nected with flag-of-truce boats, and mentioned a firm in Washington where the articles could be supplied; also giving me a list of them.

No doubt many other violations could be discovered if ordinary watchfulness were instituted. I write the above in order, if the Department desires, to take some action to prevent the same. I have had charge of flag-of-truce boats during the past two weeks, and return to Aiken's Landing to-morrow morning, and if any new evidence comes to my notice the same will be promptly made known to you. I return to Washington on the 20th instant.

I am, very respectfully, your obedient servant,

B. W. SHENK,

Major, One hundred and thirty-fifth Pa. Vols., Commanding

NAVY DEPARTMENT,

October 16, 1862.

Honorable E. M. STANTON,

Secretary of War:

SIR: Admiral Lee, commanding the North Atlantic Blockading Squadron, informs the Department that considerable quantities of merchandise are carried in the mail steamers which pass daily between Fortress Monroe and Baltimore and between Fortress Monroe and Norfolk. Unless some measures are adopted to prevent it the practice will lead to difficulty, for while the blockade continues Admiral Lee has no alternative but to enforce it in good faith. He suggests that -

It would be a partial remedy if the War Department would order Generals Wool and Dix not to allow any merchandise or articles for traffic to be shipped on these mail steamers plying between Fortress Monroe and Norfolk and between Fortress Monroe and Baltimore; it would be an effectual remedy and a more natural state of things if these steamboats were under navy control.

I would respectfully recommend that the recommendations of Admiral Lee in regard to orders to Generals Wool and Dix be given by the War Department.

Very respectfully,

GIDEON WELLES,

Secretary of the Navy.

WAR DEPARTMENT,

Washington City, D. C., October 17, 1862.

Honorable GIDEON WELLES,

Secretary of the Navy:

SIR: The Secretary of War directs me to acknowledge the receipt of your communication of the 16th instant relative to the report of Admiral Lee, commanding the North Atlantic Blockading Squadron, that merchandise is daily transported in the mail steamers between Fortress Monroe and Baltimore and between Fortress Monroe and Norfolk, and suggesting orders for a more stringent enforcement of the blockade. In reply I am instructed to inform you that copies of your communication have been transmitted to Major-Generals Dix and Wool for their information.

I have the honor to be, your obedient servant,

P. H. WATSON,

Assistant Secretary of War.