

masters will not be authorized to collect United States post-
age on mail matter sent to or received from those States ;
and until supplies of postage stamps and stamped en-
velopes are procured for the pre-paymcnt of postage within
the Confederate States, all postages must be paid in money,
under the provisions of the first section of an act approved
March 1st, 1861.

Given und:'r my hand and seal of the Post Office Depart-
'^-^ ment of the Confederate States of America, at

\ h. s. [ Richmond, Virginia, the 3rd day of July, in the

^ v^v^ ^ year 1861.

JOHN II. REAGAN,

Postmaster General.

NEW POSTAGE ACTS.

NOTICE TO THE PUBLIC AND INSTRUCTIONS TO POSTMASTERS.

The following laws have been enacted by the Congress of
the Confederate States of America :

Letter Postage.

*^ AN ACT to prescribe the Rates of Postage in the Con-
federate States of America, and for other purposes.

^^ The Congress of the Confederate States of America do enact y
That from and after such period as the Postmaster General
may by proclamation announce, there shall be charged the
following rates of postage, to wit : For every single sealed
letter, and for every letter in manuscript or paper of any
kind, upon wdiich information shall be asked for or commu-
nicated in waiting or by marks or signs, conveyed in the

37

( A. — Continued. )

mail for any distance between places witliin the Confederate
States of America, not exceeding five hundred miles, five
cents ; and for any distance exceeding five hundred miles,
double that rate ; and every letter or parcel not exceeding
half an ounce in Aveio:ht sball be deemed a sino;le letter, and
every additional weight of half an ounce, or additional
weight of less than half an ounce, shall be charged with ad-
ditional single postage ; a?id all packages containing other than
printed or written matter — and money packages are inclu§td in
this class — shall he rated by weight as letters are rated, and shall
be charged the rates of postage on letters ; and all drop let-
ters, or letters placed in any post office not for transmission,
but for delivery only, shall be charged with postage at the
rate of two cents each ; and in all the foregoing cases the
postage must be prepaid by stamps ; and all letters which
shall hereafter be advertised as remaining over or uncalled
for in any post office, shall be charged with two cents each
in addition to the regular postage, both to be accounted for
as other postages of this Confederacy."

Postage on Newspapers, Pamphlets, and other printed matter, in-
eluding Books.

"And be it further enacted, That all newspapers pub-
lished within the Confederate States, not exceeding three
ounces in weight, and sent from the office of publication to
actual and bona fide subscribers within the Confederate
States, shall be charged with postage as follows, viz : The
postage on the regular numbers of a newspaper published
w^eekly, shall be ten cents per quarter; papers published
semi-weekly, double that amount; papers published thrice
a week, treble that amount ; papers published six times a
week, six times that amount, and papers published daily,
seven times that amount. And on newspapers weighing
more than three ounces, there shall be charged on each ad-
ditional ounce in addition to the foregoing rates, on those
published once a week, five cents per ounce, or fraction of
an ounce, per quarter ; on those published twice a week,
ten cents per ounce per quarter ; on those published three
times a week, fifteen cents per ounce per quarter ; on those
published six times a week, thirty cents per ounce per
quarter ; and on those published daily, thirty-five cents per-
ounce per quarter.

3d

( A. — Continued. )

" And periodicals published oftener than bi-monthly shall
be charged as newspapers.

" And other periodicals, sent from tlie office of publication
to actual and bona fide subscribers, shall be charged with
postage as follows, \\z : The postage on the regular numbers
of a periodical, published Avithin the Confederate States, not
exceeding one and a half ounces in weight, and published
monthy, shall be tAvo and a half cents per quarter ; and for
ever}^rdditional ounce, or fraction of an ounce, two and a
half cents additional ; if published semi-monthly, double
that amount. And periodicals published quarterly or bi-
monthly, shall be charged two cents an ounce ; and regular
subscribers to newspapers and periodicals shall be required to
pay one quarter's postage thereon in advance, at the office of
delivery, unless paid at the office where published.

** And there shall be charged upon every other newspaper,
and each circular not sealed, hand-bill, engraving, pamphlet,
periodical and magazine, which shall be unconnected with
any manuscript or written matter, and not exceeding three
ounces in weight, and published within the Confederate
States, two cents ; and for each additional ounce, or fraction
of an ounce, two cents additional ; and in all cases the pos-
tage shall be pre-paid by stamps or otherwise, as the Post-
master General shall direct.

** And books, bound or unbound, not weighing over four
pounds, shall be deemed mailable matter, and shall be charged
with postage, to be prepaid by stamps or otherwise, as the
Postmaster General shall direct, at two cents an ounce for
any distance.

" And upon all newspapers, periodicals and books, as
aforesaid, published beyond the limits of the Confederate
States, there shall be charged postage at double the forego-
ing specified rates.

" The publishers of newspapers or periodicals Avithin the
Confederate States, may send and receive to and from each
other, from their respective offices of publication, one copy
of each publication, free of postage.

** All newspapers, unsealed circulars, or other unsealed
printed transient matter, placed in any post office, not for
transmission but for delivery only, shall be charged postage
at the rate of one cent each."

39

( A. — Continued. )

Franking Privilege.

" And be it further enacted, That from and after the day
when this act goes into effect the franking privilege shall be
abolished : Provided, That the Postmaster General and his
chief clerk, the Chief of the Contract, Appointment and
Finance Bureaus, and the Auditor of the Treasury for the
Post Office Department, shall be and they are hereby author-
ized to transmit through the mail, free of postage, any let-
ters, packages, or other matters relating exclusively to their
official duties or to the business of the Post Office Depart-
ment ; but they shall, in every such case, indorse on the
back of the letter or package to be sent free of postage, over
their own signature, the words '^ Official Business." And
for any such indorsement falsely made, the person so offend-
ing shall forfeit and pay three hundred dollars. And pro-
vided further, The several deputy postmasters throughout
the Confederate States shall be and hereby are authorized to
send through the mail, free of postage, all letters and pack-
ages which it may be their duty or they may have occasion
to transmit to any person or place, and which shall relate
exclusively to the business of their respective offices or to
the business of the Post Office Department ; but in every
such case the deputy postmaster sending any such letter or
package shall indorse thereon, over his own signature, the
words '^ Post Office Business." And for any and every such
indorsement falsely made, the person making the same shall
forfeit and pay three hundred dollars."

Payment of Postage in Money until Postage Stamps and
Stamped Envelopes are pi'ovided.

Section 1. The Congress of the Confederate States of Amer-
ica do enact. That until postage stamps and stamped envel-
opes can be procured and distributed, the Postmaster Gene-
ral may order the postage of the Confederacy to be pre-pai4
in money, under such rules and regulations as he may
adopt."

Repeal of the Letter Registration System.

" And he it further enacted. That the third section of an
act entitled ' An act further to amend an act entitled ' An
act to reduce and modify the rates of postage in the United

40

(A. — Continued. )

States, and for other purposes, passed March third, eighteen
hundred and fifty-one,' approved March 3d, 1855, ^vhereby
the letter registration S3^stem was estahli.slied, be and is
hereby repealed from and after the day when this act goes
into effect."

Conveyance of Mail Matter by " Express and other Chartered
Companies y

" Sec. 5. That it shall be lawful for the Postmaster Gene-
ral to allow express and other chartered companies to carry
letters and all mail matter of every description, whether the
same be enclosed in stamped envelopes or pre-paid by stamps
or money ; but if the same be pre-paid in money, the money
shall be paid to some postmaster, who shall stamp the same
paid, and shall account to the Post Office Department for the
same, in the same manner as for letters sent by the mail ;
and if pre-paid b}^ stamps, then the express or other com-
pany receiving sucli letters for deliver}^ shall obliterate such
stamps, under the penalty of five hundred dollars for each
failure, to be recovered by action of debt in any court hav-
ing jurisdiction thereof, in the name of the Postmaster
General, for the use of the Confederate States ; but if said
letters or mail matter shall be received by such express or
other company, not for delivery, but to be mailed, then the
matter so carried shall be pre-paid at the same rate that the
existing law requires it to be paid from the point where it
may be received by such company to the point of its desti-
nation, and the postmaster, where such company may mail
the same, shall deface the stamps upon the same.

** Sec. 6. Be it further enacted. That agents of any com-
pany who may carry letters under the provisions of this act,
shall be required to take an oath that he will faithfully com-
ply with the law of the Confederate States relating to the
carrying of letters or other mail matter, and obliterating
postage stamps, which oath may be administered by any
justice of the peace, and shall be in writing, and signed by
such agent or messenger, and filed in the Post Office De-
partment.

"Approved, March 15th, 1861."

41

( A. — Continued. )

" AN ACT to continue in force certain laws of the United

States of America.

" Be it enacted by the Confederate States of America in Con-
gress assembled, That all the laws of the United States of
America, in force and in use in the Confederate States of
America on the first day of November last, and not incon-
sistent with the Constitution of the Confederate States, be
and the same are hereby continued in force until altered or
repealed by the Congress.

" Adopted February 9th, 1861.''

Postmasters' returns must be made to close on the 31st
March, the 30th June, the 3l)th September, and the 31st
December, in each year; and the return for the fractional
part of the last quarter, which ended June 3Uth ult., must
be promptly rendered to the Chief of the Finance Bureau,
Post Office Department, Richmond, Virginia, in the form
and manner prescribed by existing laws and regulations.

Postmasters are instructed to retain in their possession,
subject to the further orders of this Department, for the
benefit of the Confederate States, all mail bags, locks and
keys, marking and rating stamps, blanks for quarterly re-
turns of postmasters, and all other property, belonging to or
connected with the postal service, and to return forthwith to
the Chief of the Appointment Bureau of this Department,
a full inventory of the same.

They will also report to the Chief of the Finance Bureau
of this Department, their journal or ledger account with the
United States, for the service of the Post Office Department, up
to and including the ^th day of June xdt., in accordance with
the general regulations embraced in chapter 24 of the edi-
tion of Laws and Regulations of the Post Office Department,
issued May 15th, 1859, page 106, exhibiting the final bal-
ance in their possession.

42

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(C.)

CONFEDERATE STATES OF AMERICA,

General Post Office Department,
Richmond, Va., Nov. 22, 1861.

Hon. John II. Reagan,

Postmaster General :

Sir : I have the honor herewith to submit a detailed state-
ment of the receipts and expenditures of the Post Office De-
partment for the fractional quarter ending SOth June, 1861,
so far as the same can be exliibited from the books and files
of this office.

It is proper to premise that, owing to the limited period
over which the transactions noticed in the annexed state-
ment extend, (only one month,) they do not afford a true
criterion of the regular quarterly business of the office.
Other causes also have operated not only to prevent the re-
turns of postmasters from being forwarded to the Depart-
ment, but have materially lessened the receipts of the various
offices. The unsettled condition of the country, the sudden
change on the 1st of June of the postal service, the increased
rates of postage, the want of stamps for the pre-payment of
postages, and the disappearance of specie from circulation,
have, to a great extent, combined to materially diminish the
revenue from postages.

The principal difficulty, how^ever, in ascertaining the pos-
tal receipts for the period mentioned, grows out of the fact
that a large number of postmasters have made no returns of
their accounts for June, but have embraced the items of these
accounts in their returns for the quarter ending SDth Sep-
tember.

There are 8,946 post offices within the Confederate States,
and from these only about one-half, or 4,922 postmasters
have made returns for June, leaving 4,024, who, it is pre-
sumed, have deferred making their returns until they send
in their accounts-current for the quarter ending 3()th Sep-

44

( C. — Continued. )

teraber. These last mentioned accounts began to arrive
about the middle of October, and have been accumulating
very rapidly up to this date.

Of the accounts for the fractional quarter ending 30th
June, and which were received before the end of September,
4,701) have been examined and corrected, and of those which
have been received since the 30th of September, 2,771 have
been examined and corrected, leaving 1,275 to be examined
before the end of the present quarter terminating 31st De-
cember, by which time it is probable that all the postmasters
will have sent in their accounts-current, from which a much
more exteiided report of the revenue arising from postal re-
ceipts can be made, and from which more reliable estimates
may be made of the receipts from this branch of the service
for the fiscal year ending June 30th, 1862,

From the annexed tabular statement it will be seen that
the gross revenue arising from postal receipts for the frac-
tional quarter ending 30th June, being the proceeds, however,
of only 4,922 offices, was $92,384 67. The expenses for
the same period, exclusive of amounts due for transportation
of mails, and for payments to route and local agents, and
mail messengers, was $49,040 60. The amount expended
and due for transportation of mails, and payments to route
and local agents and mail messengers, and to contractors for
transportation, was $151,897 37, making a total of expen-
ditures amounting to $200,939 97, and showing an excess
of expenditures over the receipts of the office of $108,553
30.

45

( C. — Continued. )

The receipts of the various offices in the several States
were as follows :

LETTERS, NEWSPAPERS, ETC.

Virginia $21,026 13 $2,1 i6 21

North Carolina 5,768 34 1,263 57

South Carolina 6,556 21 1^345 32

Tennessee 2,102 50 301 91

Arkansas 2,238 82 266 34

Texas 3,835 43 719 72

Georgia 11,250 80 1,972 76

Alabama 8,166 63 1,574 38

Florida 2,771 96 170 10

Mississippi 7,524 46 852 85

Louisiana 8,217 10 1,390 00

$79,458 38 $11,973 16

Add for excess of
emoluments 953 13

For ship, steamboat
and way letters 116 66

The expense of collecting the foregoing amount in the
separate States was as follows :

COMPENSATION OF INCIDENTAL

POSTMASTERS, EXPENSES.

Virginia $6,906 97 $1,755 82

North Carolina 3,475 82 317 88

South Carolina 3,015 12 701 38

Tennessee 1,059 54 500 02

Arkansas 1,550 89 51 79

Texas 2,451 50 304 27

Georgia 5,614 52 1,643 23

Alabama 3,952 75 1,368 18

Florida 820 12 13 93

Mississippi 4,100 21 59 09

Louisiana 2,099 76 2,250 13

$35,047 20 $8,965 72
35,047 20
Balance due Post-
master in Arkansas 176 32
Total expenses $44,189 24

46

( C. — Continued. )

The following tabular statement exhibits in a condensed
form the total of expenditures and receipts for the fractional
quarter ending June 3(1, 1861.

Statement of the Revenue and Expenditures of the Post
Office Department of the Confederate States, and also the
Amount Due Contractors and Postmasters, as Exhibited
by the books in the Office of the Auditor of the Treasury
for the Post Office Department for June, 1861, viz :

EXPENDITURES.

For transportation of inland

mails, including payments to

route agents, local agents and

mail messengers $115,152 26

Amount due contractors for

transportation of the mails

yet to be settled 36,745 11

Compensation of postmasters. . 35,U47 20
Compensation of clerks in post

offices 8,117 10

Ship, steamboat and way letters 116 66

Advertising 1,173 91

Mail bags 175

Blanks 3,000 00

Mail locks, keys and office

stamps 73 67

Mail depredations and special

ao-ents 472 73

o

Miscellaneous payments 86 I 26

Balance due postmaster 176 32

$200,937 97

RECEIPTS.

From letter postage 79,458 38

" postage on newspapers
andpamphiets 11,973 16

From emoluments 953 13

92,384 67

Excess of expenditures $108,553 30

47

( C. — Continued. )

Adopting the following table as a basis for estimating the
probable receipts from the same sources for the year ending
June 30, 1862, and comparing that estimate with the receipts
from all the Post Offices now in the Confederate States, for
the fiscal year ending SOth June, 1860, the following is the
result:

Total receipts of all the offices in 1860 $1,517,536 00

Total receipts of all the offices in 1861 1,091,012 00

Showing a deficiency for 1861 of $426,524 00

Amount of receipts for postage
of the United States for the
year 1860.

Estimates of a year's receipts for
postage for the C. States for
the year ending June 30, 1862.

STATES.

AMOUNT.

STATES.

AMOUNT.

Virginia

$275,269 00
97,812 00
113,675 00
183,120 00
28,319 00
148,471 00
116,018 00
128,177 00
218,323 00

Virginia ...

$277,704 00
84,372 00
92,412 00

159,024 00
31,292 00

110,880 00

100,512 00
54,648 00

115,284 00

North Carolina. . .
Soutli Carolina.. ..
Georgia

North Carolina . . .
South Carolina

Florida

Florida

Alabama

Mississippi

Texas

Louisiana

Mississippi

Texas

Louisiana

Tennessee

155,732 00

Tennessee ....

28,836 00

30,048 00

$1,091,012 00

Arkansas ...

52,020 00
$1,517,536 00

Arkansas

Total

Total

As the foregoing table, however, is based upon the re-
turns from only 4,922 Post Offices, the receipts must neces-
sarily be increased by the returns from the remaining 4,024
offices ; but these last mentioned are generally small offices,
scattered throughout the interior, from many of which the
receipts will be very inconsiderable.

It will be seen by referring to the foregoing comparative
statement, that the prevailing hostilities have affected the
current business of the Post Office Department, in common
with all other business of the country. For instance, in
the State of Virginia, where large bodies of troops have
been stationed, the receipts from postages were diminished
but in a small degree ; while in South Carolina, Texas and
Louisiana, the diminution is very large. As soon as the ac-

48

( C. — Continued. )

counts current for the quarter ending 3()th of September
shall be examined and corrected, I will be able to report
more accurately the data from "svliich estimates of postal
revenue for the fiscal year ending 3i)th June, 1862, may bo
made.

In addition to the amount of expenses incurred for com-
pensation of Postmasters, &c., as before stated, the following
table vrill exhibit the amount of expenses, paid and incurred,
to contractors for carrying the mails, to Route Agents,
Local Agents, Mail Messengers and Special Messengers, for
the fractional quarter ending 30th June, ISGl :
Statement of expenses paid and incurred to Contractors for
carrying the Mails, to Route Agents, Local xVgents, Mail
Messengers and Special Messengers for the quarter end-
ing 3()th June, 1861 :

STATES. AMOUNT DUE. AMOUNT PAID.

Alabama $16,233 22 $16,600 97

Arkansas 10,056 88 9,766 67

Florida 3,054 05 1 ,093 92

Georgia 6,702 74 7,590 72

Louisiana 20,970 09 17,268 60

Mississippi 18,488 86 12,131 17

North Carolina 6,811 96 6,586 63

South Carolina 10,435 22 9,772 47

Tennessee 3,689 39 2,443 31

Texas 34,775 80 12,488 91

Virginia 12,073 72 4,703 44

Route Agents 7,097 15 7,097 15

Local Agents 50 00 50 00

Mail Messengers 1,210 S6 1,210 36

Special Messengers 247 93 247 93

Total $151,897 37 $115,152 26

49

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50

(C. — Continued.)

As auxiliary to the ordinary postal service, an act of
Congress was passed May 21, 1861, appropriating the sum
of $^30,0UU for compensation of Agents, cost of materials,
and constructing, and operating telegraph lines, &c.

Of the above sum there has been expended for

the objects enumerated $15,136 77

Leaving unexpended to the credit of the appro-
priation, the sum of 14,863 23

$30,000 00

By an Act of Congress passed August 30, 1861, all post-
masters in the Confederate States, are required to account
to this Bureau, for all moneys collected by them for United
States postages, and not paid over at the time the Confeder-
ate States took charge of the postal service.

In obedience to your proclamation, made in conformity
with said act, about 5,300 postmasters have sent to this of-
fice, statements of balances due to or from the United States ;
but in most instances, the statements were so uncertain, that
I have issued a circular, addressed to each postmaster, giv-
ing special forms and instructions for making out the
accounts in accordance with the Act of Congress. So far
as an estimate can be made from the very vague returns sent
in from the postmasters, it appears that over $50,000 is now
in the hands of those who have made returns.

The same act provides that all persons having claims for
postal services against the United States, shall file the same
with the Auditor, under such forms as the Postmaster Gen-
eral may approve.

For that class of cases embracing principally contractors,
I have had tabular forms printed, with instructions for mak-
ing- out their claims ; and these forms, as well as those for
postmasters' accounts, are now being distributed.

The adjustment of these accounts will require a large
amount of labor, and great care and accuracy, and at least
two clerks will be necessary for their examination, recording
and settlement.

It is proper to state, in this connection, that when the
tjlerical corps was provided for this Bureau, there were but

51

(C. — Continued.)

seven States in the Confederacy, and it was supposed that
thirty (30) clerks would be a sufficient number to assist the
Auditor in settling the accounts of the Department. But
since that time four States have ^een added with as many
post offices, and contractors as were embraced within the
original seven States, by which the labors of the clerks, as
well as the Auditor have been greatly increased ; and unless
the number of clerks is augmented, the business of the Bu-
reau will be greatly retarded. The number of examiners is
too small for the number of accounts current now coming in,,
and m order to keep up the proper system of checks of one
division upon the other, it will be necessary to increase the
number of pay clerks and registers, and to provide for
the settlement of accounts of postmasters with the United
States, by detailing at least two clerks, one of whom can
examine and register the accounts, and the other can correct
this examination, and keep the books which will be necessa-
ry for the entry and preservation of the items of the
accounts.

I respectfully call 3'our attention to the labor performed
by the clerical corps in this Bureau, as shown by the con-
densed statements accompanying this report ; and the occa-
sion seems to be a proper one in whicli to express my
appreciation of the zeal and efficiency of the gentlemen who-
have been appointed to clerkships in this Bureau.
1 have the honor to be, very respectfully.

Your ob't servant,

BOLLING BAKER,
Auditor of the Treasury for the Post Office Departments

52

(C. — Continued.)

General Post Office Department,
Auditor's Office,
Richmond, Va., Nov. 27, 1861.

Hon. John H. Reagan, P. M. General :

biR :

In addition to my report of tlie 23d inst., I herewith trans-
mit a statement from the report of the President of the
Southern Telegraph Company, and also, the names of the
operators employed, the date of their appointments, rate of
compensation, amount paid, due, &c., &c.

LINES CONSTRUCTED.

DISTANCE.

TOTAL
DISTANCE.

COST.

West Point to Yorktown

1

59
17
23

19
5

20
4

70

99

48
70

217

Ship Point to Lands End

Fairfax Station to Fairfax C. II..
Falls Church, Munson Hill and
Chichester

Union Mills to Centreville

T^nmfriot; to Afiuia Creek .

$1,439 60

*• to ChaT)a\vanisic

304 35

Staunton to Jackson River

2,021 37

$4,365 32

LINES IN PROCESS OF CONSTRUCTION. |

Jackson River to Lewisburg. .36|

Dumfries to Manassas 25 1

New Orleans to Houston, Texas. |
Little Rock to Fort Smith, Ark..j
10 1-2 miles of insulated wire, 3

vehicles.

Batteries for field telegraph

DISTANCE.

61

ESTIMATED
COST.

$4,000 00

COST.

4,313 50

4,763 86

$4,000 00 I $13,442 68

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311

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119
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South Carolina

234

153

60

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453

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325
279

221
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126

666

Alabama

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Tennessee

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102

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65

93
61

452

Arkansas

228

Florida

57
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24

138

19

87

100

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361

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99

35

68

202

Texas

91

53

105

249

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1656

417

646

5280

Respectfully submitted,

B. N. CLEMENTS,
Chief of Appointment Bureau.

57

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