connected with the U. S. military railroads in the Military Division of the Mississippi, which duties I have performed to the present time, station being Nashville, Tenn.

I forward herewith a statement, Form A, of all the articles of quartermaster's property which have come into my possession during the year while on duty with the military railroads. The report of property purchased, &c., in New York City will be forwarded by General S. Van Vliet, who will make an annual statement of all the quartermaster's property for the New York depot.

I also forward Form B, containing statement of all articles of camp and garrison equipage received by me.

My statement of public money is also appended, together with the amount paid for transportation by rail, river, stage, and wagon other than Government wagons. A statement of the amount paid for transportation by ocean and lake, Form CC, is appended. The nature of my duties not requiring me to furnish transportation of any kind I therefore make no report for Form D.

My statement as per Form S, of chartered vessels, &c., will be included in the annual report of General S. Van Vliet, who will report all the vessels chartered at New York City.

The other reports called for I am, in consequence of the nature of my duties, unable to make. I attach a copy of order from General D. C. McCallum, directing that a report be made of the operations of the quartermaster's department of the U. S. Military Railroads from the commencement of the war.

I have the honor to state that there were no records left in this office by my predecessor, or any data from which I could furnish anything reliable.

The accompanying statements are obtained from the auditor of military railroads, and contain all the information it is possible for me to furnish.

I preseport of Colonel J. C. Crane will furnish the statements of the disbursements for the first half of the fiscal year.

It may not be out of place here to state what are the duties of the quartermaster on duty with military railroads. The organization consists of one chief quartermaster, stationed at Nashville, with one assistant quartermaster; one assistant quartermaster stationed at Chattanooga, Tenn., and one assistant quartermaster stationed at Memphis. Captain S. R. Hamill, assistant quartermaster, is stationed at Nashville, and is responsible for all the property on the Nashville and Chattanooga, Nashville and Northwestern, Nashville and Decatur, and on the Memphis and Charleston Railroad from Decatur to Stevenson, Ala.; total number of miles, 429. He has also charge of the general supply store at Nashville, and of the lumber yard, property, saw-mills, and means of transportation of the quartermaster's department.

The rolls of the road above mentioned are made out and certified to by the general superintendent of military railroads, and after being audited and approved by the general manager or chief engineer, in accordance with orders of the War Department, are paid by the chief quartermaster at Nashville.

Captain W. R. Hopkins, assistant quartermaster, is stationed at Chattanooga, Tenn., and is responsible for all the property on the Chattanooga and Knoxville, Chattanooga and Atlanta, and East Tennessee and Virginia Railroads; total number of miles, 378. Chattanooga being so remote from the auditor's office, and it being impossible for the general manager to visit there monthly, the rolls are made out