matured sufficiently for that purpose, or else exposed to the weather on the banks the Ohio until it became in the condition indicated. The depots at Louisville and Cincinnati, from which it was forwarded, were promptly notified of the condition of this grain. Boards of survey and special inspectors have acted on it, and upon whomsoever else the responsibility for its loss may fall, it cannot upon my forage officer here, Captain George B. Hibbard, assistant quartermaster. We have had to unpack and ventilate and reclean and work the grain over, day after day, and though by this means we have succeeded in saving a large portion of it, there will yet be a loss to the Government of some 7,000 sacks, which, after due inspection and condemnation, I have ordered sold at public auction as provided by the regulations. General Allen, at Louisville, has had an officer investigating the facts in the case, and I have no doubt he will have the matter adjusted as equitably as may be. One thing is certain, if extraordinary steps had not been taken to unpack and work this grain over a large amount would have been lost; as it is the loss is trifling compared with the amount on hand-350,000 sacks at this date. The grain now coming forward is of good quality. (6) In the matter of animals, early in the month I called on Louisville for 1,500 artillery horses and 4,000 mules, believing that this number, in addition to what I expected to purchase here-about perhaps 500 horses and 1,000 mules--would be sufficient for the current wants of the department. I requested that this number be furnished me by the 1st or 5th of April at the furthest, and even then I would have no time to spare in forwarding them to the front. Up to date I have received including my own purchases here, of which I have to-day on hand about 1,000 artillery horses and 2,000 mules. The balance I have pushed forward to Chattanooga and Knoxville as rapidly as possible, except what was required for current use and issue here. Of those now on hand 1,000 to-morrow; but as yet I am unable to procure the necessary details for guards, as already reported to you this day. Hereafter I shall take steps to organize an armed guard of my own, and thus render the department independent of such details. After equipping the army I shall endeavor to keep a surplus on hand for the summer, of about 500 artillery horses and say about 2,000 mules, which I suppose will prove sufficient for the exigencies of the campaign, unless there is an increase of our effective force in the field, when my estimates will be increased proportionably. (7) Our railroads, I am happy to report, have all again been restored to full working condition, both to the front and rear, and the line in East Tennessee is being pushed ahead, even in advance of the infantry there. They have proved invaluable in the recent transfer of the Fourth Army Corps--troops, artillery, equipage, animals, wagons complete-from Huntsville, Ala., to East Tennessee, some 200 miles. The whole transfer, though somewhat tardy as I thought at the time, yet occupied only about twenty days, and would not have occupied one-half of that time, had it not been for the want of side-track, water-tanks, wood, &c., on the line of Chattanooga and Knoxville road . This want is now being supplied by a construction corps of some 2,000 men at work in the region and will soon be wholly obviated. (8) In accordance with your instructions, I have again established the post at Johnsonville, but putting up only such slight store-houses as may be actually required there. I have also made arrangements to raise the wrecks of the transports, barges, &c., destroyed there last fall, and expect by raising them to recover a