HDQRS. ENGINEERS, DEPT. OF N. C. AND SOUTHERN, VA., July 12, 1864.

Major General D. H. HILL,
Inspector-General of Trenches:

GENERAL: I have the honor to submit to you the following report of the work in progress and to be done on lines. At Pegram's battery, the right of Major-General Johnson's lines, the work has nearly [so far as ordered] been completed; that to be done consists in finishing the second rear line, and running out listening galleries to front of works. The former of these works is now being done by General Gracie, and the latter by Captain H. T. Douglas, engineer troops. The work on the rest of General Johnson's front is confined to such improvements as are specified in General Orders, No. 16, section VII, department headquarters, and to which the attention of the major-general commanding has been called. On the line occupied by Major-General Hoke, Colquitt's salient has, as the most critical point, received most attention. At this point, as at Battery Pegram, rear lines are being constructed across both salient angles. Great difficulties have been encountered at this point during the progress of the work, owing to the constant firing of the enemy on the working parties, which accounts for the little progress made. A rear position for the guns in this salient has also been made, and was just ready when the order to remove the guns was countermanded by General Beauregard. Two galleries, six feet below the surface, for the purpose of listening to and counteracting any mining operations of the enemy, have been commenced at this point and are being carried on by Captain Douglas, of the engineer troops. The rest of General Hoke's line, with the exception of the battery at City Point road and what little work is necessary to make it, conforms to general orders from department headquarters alluded to above, and to which attention has been called. The battery at City Point [road] is now being arranged for an embrasure to cover the ground between Harris' house and the salient. A compass survey is now being made of the whole line, a map of which will probably be ready to-morrow.

I am, general, very respectfully, your obedient servant,

W. H. STEVENS,

Colonel and Acting Chief Engineer.

WILMINGTON, N. C., July 12, 1864.

General BAKER,

Commanding Kinston:

GENERAL: The enemy are reported to have crossed the White Oak above Swansborough day before yesterday. Colonel Armistead, with reserves, is ordered to Goldsborough. I think I ought to have some of them at Kenansville. Can send no troops there from this place, having sent troops to Charleston. Beazley's cavalry have gone to Jacksonville.

W. H. C. WHITTING,

Major-General.