Cumberland Gap, and also Burnside Point, and at that point not required for present use should be ordered back to Camp Nelson, and thence forwarded to this point via Lebanon.

The twelve months' means raised in Kentucky on the call for 20,000 are a disorganized, unavailable band of soldiers strongly in sympathy with a growing class of open and avowed resistant to any enroll mounted-that is, one or two or more companies in a regiment, making in the aggregate about 3,000 horses. The nature of the service in connection with their location along the line of the railroad does not require this expensive outfit. The horses are used for pleasure and display, and are fast being destroyed by neglect and bad usage. I would respectfully suggest that these twelve months;' men be all dismounted and the horses made available for mounting active cavalry for military proposes.

I have also to state that I spend nearly four days at Camp Nelson examination accounts of Captain T. E. Hall, assistant quartermaster, at that post. In order more readily to investigate the character of the expenditures and also the integrity with his duties have been performed, I took with me Captain Grant, acting assistant inspector-general of the District of Kentucky, who had made a report to these headquarters, implying a want of purity in the administration of Captain Hall, giving Captain Grant a full opportunity of bringing before me any person who could make my investigation easy by pointing to fact and directing my research. After a careful and close examination, bringing Captain Hall's accounts down to the 10th March, I can only report that so far as investigation could satisfy me, with my very limited powers of commanding testimony, I could see nothing but exact rectitude. Parties that Captain Grant instances as knowing circumstances impeaching Captain Hall's honesty were examination by me and sworn, and they were some of the most loyal, influential men in the country, but they all to a man assured me that no man had worked more earnestly for the good and economy of the Government than Captain Hall in the execution of his varied duties.

That excesses unnecessary, outrageous, without judgment, without military purpose, short-sighted, and without the evidence of experience, have been incurred at Camp Nelson cannot be disguised, but in my judgment they are all traceable to the officer in command, who assumed to direct, and is therefore amenable for the unnecessary outlay at this point.

I am, general, very respectfully, your obedient servant,

JAB. H. STOKES,

Lieutenant Colonel and Inspector Mil. Div. of the Mississippi.

INDIANAPOLIS, March 15, 1864.

Lieutenant-General GRANT:

I transferred six regiments of infantry to General Hovey yesterday, which will leave here the moment transportation can be furnished. I have five regiments of cavalry waiting for horses.

O. P. MORTON,

Governor of Indiana.