The service, however, has been performed so zealously and satisfactorily by the railroads of the loyal States that it has not become necessary since the passage of the law actually to put this military authority into exercise over any road not within the limits of an insurgent State.

WATER TRANSPORTATION.

The numerous and important expeditions which have been undertaken by the Government during the fiscal year have made heavy demands upon the funds of the department.

The expedition under command of General Sherman to the coast of South Carolina, Georgia, and Florida, which resulted in the capture of Port Royal and of the greater part of the southeastern coast; the expedition of General Burnside to the North Carolina sounds; that of General Butler to Ship Island and New Orleans; and last and greatest, that of General McClellan, which transferred an army of 120,000 men, with all its material of war, its artillery, cavalry, ammunition, and baggage, with their trains, from the lines in front of Washington to the lower Chesapeake, are among the most remarkable in history for the rapidity and completeness with which they were organized, and the success and freedom from accident or misfortune with which they were conveyed to their destinations. With all these expeditionary corps serving at a distance from their bases of operations, having no communication with the Government at home except by sea, it has been necessary to keep up a costly transport fleet.

The army on the peninsula between the York and r six months in such condition that it was decided to be improper to withdraw the transports, and they were retained at heavy cost, until, after its reverses before Richmond, it was withdrawn and transferred again to the lines in front of Washington. This operation was performed with speed and success.

The success of these movements gives striking evidence of the greatness of the military resources of the nation. Dureveral armies have been operating in a hostile country, supplied entirely from our Northern sea-ports with provisions, forage, ammunition, clothing, and all the necessaries of an army in the field, there has scarce been a moment when ample supplies of every article needed for man or beast have not been within reach of the officers charged with their distribution.

The transportation of troops along the Eastern and Southern coast and upon the Potomac and James and York Rivers has been much more costly than upon the Western waters.

The powerful steamers fitted to withstand the storms of the Atlantic, consuming large quantities of fuel and constructed at great cost, have demanded and received very large prices for their services. They have generally been chartered for a certain limited period, with the right to keep them as long as needed by the Government. In the expectation of a short term of service the charters were high, in order to cover the expenses of outfit and insurance and damage done by the troops to their costly fittings. The military necessities have very generally, as in the case of the expedition to the peninsula, compelled the department to retain them in service far beyond the time at first intended.

The requisitions for transportation have always been urgent. Instant military necessities admit of no delay, and a few days or weeks only