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January 29h 1799 --

Sir,

At the request of Messrs Lane & Salter I do myself the honor of submitting the following statement in relation to my agreement with them for your consideration thererin.

I consider the public as bound in good faith to fulfill certain engagements which I entered into with Messrs. Lane & Salter upon condition that they would erect & maintain works capable of producing cannon of a quality suitable for the public service.

The proposals dated June 16h 1798, of which I enclose a copy, are the latest and most reduced which I was able to obtain and were substantially agreed to by me -- Instead however of engaging to receive a certain number of Cannon of particular descriptions, my understanding was, that the public were to receive such cannon as should be required to the amount of forty thousand dollars value in the whole; the prices to be one hundred & fifty dollars pr Ton for twelve pounders, or a lesser size -- and if Cannon above twelve pounders were required, the price to be fifty pounds Pennsylvania currency pr Ton. It was expected however that Messrs Lane & Salter would most probably be employed in casting cannon of the smaller sizes. the works of Salisbury being prepared for those of a larger Calibre.

I consider myself equally engaged to Mr. Foxall and the other proprietors of Eagle Furnace as to Messrs. Lane & Salter -- Mr. Watson Naval agent at New-York, has on my behalf had communications with the Owners of Salisbury Furnace, and will be able to inform you precisely of the expectations which have been encountered in that quarter.

I have the honor to be Yours respectfully Sir Your most Obedient

The Secretary of War