for the purposes of this report a brief statement of what was done from that date up to the 1st of July, and to make some slight alterations in it which I find necessary. The lines from Morehead City to Raleigh and from Wilmington to Goldsborough remained in possession of the Government and continued to be operated by our department. The reduction of the force on these roads was gradually continued and expenses reduced in every way possible. whenever practicable colored laborers (who could be obtained for $15 to $20 per month) were substituted for the more expensive white labor, which in the first place we were compelled to bring from the North, and all men were now employed by the month instead of by the day, as had been necessary during the war, and the allowance of extra time was ordered to be discontinued. On the 6th of July I was relieved of the charge of the Department of North Carolina, but it was not until the 17th that my successor was prepared to take hold of the roads. When transferred to him the roadway was in fine condition, the bridges, water stations, and all other structures in complete order; a large supply of wood, lumber, cross-ties, saw logs, &c., on hand; the rolling-stock in good repair, and, in short, everything in such shape that the roads could be operated with but small comparative outlay for some months to come. At the time I was relieved the following list of supplies were reported on hand in his department by the timber inspector: Seven thousand six hundred and fifty-five cords wood, 11,400 cross-ties, 2,826 piles, 689 pieces hewn timber, 6.500 linear feet saw logs. From the date of my last report until relieved the following amount of materials of the kind named were used in the maintenance of my department:

Kind of Morehead City Wilmington and Total.

material. and Raleigh Goldsborough

line. line.

Iron 103 39 142

rails....tons.

Chairs....numb ... 200 200

er.

Spikes....kegs 200 48 248

.

Cross- 13.500 1.753 15.253

ties....number

.

Hewn 3.200 2.600 5.800

timber....line

ar feet.

Sawed 7.160 3.000 10.160

lumber....feet

, B. M.

Nails and 24 20 44

spikes....kegs

.

The following table shows the movement of loaded cars over both roads from the 1st of May to the 17th of July, 1865:

FORWARDED.

From- To- Number.

Morehead City. The front. 1.427

Do. New Berne. 225

New Berne. The front. 325

Do. Morehead City. 361

Wilmington. Goldsboroug. 547

Total. ... 2.880