I also suggest the propriety of transferring this flotilla on the 30th of June, at the expiration of the fiscal year, to the Navy Department.

The flotilla was built up under a demand from the ten commanding general of the Army, Lieutenant-General Scott, for such vessels to co-operate with the army in its descent of the Mississippi. The vessels have been constructed by the Quartermaster's Department, but the service is more naval than land service, and the commanding officers are all Navy officers and most of the men are sailors. Much of the ordnance and ordnance stores have been supplies by the Navy Department.

Some embarrassment and confusion, though no want of harmony, has resulted from the mixed nature of the service; and I think that it would conduce to economy and efficiency to make the whole fleet a part of the naval establishment of the United States.

The Navy Department is now constructing other gun-boats for service on these rivers, and it will doubtless be necessary for some time after the suppression of the active rebellion to keep some of these vessels in service as a river patrol.

I inclose an estimate in tabular form.

M. C. MEIGS,

Quartermaster-General.

[Inclosure.]

Estimate for deficiency in appropriation for gun-boats on the Western waters for the year ending June 30, 1862.

To pay off all liabilities for the gun-boat fleet

proper to the 30th of June, 1862.................... $400,000

For liabilities to June 30, 1862, for purchase,

construction, and maintenance of steam rams......... 400,000

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800,000

Estimate for an appropriation for the gun-boat service for the year ending June 30, 1863, and for the maintenance of the fleet of steam rams for three months, to wit:

For the maintenance of gun-boat fleet proper during

the fiscal year ending June 30, 1863, twelve months,

at $180,000 per month................................ $2,160,000

For maintenance of fleet of steam rams for three

months, viz, to September 30, 1862, at $60,000 per

month................................................ 180,000

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2,340,000

Respectfully submitted.

M. C. MEIGS,

Quartermaster-General.

MAY 23, 1862.

Numbers 9. WAR DEPARTMENT, Washington, July 12, 1862.

Major SIBLEY,

Quartermaster's Department:

DEAR SIR: In making settlements with railroad companies for transportation of troops and supplies please observe the following as a several basis:

Per passenger per mile, 2 cents for distance moved.

Equipments, munitions, and supplies, accompanying regiments, first-class local rates, which will average about as follows:

Thirty miles or less, 10 cents per 100 pounds; 50 miles, 15 cents per 100 pounds; 100 miles, 25 cents per 100 pounds; 150 miles, 40 cents per 100 pounds; 200 miles, 50 cents per 100 pounds; 300 miles, 75 cents