CITY POINT, VA, July 14, 1864.

Major-General BUTLER, Commanding, &c.:

I have directed such of the rebel works around Petersburg as are in our rear and not used of us to be leveled. General Weitzel being unwell I have directed General Meade to send his engineer officer to designate those in rear of the Eighteenth Corps to be leveled and General Martindale to have them so leveled.

U. S. GRANT,

Lieutenant-General.

CITY POINT, VA., July 14, 1864

Major-General BUTLER, Commanding, &c.:

I shall have an effort made by the 16th to cut the railroads again,this time far to the south. Please direct Kautz to report to Sheridan in person to-morrow for directions, and to accompany the expedition with all of his force that can be spared. Sheridan has or will receive instructions by morning.

U. S. GRANT,

Lieutenant-General

HDQRS. DEPT. OF VIRGINIA AND NORTH CAROLINA,

In the Field, Va., July 14, 1864

Lieutenant General U. S. GRANT,

Commanding Armies of the United States:

GENERAL: Assuming that this position in the peninsula of Bermuda Hundred will not be abandoned, at least during the war, whatever may be the necessities of operations or the results of movements elsewhere, and specially in view of operations on the south side of Richmond, I take leave to suggest to the commanding general the propriety of constructing a railroad from the landing at Bermuda Hundred to our front. The route is very practicable and I will have it run out. Whenever we advance the road can be easily carried forward and make a junction with the Petersburg road. There is iron enough for the purpose at Norfolk and Fortress Monroe, and while we are remaining here the road might be easily built by a force detailed from the 100-days' men, the timber for ties being directly along the road. I observe that owing to the contraction of space for wharf room at City Point between the ravine and the Appomattox it is impossible to get wharfage enough there to land all the supplies, so that large sums are being expended for demurrage, although the vessels lie six or seven deep along the whole extent of wharf. The wharves at Bermuda Hundred need not be more than fifty feet in width to get the deepest water, and the entire expense of putting them in order and constructing the railroad to the United States would be saved by one week's necessary demurrage, as it exists at present. Of course in this I mean no criticism upon General Ingalls, who seems to be doing the best he can in the space he occupies. I am aware of the cost of labor for loading and unloading stores from vessels, but as we advance I trust we shall be able to obtain that labor at a cheap rate. We should have had a surplus of it here if Kautz's and Wilson's return had not been interrupted with the negroes they were bringing in with them. It is quite possible that hereafter at some central point it may be necessary to make a depot for the recruitment and discipline of negro troops in the necessity of garrisoning the