York under an arrangement between Lieutenant-General Grant and Commissioner Ould. The cotton steamer had been aground for several days - I think more than a week. The officers of our fleet explained to me that she had been run aground in an attempt to pass the obstructions of the harbor in the night time, the rebel being unwilling to disclose their place of agrees by running a boat through by daylight.

On the night of the 5th a strong south wind prevailed and raised the water of the bay sufficiently to float the steamer, and on the 6th she was afloat, with steam up and apparently nothing to prevent her coming out. It was expected she would pass the obstructions on the night of the 6th.

The U. S. transport Atlanta was lying in the lower bay, as she had been for ten days, detained expressly to receive this cotton and convey it to New York.

An officer, Captain F. G. Noyes, assistant commissary of subsistence, had been detailed to accompany the cotton to New York, and had been for ten days on board a vessel of our upper fleet in the bay, waiting for the cotton to come out.

As I understood, both from our own officers and from the rebel commissioner of exchange, nothing had prevented the reception of the cotton and its shipment to New York except the delay in delivering it on the part of the rebels, occasioned by their running their steam-boat aground.

The statement that our officers in Mobile Bay refuse to receive the cotton must be without foundation.

Respectfully,

C. C. DWIGHT,

Colonel and Agent of Exchange.

MILITARY PRISON HOSPITAL,

Camp Morton, Ind., December 29, 1864.

Colonel A. A. STEVENS, Commanding Camp:

COLONEL: I have the honor to report that in consequence of increased sickness among the prisoners of war at this camp additional hospital buildings are required. At present we can accommodate about 240 patients, and nearly 400 men are on daily sick report. As no building has been put up for the accommodation of cases of contagious and infections diseases, such as measles, erysipelas, &c., it will be necessary to build a ward for those cases exclusively. Two additional wards for miscellaneous cases are absolutely needed, and should be put up as soon as possible. The proposed wards should be of the same dimensions as those recently built.

I have the honor to be, very respectfully, your obedient servant,

CHARLES J. KIPP,

Surgeon, U. S. Volunteers, in Camp.

[First indorsement.]

HDQRS. POST, BURNSIDE BARRACKS AND CAMP MORTON,
January 4, 1865.

Approved and respectfully forwarded to Brigadier General H. W. Wessells, Commissary-General of Prisoners, for instructions.

A. A. STEVENS,

Colonel Fifth Regiment Veteran Reserve Corps, Commanding.