subject to military supervision and control, except that part now in possession of and worked by the Government. Should you deem it best that this portion of the road should be placed in the hands of the company, you will direct that all stock, whether held by the United States by the title of capture, or subsequently placed on the road, be received for by the company at its actual valuation, to be charged against any service that may hereafter be rendered by the company in the transportation of U. S. troops or supplies. In this case it is to be understood that the company is simply put in possession as keeper on the part of the United States, and that no interest, direct or indirect, on the part of the Government is waived or in any degree impaired by this transfer.

I have the honor to be, very respectfully,

C. H. DYEAR,

Captain and Assistant Adjutant-General.

HEADQUARTERS SOUTHERN DIVISION OF LOUISIANA,
New Orleans, May 15 [16], 1865.

ASSISTANT ADJUTANT-GENERAL, DEPARTMENT OF THE GULF:

I have the honor to acknowledge the receipt of your letter of yesterday. From the tenor of your letter I understand it to allude specially to the posts and troops east of the Mississippi and within my command. Supposing hostilities have ceased east of the Mississippi, I recommend the following evacuations and reductions immediately: All troops between Bayou Manchac and Camp Parapet to be withdrawn except a company of cavalry to be retained at the telegraph station opposite Plaquemine, and a company of cavalry at the telegraph station opposite Donaldsonville to secure those stations against any scattering guerrilla parties and to have a general eye to the police of the coast. The positions of Bonnet Carre Bend and Pass Manchac to be evacuated and ordnance withdrawn, except perhaps for the present an infantry picket to be left at Pass Manchac for railroad police purposes. The fortifications and armament at Campt Parapet to remain until the last vestige of the rebellion expires, and that camp to be continued as a depot for troops withdrawn from other points and awaiting orders or discharge. Forts Pike, Macomb, Jackson, and Saint Philip to remain with their present garrisons until the rebellion is brought to a final close. Battery Bienvenue, a mere appendage to Fort Macomb, should be evacuated as soon as sit is considered proper for the picket stations on the lakes to be withdrawn. This depends upon the military orders now prohibiting the passage of goods and trade across the lake, The present garrisons of the above forts are now as follows: Fort Saint Philip, three companies; Fort Jackson, three companies. As to the posts on the western side of the river, no reduction can be recommended at present. But as soon as hostilities have completely ceased, I know of no pint on the river on that side that need be held. All the troops in the La Fourche District could then be withdrawn except, perhaps, the fortification of Brashear, which I would recommend held wison for some time.

Very respectfully, your obedient servant,

T. W. SHERMAN,

Brigadier-General, Commanding.