Trusting my action may meet the approbation of the Department, I am, most respectfully, your obedient servant,

BENJ. F. BUTLER,

Major-General, Commanding.

Honorable E. M. STANTON,

Secretary of War.

HEADQUARTERS DEPARTMENT OF THE GULF, New Orleans, May 8, 1862.

SIR: I have the honor to report my further operations since my dispatch of the 29th ultimo.

I commenced the disembarkation of my men on May 1, when I took formal possession of New Orleans.

The Twenty-first Indiana was landed at Algiers, a small town on the right bank of the river, opposite New Orleans, at the inner terminus of the New Orleans and Opelousas Railroad. All the rolling stock of the road has been seized, and the road is now running under my direction, only for the purpose of bringing in provisions to the city. That regiment, under Colonel McMillan, on the 5th of May was sent to Brashear, 80 miles (the whole length of the railway), and Berwick Bay, and there captured two brass 6-pounder field guns, with ammunition for the same, some 1,500 pounds of powder, and some other ordnance stores, and dispersed a military organization there forming, captured and brought off two citizens who persisted in insulting our troops.

There are now no Confederate forces on the right or western bank of the Mississippi within possible reaching distance of which I have any intelligence.

The remainder of my troops which I had been able to take with me by means of any transportation which I had, to wit, Thirtieth and Thirty-first Massachusetts, Fourth Wisconsin and Sixth Michigan, Ninth and Twelfth Connecticut, with Manning's and Everett's Fifth and Sixth Massachusetts Batteries, and Holcomb's Second Vermont Battery, and two companies of cavalry, I landed in the city proper, posting and quartering them at the custom-house, city hall, mint, and Lafayette Square. I thought it necessary to make so large a display of force in the city. I found it very turbulent and unruly, completely under the control of the mob; no man no either side daring to act independently for fear of open violence and assassination. On landing we were saluted with cheers for "Jeff. Davis" and "Beauregard." This has been checked, and the last man that was heard to call for cheers for the rebel chief has been sentenced by the provost judge to three months' hard labor at Fort Jackson, which sentence is being executed. No assassinations have been made of any United States soldiers, with the exception of a soldier of the Ninth Connecticut, who had left his camp without orders in the night and was found dead the next morning in an obscure street, having probably been engaged in a drunken brawl.

My officers and myself now walk in any part of the city where occasion calls by day or night, without guard, obstruction, or annoyance. There is, however, here a violent, strong, and unruly mob, that can only be kept under by fear.

On the 5th instant I sent Brigadier-General Phelps, with the Ninth and Twelfth Connecticut and Manning's battery, to take possession of the rebel works on the north side of the city, which run from the river to the marshes of Lake Pontchartrain, about 7 miles above the city. I