So, it was standard, per the infantry tactics, that each regiment/battalion equalize the number of men in each company in line for the purposes of maneuver. Where the regiment's strength was so reduced, that ten functional companies (of two platoons each) could not be formed, companies could be consolidated if necessary: in other words the ten companies of the regiment might be formed into a lesser number. For example, by Gettysburg, a number of regiments were incapable of forming a ten company battalion. The 49th Pennsylvania could only form a four company battalion with the officers and men of its ten companies.
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This was not uncommon. The 116th Pennsylvania did the same after Fredericksburg, forming its personnel and remaining officers into a battalion of four companies...
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As mentioned above, the "supernumerary" officers would be sent home for recruiting, or otherwise detailed, etc. Gen. John Beatty, USA noted in late 1862:
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The 7th Maine was so reduced that by 1863 it formed only five companies in line of battle...
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At the time of the battle of Gettysburg, the personnel of only six companies of the regiment were on hand, as the regiment's colonel and four of the skeleton companies were in Maine yet attempting to recruit the regiment.
Nor was the above simply an issue with the volunteer regiments. The regulars did the same...
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Here's an extreme case, where a regiment was so reduced as to form only a single company, attached to another regiment for service...
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By the time of the Battle of Gettysburg, the United States Government, and the Army, had acted to systematically and legally deal with the reduced strength of the volunteer regiments. The number of men in line of battle in the field could fluctuate wildly for a variety of reasons, and their commanders had to act as necessary in forming them; but where the number of men on the rolls dropped below a certain number, laws were enacted to allow for consolidations to be rendered by law of the ten companies of a regiment into a fewer number, under the 19th and 20th Section of the Act of Congress of March 2, 1863;
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In the cases of section 19 consolidations, the supernumerary officers were to be discharged.
In conformity to the above act came Army General Orders no. 86 of April 2, 1863 regarding under-strength regiments...
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An example of that general order in action...
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Also shortly after General Order no. 182 of June 20, 1863 provided for reduced regiments that were not yet at or below 1/2 strength on the rolls requiring action per. G.O. no. 86.
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The US War Department where necessary, would transfer the personnel of the skeleton regiments into another to recruit it by regimental consolidation. This legal consolidation of volunteer regiments was unpopular, as the smaller of the two regiments was essentially disbanded for the purpose. For example the 32nd Maine, which was so understrength, that it was legally disbanded upon its being consolidated with the 31st Maine in December, 1864:
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The legal consolidation of volunteer units, by a combination of two regiments to form a functional one, was terribly unpopular with many of the volunteer soldiers. An extreme case from the time...
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The modes of the Confederate Army were the same, but unlike the USA, did not provide any legal means of consolidating companies or regiments, etc. The regiments as they shrank, forming a smaller number of companies in line of battle. After the Battle of Atlanta, Capt. Hugh Black of the 6th Florida Volunteers wrote his wife that the regiment went into action with ten reasonably sized companies, but afterwards, could only form five small ones at best in forming its battalion in line.
The Confederacy did not allow for the dissolution of volunteer regiments except by expiration of service, so where two regiments were so reduced that they could not function as a battalion, they would be consolidated by simple combination or union into a single battalion line of battle. Like the 8th and 19th Arkansas Regiments (Consolidated). The regiments and their ten companies remained distinct in point of paper organization, but in all regimental functions and forming line of battle, acted as one; the personnel of each regiment generally formed perhaps one wing of the battalion, perhaps four or five companies at best...
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Although evidently Bragg's headquarters didn't agree with the term "consolidation" in these cases, it was generally the term employed in the Confederate army for the union of two (or more) regiments for service as a single battalion.
Here's an example of the 10th South Carolina, consolidated physically into six companies, and then the regiment consolidated with the 19th South Carolina, itself consolidated into four companies...
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As they shrank the number of companies that could be physically formed would too. When the 1st Florida Cavalry (dismounted) and 4th Florida were consolidated in late 1863, the 1st Cavalry could only form two companies... increased to three as sick, stragglers, and exchanged prisoners returned before the Atlanta Campaign.
After the Atlanta campaign, camped at Palmetto, General Hood's army had a general reorganization, with battalions consolidating companies for efficiency, etc. in the upcoming campaign into Tennessee. I recall seeing notice of brigades of the army at that time being consolidated to act in a single battalion formation. The veterans of the 16th Tennessee recall their regiment was consolidated into three small companies by the time of the battle of Franklin...
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A situation which continued into 1865, when many Confederate regiments, even consolidated ones, could only form a single company in line of battle. In the last reorganization of the Army of Tennessee, for example, the six regiments of the Florida Brigade were reorganized into a single small battalion.