ing officer, for the agent of all these upper bands left some weeks ago. This system of issuing annuity goods in one grand humbug. The annuities sent are so very small that it is impossible for every one of the nation to get a share, without they are issued at the rate of spoonsful of sugar, and strips of cloth one inch wide per man. The strongest and boldest of the bands, and often the worst Indians, get the largest share. This breeds dissatisfaction. The agent come sup the river with the goods on some boat, and if he don't find the Indians present to receive their annuities he returns in the boat leaving the stores in charge of the fort, to be issued or not, as may seem best, and liable to be stolen. It cannot be expected of the Indians that they will leave their hunting grounds and bring their families to some fort, where there is no game to starve while waiting to receive a spoonful of sugar, or a few beads, and part of a blanket per head, and maybe have to wait for weeks and weeks at one of the forts the arrival of the forts the arrival of their agent with the goods, who must return in the boat that brought him up, or be obliged to remain up in the country until next year. It would be better to do away with this annuity business altogether, as the Indians cal lit paying them to be good, or if it is considered necessary to make a tribe a present left it be on their good conduct, and when ordered by the President, or let the goods remain for several years to accumulate to a respectable amount, and send them under charge of some honest man, who would remain an see that the Indians got them. I here parted with my emigrant train, but not until they had succeeded in giving me further cause not to forget them. Quite a number of horses, mules, and oxen turned up missing. At first it was supposed they had strayed away in the thick timber; a large number of pistols and other arms and property were also reported to me missing, and several deserters. I therefore sent a force after the Idaho gentlemen; the overtook part of it, for it was scattered all over the country. Twenty Indians could have captured them in detail. The part of the train my troops overtook was composed of the better class of citizens; they only had nine oxen, six horses, and a few rifles. They acknowledged that a party ahead had a very large amount of arms that they had purchased from soldiers for whiskey, but as they had good animals, stolen ours, they were some twenty miles ahead; with them were the deserters. These gentlemen expressed great regret that they should be associated with such scoundrels, yet they did not give me information by which I might have caught these men. I suppose they did not think it of importance. The fort is an old, dilapidated affair, almost falling to pieces. I have here deposited the stores I intended for the post up the Yellowstone, under charge of Company I, Thirtieth Wisconsin. This command will remain here this winter to guard the stores. I look upon the position at the mouth of the Yellowstone as a very important one as a depot of supplies.

Fort Union is too far above the mouth of the Yellowstone, and frequently inaccessible. I therefore made a military reservation about four miles square at and below the mouth of the Yellowstone River, taking in all the heaviest bodies of timber.

The two boats start below in a day or so with the sick and wounded. As soon as I load up my train I will start for Fort Berthold.

With much respect, your obedient servant,

ALF. SULLY,

Brigadier-General.

ASSISTANT ADJUTANT-GENERAL, DEPT. OF THE NORTHWEST.