operate to-morrow night. I inclose a note written by me to Commodore Farrand some weeks ago. From the tenor of a letter of the honorable Secretary of the Navy to Commodore Farrand, I regret to perceive the impression has been made on his mind that a cordial desire to co-operate with each other may not exist here between the naval commanders and the district commander. Our relations have always been pleasant and our intercourse free, and I shall not permit any private feelings to interfere with the business before us. When I find the commodore disagrees with my views of what is required I shall refer the matter to higher authority.

I am, general, your obedient servant,

DABNEY H. MAURY,

Major-General, Commanding.

[Indorsement.]

ADJUTANT AND INSPECTOR GENERAL'S OFFICE, February 18, 1865.

Respectfully submitted to the Secretary of War.

The person complained of the in the within communication, John P. Halligan, was exempted January 26, 1864, upon recommendation of the Secretary of the Navy and by direction of the President, until July 1, 1864, to construct a submarine torpedo-boat. The exemption was at the expiration of said time extended while the boat should be bona fide engaged in operating against the enemy. General Maury represents Halligan as having prolonged the completion of his work with no object in view save to evade military duty. Every facility was afforded him to complete his work; he failed to avail himself of any of them. Upon application of General Maury he was removed, when he carried off several essential parts of the machinery. After some search these were recovered.

H. L. CLAY,

Assistant Adjutant-General.

[Inclosure.]

HEADQUARTERS DISTRICT OF THE GULF, Mobile, Ala., December 5, 1864.

Commodore E. FARRAND,
Commanding, &c.:

COMMODORE: Every opportunity and facility having been afforded Mr. Halligan to enable him to use his boat against the enemy, and he evidently not being a proper man to conduct such an enterprise, please order a suitable officer of your command to take charge of the Saint Patrick at once, and attack without unnecessary delay. I am not willing Halligan should be intrusted with any such business. He may go on the boat with the officer you will appoint to command it; and I presume the pecuniary reward granted by law on account of destruction of enemy's vessels will be secured for Mr. Halligan in case of the successful use of his invention. Pray inform me at once of your decision in the premises, as several officers of my immediate command are urgent applicants for the service we have so long been endeavoring to have accomplished.

Very respectfully, yours,

D. H. MAURY,

Major-General, Commanding.