WAR DEPARTMENT, Washington, August 16, 1863-11. 40 a. m.

Colonel J. W. KEIFER,

Alexandria, Va.:

You will embark your command on transports at Alexandria, for Governor's Island, New York Harbor. On arrival, report to General Canby, commanding.

By order of Major-General Halleck:

J. C. KELTON,

Assistant Adjutant-General.

WAR DEPARTMENT, Washington, August 16, 1863-8. 50 p. m.

Brigadier General THOMAS H. RUGER,

Alexandria, Va.:

You will embark all troops of your command on transports, as soon as furnished by the Quartermaster's Department, for Governor's Island, New York Harbor, where you will report for duty to Brigadier-General Canby.

H. W. HALLECK,

General-in-Chief.

HDQRS. DEPT. OF VIRGINIA AND NORTH CAROLINA, Fort Monroe, Va., August 16, 1863.

Honorable E. M. STANTON,
Secretary of War, Washington, D. C.:

SIR: I have the honor herein to send the report of General Naglee on the subject of the difference in opinion between himself and the civil authorities at Portsmouth and Norfolk. I beg your careful perusal of the paper, and request that instructions be sent me for my guidance in the present case, and in such cases as may arise in the future. The mayor and common council of Portsmouth passed an ordnance taking possession of all property in the city belonging to persons who refused to take the oath of allegiance to the United States and to the new Government of Virginia, assuming the power of confiscation, of collecting rents, &c., the money so collected to be used to supply the wants of destitute families, and to defray the expenses of the city government. This order General Naglee refused to sanction, on the ground that confiscations should be alone made by the military authorities, and on the ground of the order of General Dix permitting the elected civil authorities to exercise their civil functions so far only as it did not interfere with the enforcement of martial law, "which is still continued throughout this military department. "

On lists furnished by the Lieutenant-Governor of the State, at the request of General Naglee, he, General Naglee, issued rations to the destitute families in Norfolk and Portsmouth, and still does so.

The difficulties of reconciling two powers in one town are apparent, and I submit two courses for your consideration:

1. To allow the status of affairs to remain as at present, reserving however, to the military commandant the power of not approving