CAIRO, ILL., May 12, 1864.

Honorable E. M. STANTON,

Secretary of War:

I have the honor to report that the necessary arrangements have been made for the prompt transmission of dispatches between this department and the force in the Trans-Mississippi Department. A competent cipher operator accompanies the general. Captain Fuller, of Memphis, has gone down, the river with General Canby to station careful men at different points to forward dispatches by the most expeditious route. Captain Fuller will return here and give his personal attention to the business. General Canby expressed his satisfaction with the arrangement. All items of interest received at this point will be forwarded to you in advance of other parties. If no further orders for me at this I desire your permission to return to my post.

Respectfully,

ANSON STAGER,

Colonel and Superintendent U. S. Military Telegraph.

CAIRO, ILL., May 12, 1864.

(Received 4 p. m.)

Honorable EDWIN M. STANTON, Secretary of War:

Staemer Kennet arrived this morning from New Orleans. Newspaper correspondent at Natchez, under date of May 5, says steamers which left Alexandria Monday, May 2, report no fighting of consequence up to that date. Small Confederate force had appeared on north side river, firing into our troops. The contemplated dam at galls, it is now believed, will not be built. Gun-boats will have to wait for rise in stream. A rebel battery made its appearance at Fort De Russy and sunk steamer Emma. Rebels burned large quantity cotton. Admiral Porter's flag-ship is at mouth of Red River. Re-enforcements are passing up to Alexandria. Nothing else of interest.

A. STAGER.

WASHINGTON, D. C., May 12, 1864-12.30 p. m.

Major-General CANBY, Cairo:

Dispatch just received from General Steele, dated Little Rock, May 4. A large number of wagons and animals were destroyed in his retreat, and his main want now is transportation. He thinks the Washita River is best line for future operations against the rebels in Louisiana and Southern Arkansas.

H. W. HALLECK,

Major-General and Chief of Staff.

HDQRS. DIVISION OF WEST MISSISSIPPI,
Memphis, May 12, 1864.

Major General H. W. HALLECK,

Chief of Staff:

I have been able to learn nothing late or definite of General Steele's command since leaving Cairo, but shall touch at Helena and the mouth of Red River, in the hope of getting news of him. Arrange