As the cost of material, labor, subsistence, &c., has rapidly advanced, the amount of money which will be required for the operation and construction of U. S. military telegraph for the present year, if the war continues to its fiscal end, will be proportionately increased. Probably $90,000 to $100,000 per month will be required to meet the indispensable expenditures of the corps.

A monthly average of 1,000 persons have been engaged in the military telegraph service within the several departments during the fiscal year of 1864. The number at present in the service is considerably greater, and increases as the Federal forces advance or the military operations become more active and extended.

Military telegraph, land and submarine lines.

Land. Sub-marine.

Miles. Miles.

In operation July 2,969 39 3/4

1, 1863..

Constructed during 3,692 15 3/4

year..

Total in operation 6,661 55 1/2

during year..

Abandoned, &c.. 1,536 1 1/2

In operation June 5,125 54

30, 1864..

Distributed as follows:

Land. Sub-marine.

Miles. Miles.

In the Department 639 5 1/2

of the Gulf,

Captain Bulkley..

In the Department 55 12

of the South,

Captain Sheldon..

In the Department 874 32 1/2

of the Potomac,

Major Eckert..

In the Department 310 1/2

of West Virginia,

Captain Lynch..

In the Departments 1,732 1/2 1 1/4

of the Tennessee,

Cumberland, and

Mississippi,

Captains Brunch,

Gross, and Van

Duzer..

In the Department 1,303 1 3/4

of Missouri and

Kansas, Captain

Smith..

In the Department 211 1/2

of Arkansas,

Captain Clowry..

Total.. 5,125 54

The estimated number of telegrams transmitted over the military telegraph lines during the fiscal year is 1,800,000.

Herewith is statement A* of quartermaster's property received from all sources, transferred, expended, and on hand June 30, 1864, condensed from the property statements accompanying the reports of the different quartermasters.

I take pleasure in stating that the several assistant quartermasters and assistant superintendents engaged in the military telegraph service have invariably responded with willing alacrity to all orders issued from these headquarters, having in view the execution of such demands as have been made upon me from time to time for increased or extraordinary telegraphic facilities.

Your perusal of their respective reports is very respectfully solicited.

I heartly indorse the compliments tendered by the different assistant superintendents to the employes under charge. These men generally have faithfully pursued their various duties with commendable reliability and often under circumstances requiring force of character sufficient to undergo many privations, resist, stampedes, and risk cap-

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*Omitted.

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