During the fiscal year there has been paid for transportation on railroads $1,300,000, of which $800,857 was over the Pacific railroads; for transportation by water $626,373.52, and by stage $48,975.84; for the purchase of transportation animals, wagons, hire of teamsters, etc., $924,650.64.

About $370,000 have been collected from Southern railroads during the year, leaving about $4,000,000 still due.

The Quartermaster has examined and transmitted to the accounting officers for settlement $367,172.72 of claims by loyal citizens for quartermaster stores taken during the war.

Subsistence supplies to the amount of $89,048.12 have been issued to Indians.

The annual average mean strength of the Army was 24,101 white and 2,494 colored soldiers.  The total deaths for the year reported were 367 white and 54 colored.

The distribution of the Medical and Surgical History of the War is yet to be ordered by Congress.

There exists an absolute necessity for a medical corps of the full number established by act of Congress of July 28, 1866, there being now fifty-nine vacancies, and the number of successful candidates rarely exceeds eight or ten in any one year.

The river and harbor improvements have been carried on with energy and economy.  Though many are only partially completed, the results have saved to commerce many times the amount expended.  The increase of commerce, with greater depths of channels, greater security in navigation, and the saving of time, adds millions to the wealth of the country and increases the resources of the Government.

The bridge across the Mississippi River at Rock Island has been completed, and the proper site has been determined upon for the bridge at La Crosse.

The able and exhaustive report made by the commission appointed to investigate the Sutro Tunnel has been transmitted to Congress.

The observations and reports of the Signal Office have been continued.  Stations have been maintained at each of the principal lake, seaport, and river cities.  Ten additional stations have been established in the United States, and arrangements have been made for an exchange of reports with Canada, and a similar exchange of observations is contemplated with the West India Islands.

The favorable attention of Congress is invited to the following recommendations of the Secretary of War: 

A discontinuance of the appointment of extra lieutenants to serve as adjutants and quartermasters; the adoption of a code providing specific penalties for well-defined offenses, so that the inequality of sentences adjudged by courts-martial may be adjusted; the consolidation of accounts under which expenditures are made, as a measure of economy; a reappropriation of the money for the construction of a depot at San Antonio, the title to the site being now perfected; a special act placing the cemetery at the City of Mexico on the same