And in the midst of this critical period, the labor problem pushed to the fore again. The revocation of industrial details, necessary as it was, had put almost the whole male population--in theory, at least--in the general Confederate army. How far-reaching was the effect of this order may be judged from the experience of the Columbia and Augusta Railroad Company. This road was building through the interior of the State a new line which was rendered imperatively necessary by Sherman's seizure of the lines terminating at Savannah. The effect of the revocation order on the work in progress was described by the president of the road in a letter to the Secretary of War: In July and August I made a fair beginning and by October we had about 600 hands. General Order No. 77 took off many of our contractors and hands. We still had increased the number of hands to about 400 when Sherman started from Atlanta. The military authorities of Augusta took about 300 of them to fortify that city. These contractors being from Georgia returned with their slaves to their homes after being discharged at Augusta. We still have between 500 and 600 hands at work and are adding to the force every week. The great difficulty has been in getting contractors exempt or definitely detailed since Order No. 77. I have not exceeded eight or nine contractors now detailed. The rest are exempt from other causes or over age. It was against such a background of economic confusion that Magrath wrote to the Governor of North Carolina making a revolutionary proposal. Virtually admitting that the Confederacy had been shattered, and knowing the disposition of those in authority to see only the military aspects of any given situation, he prophesied two things: that the generals would soon attempt to withdraw Lee's army south of Virginia, and that the Virginia troops in that army would refuse to go. "It is natural under the circumstances," said he, "that they would not." He would prepare for this emergency by an agreement among the Southeastern and Gulf States to act together irrespective of Richmond, and would thus weld the military power of these States into "a compact and organized mass."