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agent of this department, an expert, which showed a condition of affairs very different from that reported to this office by the company, and, with the approval of the Secretary of War, they were called upon to pay at least 88,000 a month, which they have neglected to do. The following railroad companies appear to have the ability and the desire to pay what they have covenanted for the property purchased by them: 1. Alexandria, Loudoun, and Hampshire; 2, Atlanta and North Carolina; 3, Alabama and Florida, for repairs; 4, Indianola; 5, Mississuppi, Gainesville, and Tuscaloosa; 6, Macon and Brunswick; 7, Mobile and Ohio; 8, Mississippi and Tennessee; 9, Memphis and Ohio; Pacific Railroad of Missouri; ii, Seima and Meridian; 12, Vicksi, and Meridian: 13, Washington, Alexandria, and Georgetown. For the details of the indebtedness of these several railroads, I refer to a tabular statement which accompanies this report. The gross . amount of the debt is stated above.

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wATER TRANspoRTATION.

During the fiscal year ten vessels—nine steamers and one schoonerare reported as chartered in ocean and harbor service, at total cost of 8143,978 71.

Twenty vessels of all classes have been the property of the department during the year, viz: Nine steamers and eleven schooners, sloops, and barges. Seven vessels—viz: four steamers and three sailing ves. sels–have been sold, realizing the sum of $37,790.

since the close of the fiscal year one steamer and two barges have been sold at public auction, and the steamer Ella Morse has been ordered sold.

The steamer Newberne was, upon requisition from the Pacific coast, for a steamer to keep up communication with Alaska, purchased from the Navy Department on September 1, 1868, at the price of $35,000.

She sailed from New York on December 12, 1868, and arrived at San Francisco on April 30, 1869.

There was expended upon her, including her original purchase money, the sum of $102,136 09, as follows:

Original purchase-------------------------------------- $35,000 00 Alterations and repairs....... .......................... 19,725 95 outfit and supplies------------------------------------- 18,042 61. Labor------------------------------------------------- 109 72 Fuel and coaling--------------------------------------- 2,340 30 Wages of officers and crew........................ - - - - - - 6,307 92 Pilotage........ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 359 50 Gold in hands of captain to meet expenses on the voyage, *15,000---------------------------------------------- 20,250 s)0 Total.------------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 102,136 09

She touched at various ports; passed through the Straits of Magellan, with detentions in harbor of forty-five days, and was under way ninety-two and two-thirds days. The longest run in any twenty-four hours was 226 miles. Her cost from her arrival in San Francisco to June 30, 1869, son repairs, victualing, and manning and running, has been $20,551 37. She is constantly and advantageously employed in supplying the

Alaska posts, and seems to have fully met all the requirements of the service.

The total amount expended for repairs and wages of crews of vessels owned by the department during the year was $163,870 86.

The movement of transportation by water during the year was: Number of persons, 96,118; number of animals, 3,685; tons of freight, 62,171.

The total expended for water transportation during the year was $1,424,222 82.

Contracts for water transportation were given during the year over the following routes: 1, New Orleans to Brazos Santiago and way points, and return, with C. A. Whitney & Co.; 2, New Orleans to Pass Christian and Mississippi City, with Whitney & Hutchinson ; 3, Brazos Santiago to Brownsville, Ringgold Barracks, and Laredo-Kennedy & King; 4, New Orleans to Fort Pike and Mobile, Alabama-Whitney & Hutchinson; 5, Ship Island to Mississippi City and Pass Christian, and return-L. B. Wakeman; 6, New Orleans to Key West, Barancas, Apalachicola, St. Marks, Cedar Keys, Tampa, Tortugas, two contracts-T. W. Pakers; 7, Mobile to Montgomery, Alabama-Mobile Trade Company, J. J. Cox, president; 8, Charleston, South Carolina, to Jacksonville, Pilatka, and St. Augustine, Florida—O. H. Campbell; 9, St. Louis to Fort Benton and way posts on the Missouri River-J. N. Bofinger; 10, Chicago to Sioux City by rail, and thence to Fort Benton and way points by water-J. Lawrence; 11, St. Paul, Fort Kodiak, to Fort St. Nicholas, Cook's Inlet-Hutchinson, Kohl & Co.; 12, Astoria to Lake Disappointment-J. H. D. Gray; 13, Victoria and Camp San Juan Island-Edgar Marvin; 14, between mouth of Colorado River and Elda rado Cañon-George A. Johnson & Co.

Of the above those between Mobile and Montgomery, Brazos Santiago and Brownsville, Charleston and Jacksonville, and one of those between New Orleans and Key West, expired in the course of the fiscal year. The others named are still in force, excepting the second contract between New Orleans and Key West, which expired September 30, 1869.

RAILROAD TRANSPORTATION.

The war rates of transportation granted by the convention of railroad companies assembled in this city at the invitation of Hon. E. M. Stanton, Secretary of War, early in 1862, ceased to govern the business of rail. road transportation on March 1, 1867.

The classification of military stores having been revised in conference with the executive committee of general freight agents, early in 1867, the revised tariff was published in General Orders No. 24, of the Quartermaster General's Office, to go into effect on April 1, 1867.

This classification, combined with the rates of transportation published by the several railroad companies of the United States, has governed generally in settlement with these companies since that date.

Some railroad companies have refused to abide by it, and have insisted upon their own classification, as well as upon their tariffs of rates, maintaining that they are not bound by the action of the convention of general freight agents.

This branch settles the accounts with the Pacific railways, which now do a large part of the railroad transportation of the army, and also those of the indebted railroads.

The railroad transportation during the fiscal year, as reported, is:

No. of persons, 60,297; number of animals, 14,281; tons of material. 41.381. The total cost of railroad transportation during the year was 82,253,304 30. Of the above there were moved on the Pacific railroads—Number of persons, 18,536; tons of material, 28,738.

At a cost for persons of ................................ $208,315 97 For material ------------------------------------ - - - - - - 724,830 24 Total by Pacific railroads ........................ 933,166 21

One-half of this sum is paid in money at the treasury, the other half is retained by the treasury to meet the interest on the bonds advanced by the United States to these roads.

wagoN AND stage TRANsportation.

The only contract for stage transportation made during the fiscal year is that with Benjamin A. Resher, Austin, Texas, for the transportation of officers, soldiers, and employds in the service of the United States, from Austin and San Antonio to various points in Texas.

This contract commenced April 10, 1869, and expires December 31, 1802).

Under an arrangement made between the War Department and the Department of the Interior, May 21, 1869, supplies for the Indian service are transported on the plains under contracts made by the Quartermaster's Department; the cost of such transportation to be reimbursed to the Quartermaster's Department by the Indian Burean, from the appropriation of 82,000,000 for the pacification of the Indians, granted by the act of April 10, 1869.

The transportation by wagon and stage during the year was: Persons, 3,839; materials, tons, 27,316; costing $1,673,508 42.

Recapitulation.—The total movement by land and water during the year has been: Persons, number, 152,466; animals, number, 17,966; materials, tons, 130,868; at a cost of $5,351,035 54, which does not include the cost of purchase and support of the animals and wagons and wages of the men employed in the trains belonging to the United States, and employed with the army.

The miscellaneous claims acted on by the transportation branch of the office are as follows:

Claims on file July 1, 1868, 1,464, for..................... $140,399 60 Claims received during the year, 1,000, for................ 103,944 75 Claims settled during the year, 502, for................... 46.222 85 Claims rejected during the year, 381, for.................. 52,645 SS

The claims and transportation accounts acted on by this branch during the year have been:

5.945, for-------------------------------------------- 87.268, 103 37 Disposed of, 3,208, for...... - - - - - - - - - - - - - - - - - - - - - - - - - - 5,083, 970 11 8till on file June 30, 1869, 2,737, for.................. ... 2, 184, 19326

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ROSTER, ORDERS, AND INSPECTION. A book containing a compilation of the military record and history of the officers of the Quartermaster's Department, during and since the war, was completed during the fiscal year.

A station book has also been completed, giving, so far as the reports of the officers have been received, the stations of officers on duty as quartermasters' during the war. In this book the stations are arranged alphabetically. A similar book relating to army organization has also been completed.

With these two books, the name of any station or of any army corps, division, or brigade being furnished, the name of the quartermaster on duty therewith, at any date, can be found, excepting the cases in which the reports have failed to reach the office from the casualties of war.

The lists of distances, for computing mileage, have been corrected from time to time as completion of new railroads has changed them.

A complete corrected list to the latest date is in preparation.

Of orders, 209,750 copies have been received, and 137,500 of them have been distributed during the year; and 2,500 inventory and inspection reports, reports of boards of survey, and 2,800 letters and other communications, have been acted on in this branch of the office, besides the personal reports of officers, and letters in relation to receipt and distribution of orders, &c.

At the commencement of the fiscal year twenty clerks were on duty in this branch of the office, shortly afterwards reduced to twelve, and at the end of the fiscal year to six only, which is not sufficient for the prompt transaction of the business of the office.

A report in tabular form, giving the stations and general outline of the duties of the officers of the department during the year, accompanies this report; also a statement of their posts and duties in the month of September, 1869.

CLAIMS. Under the act of July 4, 1864, and acts amendatory thereof, it is the duty of the Quartermaster General to examine any claim submitted in accordance therewith ; and if convinced that it is just, and of the loyalty of the claimant, and that the stores have been actually received or taken for the use of, and used by the army of the United States, then to report it to the Third Auditor of the Treasury, with a recommendation for settlement.

On June 30, 1868, there were filed in this office 13,148 claims under this act, of which 11,736 had been suspended, waiting proof, which has in but few of these cases been presented; they amounted to $6,592,706 92.

There were received during the year 4,154 claims, under the law, amounting to $3,644,765 21; and 1,119 claims, for $774,802 54, have been reported to the Third Auditor, with recommendation for settlement, as just, at $490,568 86; 890 have been rejected, $674,393 88; 3,557 have been suspended, amounting to $2,508,553 05.

Forgeries and frauds of many kinds have been attempted in the prosecution of these claims; but it is believed that few have escaped the scrutiny to which they are subjected.

NATIONAL CEMETERIES. There are reported 72 national cemeteries, and 313 local, private, or post cemeteries, in which are interred the remains of deceased union soldiers,

The total number of interments reported..................... 322,607 Of these we have been able to identify....................... 171,948 And there yet remain unknown............................ 150,659

There have been removed from the resting-places in which they were hastily buried, after death in battle, on the march, or in hospital, 233,709 deceased soldiers, and there still remain to be removed 10,753. The aggregate expenditures attending the gathering of the remains of these soldiers, under the acts of Congress providing for their tender and reverent preservation, have been $2,801,352 49; of which there were expended during the fiscal year ending June 30, 1869, $465,067 50. The estimated expenditures for the fiscal year ending June 30, 1871, are 8300,000. The titles oy which the United States holds 71 of the national cemeteries have been approved as good and sufficient, by the Attorney General of the United States. The erection of permanent iron or stone inclosures to the cemeteries, as required by law, has made some progress; and as the wooden fences with which they were at first surrounded require renewal, they will gradually be replaced by permanent inclosures. It was thought, best not to undertake this work, involving large expenditures, at all the cemeteries at the same time. The question of erecting permanent head-blocks at each grave, remains as at the date of my last report. No decision has been made upon the material or style of monument to be used. Considering that over 320,000 will be needed, the argument in favor of the head-block, formerly recommended, grows stronger. It can be more cheaply manufactured and transported, and will be quite as durable as any but the most refractory and costly stone. Great guns have been distributed and set up as monuments in many places. Tabular statements with this report show the condition of the several demeteries. At first in many of them too much gravelled or broken-stone road was constructed, and the natural surface of the earth was too much changed; hence difficulty in preventing degradation of the surface by rain and flood. The growth of grass, as the best preserver of the surface, is being encouraged. There is but little actual travel on the roads and paths of the cemeteries, not enough to keep down the grass, and the attempt to eradicate it has been ill-judged and costly. The Vicksburg cemetery was located upon the top of a bluff, in a beautiful and commanding position, but it required much terracing, which was expensive and insecure. A civil engineer, skillful in drainage work, was sent to Wicksburg in February last, and has since been engaged in work for the preservation and protection of this cemetery. Six volumes of the Roll of IHonor have been published during the year, containing the record of 117,770 graves. Three volumes, containing the record of 51,035 graves, are in the hands of the public printer. The volumes thus far published, or sent to the printer, contain the record of 307,200 graves. • Four volumes, one during the fiscal year, have been published, giving information as to the removal and re-interment of 204,000 soldiers. One copy of the burial register of each cemetery is kept by law at

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