Fourth. His chief anxiety is respecting transportation animals. Mules he deems essential as our chief dependence. With the statistics of these in the several States he shows familiarity. Our supply cannot be obtained, he thinks, in Virginia and North Carolina, drained as these States have been all along. Much more [can] be done in the matter in Mississippi and the other States coterminous with Tennessee, as from this latter numbers have been run out into the others. His brother, operating in Mississippi as he is in Virginia, has not the experience in this business, expert as he otherwise it, to get up animals enough in time, nor will those he gets probably furnish any to this army. Hence he deems it important that he be allowed to obtain through certain of his own agents some supply of these animals in Mississippi, &c. this seems to me reasonable under all the circumstances. I mention it for your consideration, that you may, if approving, give the requisite authority.

Fifth. He considers that injury must result to the animals under his charge and to the general service under his direction from the change in the original plans for him, by which North Carolina has been put under other officers. In this I concur with him, for two reasons: (1) Unless he can forage, &c., in that State, the depots of horses near its border cannot be conveniently, if at all, supplied with forage, &c. (2) His judgment, energy, and business qualifications would enable him, I am sure, to have the whole better done, with unity of plan, that will be achieved under different heads, and to some extent adverse administrations. I fear you will not find much accomplished in North Carolina under the separate administration adopted.

Sixth. There is danger of losing much of his zeal, if not his agency altogether, in this work, from the dissatisfaction with which he regard the change in his position. He supposed, he tells me, that he was to be chief in his department, and responsible directly to yourself, having under him the whole operation for the supply of animals in Virginia and North Carolina. This was, he considers, the understanding with which he accepted the charge. He now finds himself placed under the orders of Major Johnston, deprived of half his sphere of action, and expected to meet demands for which his original jurisdiction and his untrammeled energy would not be more than adequate. Of course I do not undertake to decide the merits of the question. I give you the state of the case as in Major Paxton's mind. He is certainly sore. Whether Major Johnston really ranks him I do not know. If he does not, Paxton's subordination to him is in fact a grievance. If he does, P. may still object that his position is not what he agreed to accept, and this he does allege. He wants to have charge of his own department, so that if there be efficiency he may get the credit; if reward at any time, he may not be so far down as to have it appropriated by others. In thus presenting the case I am in part complying with his request.

These particulars, except the last, I have also submitted in a statement to General Lee, without, however, indicating anything respecting the setting off of North Carolina under another head.

I hope among you all we may have such renovation of animals as to enable armies to accomplish all the country needs next campaign.

I am, major, respectfully, your obedient servant,

W. M. PENDLETON,

Brigadier-General and Chief of Artillery.