OFFICE OF CHIEF QUARTERMASTER,

Richmond, Va., May 13, 1865.

Major General E. O. C. ORD,

Commanding Department of Virginia, Richmond, Va.:

GENERAL: I respectfully submit for your consideration the following statement with reference to the James River and Kanawha Canal Company. This canal is now in partial operation, it being open and navigable for sixty-five miles from this city to Lock No. 17, beyond which point it has been much injured by General Sheridan's command during the late campaign. The extreme length of the canal is about 216 miles, penetrating the interior of the State and passing through a country rich in agricultural and mineral productions. It is of the greatest importance that the company re-establish its route as it will be the means of giving employment to a large number of persons who are now idle and subsisting at Government expense, and put in active operation many if not all the mills in Richmond, and on the re-opening, of this channel for trade a large quantity of tobacco and other supplies now stored at Lynchburg and vicinity could be sent to market. The company are anxious to resume operations, and, so effect this desirable object, I would respectfully suggest that the Government furnish aid for repairing the canal, as the company is left, like most others, without available means to reinstate navigation. In order to do this it would probably require, at a rough estimate, the labor of 1,000 men for one month, or at that ratio, with competent engineers to oversee the works.

I would also recommend the turning over to the company all canal-boats formerly the property of the rebel government not required for Government service, to be used by the company for the purpose of bringing forward produce, &c., it being understood that the authorities have a claim on the company for the boats and to be reimbursed for their use. All rights and privileges formerly enjoyed by the company I think should also be granted them, provided they do not come in conflict with any Government rules and regulations. It is desirable that the work of repairing should be entered into at once and completed so that navigation could be resumed before the 1st of July next, as it is important that the company should have the transporting of the approaching harvest, thereby deriving a revenue for its maintenance and payment of Government claims, as well as affording relief to the inhabitants of the region through which the canal passes, and carrying return supplies for the interior, as the country is destitute of all such that is not derived from its own soil. The canal when opened will connect at Lynchburg with the Virginia and Tennessee Railroad, which road extends directly to Memphis, Tenn. This road runs through the richest and most productive portion of Virginia, and I am credibly informed that a large amount of supplies are now awaiting the opening of this route to be sent forward. I would respectfully suggest that the requisite labor, with rations, tents, implements, and a guard sufficient for their military control, be furnished by the military authorities; that an account be kept of the expense attending the furnishing of the men and articles and the same to be charged against the company; that the company on its part keep an account of all charges against the Government for tolls on dock and canal, and that three months after the completion of repairs and re-opening of the entire navigation the account shall be settled, and if he balance be found against the company such balance shall be paid, or such part thereof as the company may be unable to pay then shall constitute a lien upon the revenues of