fiscal year ending June 30, 1863, being at the rate of about 3,300 per diem. These messages have varied in length from 10 to 1,000 words, and upward, and generally were of an urgent or most

important character.

All business of an important or confidential nature has been transacted in cipher, and the contents of the telegrams thus transmitted have been known only to the War Department or general officers with whom they originated and the sworn cipher operators. This mode o secrecy has been invaluable to the Government and of great advantage to military operations.

The operations in the service of the U. S. military telegraph, as a general rule, have manifested a spirit of patriotism and devotion to their duty in the highest degree commendable. They are not bound by any military regulations or organizations, yet they have undergone all the exposure, the dangers and privations of camp life with a degree of endurance and forbearance worthy of mention. They have been on duty night and day, and, of all the many important trusts and positions bestowed upon them, there is yet to recorded the first case of recreancy to the ask confided to them.

the amount of pay generally received by these persons is not considered a fair remuneration for the service performed. Instances of meritorious conduct on the part of telegraphers in the field I should be glad to have rewarded by favorable mention or, or the presentation of suitable medals to, such personsre in acknowledging the valuable services of my assistant superintendents, Major Eckert and Captains Bruch, Smith, David, Bulkley, and Wade. These officers have given their personal and undivided attention to the interests of the military telegraph, and to their exertions it is indebted for its uniform promptness, reliability, and usefulness.

I would call especial attention to the paper herewith, marked G, it being a report from Captain Bulkley, assistant superintendent, Department of the Gulf, upon the removal of rebel obstruyour Teche, La. Major-General Banks having called upon Captain Bulkley to remove the impediments to the navigation of the bayou, he undertook the task and speedily succeed in accomplishing the same. I would call attention also to the report of Captain Bulkley herewith, marked H, on "Beardslee's Magneto Field Telegraph."

July 1, 1862, there was remaining in my hands the sum of $9,829.24 During the fiscal year ending June 30, 1863, I received from the Treasurer of the United States, at Washington, D. C., $418,000, making the total amount of funds in my possession during the fiscal year, for application to operating and constructing military telegraph air and water lines within the United States, $427,829.24. I have made a proper rendition of the same to the Government. From this amount I have transferred to my subordinate quartermasters of the U. S. military telegraph during the year the sum of $295,265.43, and disbursed on service account $55,711.76, and to the purchase of property $70,795.99.

In September, 1862, I officially transferred to Major Eckert, Captains David, Bruch, Smith, and Wade the military telegraph lines and property in the respective departments of which they were previously in nominal charge. On the 30th of June, 1863, there was remaining in my possession a balance of $6,056.06 in Government funds, which was deposited in my safe at Cleveland, Ohio.