gust, 1862, asked authority to sell two bales of cotton turned over to him from the transport Black Prince, shipped from New Orleans by General Butler, which authority was given and the cotton sold.

June 23, 1863, Captain W. W. McKim was instructed by the Quartermaster General, in relation to cotton and sugar forwarded to him under General Orders War Department No. 88, 1863, as follows: "The cotton and sugar, except what sugar the Commissary General elects to take for army use, must be turned over to the agent of the Treasury Department, to be by him sold." He was also instructed that any charges against the property for freight, &c., should be paid, and charged against the product of sale.

In relation to property shipped to him by Colonel Holabird, chief quartermaster, &c., Captain McKim, June 27, 1863, says: "Previous to the receipt of your letter I had received $161,535 69, being the proceeds from auction sale of the property received by the steamer McClellan. On Tuesday last I sold at auction 200 bales of cotton received from New Orleans by steamer City of Bath. My course in this business (and I presume also the action of Colonel Holabird) was based upon the supposition that the proceeds could be appropriated as he desired. No agent of the Treasury Department could have made a more judicious or economical sale, or have realized more for the property than I have done, and I am confident that my action will receive the approval of any competent agent the Treasury Department may appoint. I am ready to turn over the proceeds to the agent of the Treasury Department whenever required to do so. I respectfully ask that I may be authorized to retain so much of the proceeds as will suffice to reimburse Colonel Holabird for the expenses at New Orleans, and to place such sum to his credit, it being a proper charge against the property before the net proceeds can be determined."

The Quartermaster General, January 5, 1864, in a letter to the Secretary of War on the subject of cotton funds in the hands of Captain W. W. McKim, at Boston, made the following recommendations: "That the money may now be made available for public use, I respectfully recommend that, after refunding to the quartermasters' department the expenses incurred by it in payment of charges on the property and transporting it to Boston, it be turned over to the Treasury Department." This recommendation was approved by the Secretary of War, January 7, 1864, and on the 12th of the same month Captain McKim was so instructed.

Brevet Major John W. McKim, assistant quartermaster in charge at Boston, wrote on the 21st of June, 1866, giving a "statement of cotton received by the quartermasters' department at Boston, Massachusetts, from the commencement to the end of the rebellion," and states that the" sum of $209 79, received from the sale of two bales per ship Black Prince, was used in expenditures in the quartermasters' department and taken up on the account current of my predecessor in February, 1863, the proceeds from the sales of cotton received per steamer City of Bath and steamer McClellan, amounting to $194,879 33, were deposited to the credit of the Treasurer United States, and a certificate of the United States assistant treasurer at Boston for that amount, forwarded to you by my predecessor Captain William W. McKim, on the 11th of February, 1864, in accordance with instructions contained in your letter of January 12,

1564."

May 20, 1863, Major S. Van Vliet, quartermaster New York, received 412 bales of cotton from New Orleans, per steamer George Peabody. May 23, 1863, Major Van Vliet received 400 bales of cotton from Captain A. N. Shipley, assistant quartermaster, per ship Mantanzas from New Orleans. June 29, 1863, Major Van Vliet reports receipt from Colonel S. B. Holabird, chief quartermaster at New Orleans, per Captain Jacob Mahler, assistant quartermaster, of 530 bales of cotton and samples per steamer Matanzas, from New Orleans, and was directed by the Quartermaster General to turn it over to the agent of the treas

ury.

May 23, 1865, General Van Vliet received 1,400 bales of cotton per steamer Monterey, invoiced by General Canby, and June 3, 1865, was directed to turn over all cotton to Simeon Draper, agent of the Treasury Department.

I also transmit a copy of a letter of the Quartermaster General, of October 29, 1866, to the Secretary of War, covering a copy of a letter of General Van Vliet, of October 11, 1866, in which is given a condensed statement of all the cotton received by him during the war, and the disposition made of it, marked C, D, and E.

This office is not in possession of the papers in the cases of Duncan F. Kenner and J. W. Zacharie, or of any information in relation thereto.

I am, sir, with great respect, your obedient servant,

D. H. RUCKER,

Brevet Major General U. S. A., Acting Quartermaster General. Hon. E. M. STANTON,

Secretary of War.