will be run economically. The party of the Navy will regulate her pay roll. Officers and men being regularly enlisted, they cannot expect or demand the high-price wages given by the merchant marine.

I would here remark, colonel, that the C. S. Army has one energetic man and thorough seaman now in her service in this State; I allude to Lieutenant Harby, now stationed at Harrisburg. Should the C. s. Army accept the boat, to be used for the good of the country, I would advise that lieutenant Harby be transferred to the steamer either as commandant or second in command, whichever position he may prefer. The compensation for the use of the boat can at some further time be arranged between the Military Board of the State of Texas and the C. S. Army. The great desire of the State is to have the vessel put in immediate service, and such service to be effectual must be authorized and commanded by the Confederate States. Rumors are already afloat that the enemy have been up the bay as far as Half Moon, which is midway from Galveston to Red Fish Bar. The boat cannot be at work too soon. It is absolutely necessary that the enemy be prevented from making sounding up to Red Fish or beyond.

I am, sir, with great respect, your obedient servant,

H. S. LUBBOCK,

Agent State of Texas and Captain of Steamer Bayou City.

[Inclosure No. 2.]

HEADQUARTERS SUB-MILITARY DISTRICT OF HOUSTON,
Houston, Tex., October 15, 1862.

Captain H. S. LUBBOCK,

Commanding Steamer Bayou City, Houston, Tex.:

CAPTAIN: Your communication of the 15th instant is at hand. I shall endeavor to organize a naval force to protect the estuaries above Red Fish Bar. I will request Major Massie, provost-marshal, to place his guard vessels in service in that portion of our waters for the purposes mentioned in your communication.

Being a subordinate officer, subject to the orders of General P. O. Hebert, I cannot make a final contract for chartering the steamer Bayou City, the services of which are much needed for protection at home and from abroad; but if you can, without contravening the orders received by you from the Executive of the State, place your steamer in service to cruise over Red Fish Bar, I shall apply immediately to General Hebert for authority to charter her on such terms as may be satisfactory to the Confederate States and the State of Texas.

Please accept my heartfelt thanks for services already rendered, and the expression of the high esteem and condescension of your obedient servant,

X. B. DEBRAY,

Colonel, Comdg. Sub-Military District of Houston, Tex.

[Inclosure No. 3.]

HEADQUARTERS SUB-MILITARY DISTRICT OF HOUSTON,
Houston, Tex., October 15, 1862.

Captain W. M. LUBBOCK,

In Charge of Obstructions in San Jacinto:

SIR: I understand that there are many persons engaged in fitting out and repairing vessels on the San Jacinto. You are authorized to use the services of persons so employed for fair compensation for their labor,