SECOND DIVISION.

Gladden: The wharf is nearly completed,a nd pile-driven still engaged in driving obstructions on the front, to prevent boat attacks. All the repairs been finished.

Tilghman: There remains to be done only the leveling of the platforms for the two guns, with a few trifling repairs.

McIntosh: Repairing traverses and raising the parapet on the left flank. Owing to the fact of there being only one steam-boat to do the work of this and the Third Division, the operations on the Bay batteries have been reared fully one-third. The hands get to work late every day, and work frequently stops for want of transportation of material.

THIRD DIVISION.

Blakely: Three batteries completed on fronts, with the exception of platforms and embrasures; the fourth will be in a similar st ate of completion by noon to-day. Platforms laid in two batteries. Clearing continued around entire line. Fifty yards or rifle-pits completed.

Spanish Fort: Work progressing very slowly, in consequence of the small number of hands engaged.

FOURTH DIVISION.

Torpedoes: Ten Singer's torpedoes anchored about 2,000 yards below the point designated in last report, in from 12 to 20 feet of water, the line marked by a stake on the eastern bank Bay Minette and a small towhead on western side. Four Rains' torpedoes continuing the line above described.

The week has been devoted to work on the electric battery.

Respectfully submitted.

V. SHELIHA,

Lieutenant-Colonel and Chief Engineer, District of the Gulf.

CHARLESTON, December 26, 1864.

General S. COOPER,

Adjutant and Inspector General:

General Taylor reports that naval force at Mobile is substantially a part of the local defenses, and that all should be under one head. A conflict exists between land and naval commanders as to a torpedo boat-the former ordering it into active service, the latter refusing to obey. What must be done?

G. T. BEAUREGARD,

General.

[First indorsement.]

DECEMBER 27, 1864.

Respectfully referred to the honorable Secretary of the Navy.

Cannot harmony between the two branches of the service be secured in respect to this boat. If the navy objects to using it, and volunteers from the navy are anxious to test it, may not the liberty be allowed, with a caution to the officers of the previous as experience with similar boats.

J. A. SEDDON,

Secretary of War.