in Mr. Henerey's establishment, the detail to take effect January 1, 1864.

I also on yesterday addressed a communication to Major C. D. Melton, commanding conscripts, applying for the detail of 15 men now in the employ of Mr. W. S. Henerey, the detail to take effect January 1, 1864.

I have prepared the working drawings for the boats and on yesterday made out an estimate for lumber, which I am assured by Major W. H. Echols, chief engineer, South Carolina, will be forwarded to me as rapidly as possible. I have made arrangements with a thoroughly capable boat-builder to construct the vessels properly, and will forward the names of his employes for detail as soon as I can ascertain their companies and regiments.

I am, further, preparing an estimate of all the necessary materials for engines, boilers, shafting, plating, &c., stating what may be procured here and what must be obtained elsewhere.

The Secretary of War has assured me every assistance in his power in procuring men and means ot enable me to press the work to completion.

General Beauregard's constant endeavor during the last eighteen months to bring the whole subject to the favorable consideration of the Government is the best indication of the deep interest he feel,s and I a confident of his official aid and sanction.

I have now made every preliminary arrangement in my power, and only wait the men and means which, if obtained, will enable me to prosecute the work with dispatch.

I have the honor to be, colonel, very respectfully, your obedient servant,

FRANCIS D. LEE,

Captain of Engineers.

[Indorsement.]

OFFICE OF CHIEF ENGINEER, Charleston, S. C., December 23, 1863.

Respectfully forwarded, for the information of the commanding general.

D. B. HARRIS,

Colonel, and Chief Engineer of Department.

HDQRS. DEPT. SOUTH CAROLINA, GEORGIA, AND FLORIDA, Charleston, S. C., December 27, 1863.

Respectfully referred to Colonel Waddy, who will confer at once with the commanding officer of the arsenal, to determine if the application of Captain Lee for the exclusive use of Henerey's establishment can be granted without material prejudice to the ordnance branch of the service. I strongly favor the application of Captain Lee.

G. T. BEAUREGARD,
General, Commanding.

HEADQUARTERS ORDNANCE DEPARTMENT, Charleston, December 28, 1863.

Respectfully referred to Major N. R. Chambliss, commanding Charleston Arsenal, for his remarks

J. R. WADDY,

Lieutenant-Colonel, and Chief Ordnance Officer.