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RICHMOND, FREDERICKSBURG AND POTOMAC R.R. CO.

               PRESIDENT'S OFFICE
                           Richmond, April 24th 1861

My dear Sir,

             On my return from a necessary

absence from home from Saturday morning till yesterday evening I received your letter of the 19th just late Sunday night. I also received your telegram of that day in relation to the Potomac Boats and proposing a meeting in Baltimore or Washington. This it would now be impossible for me to do. My constant presence here is of the utmost importance to the Company's interests; and it is at least doubtful whether going to Washington I should be allowed to return. You however from your residing so long a time in Philadelphia & being well known there would not experience the same difficulty of a personal interview be necessary. Even in the event of flagrant hostilities, which seems now imminent you might under a flag of truce pass freely between the [?] sections. Your telegram and letter both indicate that you are imperfectly informed as to the existing state of things here. I consider it nothing less than actual war. Business is neglected. Our people as one man are devoting themselves to drilling & every military preparation. I spent Sunday & Monday with parts of Saturday & Tuesday in [Staunton?] where I found the people more active & united if possible than here. Troops of volunteers were [hourly?] pouring in from all the Western countries. Some eight Companies from Augusta & [3?] from Rockbridge had already gone to Harper's Ferry and others were speedily to follow. On monday $50,000 were voted by the Augusta County Court in [aid?] of the volunteers and double or triple that amount was promised if needed; S.H.H. Stuart warmly seconding the measure. There is doubt & difficulty attending the wars mission of intelligence or letters between this and any point North of Alexandria. You have no doubt been informed by Mattingly of the seizure on Friday last by the Federal Government at Washington of all the Potomic Steamboat Co.'s Boats. [?] this I had sent Mr. Ruth up Thursday morning to advise with Mattingly & suggest the removal of at least two of the four boats to Acquia Creek where they could be moored or stranded high up the creek, out of reach of seizure. Having my apprehensions confirmed during Thursday I wrote to Mattingly by a trusted messenger the written letter or order, which he com- municated to you by telegraph. The telegraph office being then under the control of the Washington Government of course his tele- gram gave them full warning of our in- tention - which warning his and your telegrams to me confirmed - and led to the immediate seizure of the Boats. Knowing that this would be the inevitable consequence of communicating on the subject with Mattingly I had not entrusted any such communication to the telegraph or even the mail but only to a special messenger, who strictly kept his counsel. You will doubtless as president of the Potomac Steamboat Company take such steps as you may deem advisable to recover the Boats or compensation for them. I entirely concur in your views about the custody and deposite of the Company's funds in Philadelphia. By Saturday mornings mail Mr. Macmudo transmitted to you a Treasury Draft on the Assist. Treas. of the U.S. in Philadelphia for $3743 98/100 to be held by you subject to our orders in favor of the Phoenix Co. in payment of the Iron Rails. I now re- quest you to retain it to meet your acceptances for this Company and also any other remittances which we may be able to make to you, until you shall have in your hands a sufficient sum to meet those acceptances. As the chains and spikes have not as yet been sent we are under no obligation to remit for the rails until they are. There may be very great difficulty in procuring exchange on Philadelphia at any price (it now ranges at from 12 to 15 pr. et.) and I wish your acceptances to be protected first and at all events. I have no idea the Board will be willing to pay more than [0?] pr. et. if any thing as exchange on the dividends on the common stock; and doubt much if they will pay more than that on the Guaranteed. What shall I do about remit- ting these dividends supposing exchange can be had at all which is doubtful? Hoping soon to hear from you in haste very truly yours,

                     P.V. Daniel Jr.,

Moneine Robinson Esq. P.S. Please say to my sister I left my family well in [Staunton?].