The command was afterward transferred to Captain [now Admiral] Foote, of the Navy, whose energy, gallantry, and skill have been conspicuous in the organization, construction, and command of the fleet. At Forts Henry and Donelson, at Island No. 10, at Memphis, and at Vicksburg, this fleet, under his command and that of his successor, Commander [now Acting Rear-Admiral] C. H. Davis, has rendered valuable service.

The organization was mixed. The commanding officers of the gunboats and portions of the crews were furnished by the Navy; other portions of the crews were detailed from the volunteer army; and the commanders and officers of the transports and of some other vessels were employed by the Quartermaster's Department. The organization worked harmoniously and effectively, however, and the services of the fleet are recognized and acknowledged by the Government and by the country.

The greater part of the vessels were built and paid for by the Quartermaster's Department; part of the armament and ordnance were furnished by the Ordnance Department of the Army; but a large portion of the guns and ammunition were supplied by the Navy Department. Some of the vessels were captured by the fleet, and, being fitted out by the Quartermaster's Department, were added to its strength.

The appropriations for the gun-boat fleet during the fiscal year ending the 30th June were $2,400,000.

STEAM-RAMS.

As an aid to the gun-boat fleet, at a time when it was ascertained that the fleet of armored gun-boats in possession of the rebels below Island No. 10 was formidable, you directed the purchase of a number of steamers to be converted into steam-rams. Five stern-wheel and four side-wheel steamers were selected by Colonel Charles Ellet, the late distinguished civil engineer, appointed a colonel of volunteers, and with the aid of committees of the boards of trade of the Western cities, and under the superintendence of Colonel Ellet and of officers appointed for the purpose, they were fitted for service with great dispatch.

Colonel Ellet, who had thought and published much upon the use of the momentum of powerful steamers, properly fitted, as a means of destruction, was by you assigned to the command of this fleet, and, in conjunction with the fleet of gun-boats, he did most gallant and effective service in the defeat and destruction of almost the entire rebel fleet off Memphis. He received a wound in this action from the effects of which he never recovered; and, being attacked by disease while still weakened by his wound, he sealed his devotion to his country with his life.

The principal navigable rivers of the Western States above Vicksburg have been rescued from the control of the rebels, and the greater part of the hostile fleet has been destroyed or captured. It is understood, however, that in the rivers of Mississippi and Arkansas there still remain, protected by low water, a number of steamers, some of which have been fitted for offense, and which will require the attention of the gun-boat fleet when the waters rise.

Congress by the law of July 16, 1862, chapter clxxxv, directed the gun-boat fleet to be transferred to the Navy Department, which transfer has been made.