The workmen sent by me to Savannah have remove I the boiler and engine from the Barton, and are taking out the bed-palte. The boiler and most of the engine have safely arrived at the Charleston and Savannah Railroad depot, and arrangements have been made to transport them to the ship-yard. After many annoying delays, Messrs. Cameron & Co. have fairly gone to work at the torpedo machinery and iron prow, of which I hope next week to rapid progress.

Major Childs has undertaken the manufacture of the friction-tubes at the Charleston Arsenal. Captain Hartstene, C. S. Navy, has proffered me his aid in carrying the work to completion. As I am assured that his extensive nautical will render his services invaluable to the successful accomplishment of the work, I hope, meet the approval of the commanding general.*

The only obstacle now in the way of the rapid completion of the work is the want of plating for armor. Everything is now ready to commence the bending of the plates as soon as they may be placed my possession.

I have the honor to be, general, very respectfully, your obedient servant,

FRANCIS D. LEE,

Captain Engineers.

CHARLESTON, January 28, 1863.

Bring. General THOMAS JORDAN,

Chief of Staff:

GENERAL: I have the honor to report that all the necessary machinery has arrived from Savannah for marine torpedo ram, and that the boiler has been placed in the vessel. The ship carpenters are finishing the deck and preparing the sponsings and shield.

Messers. Cameron & Co., having transferred their works to the Government, have notified me that application must hereafter be made to Major Childs for the further prosecution of that portion of the work with which they were charged.

I have communicated with Major Childs on the subject, but as yet have been able to make no definite arrangements.

I have the honor to be, general, very respectfully, your obedient servant,

FRANCIS D. LEE,

Captain of Engineers.

RICHMOND, VA., February 4, 1863.

GENERAL: The President desires me to inform you in regard to affairs on our southern and eastern coast, as far as is known here.

General Beauregard telegraph that, on the 30th and 31st ultimo, gunboats and transports, laden with men, munitions, and horses, left the harbor of Beaufort, N. C., steering south, and are supposed to be destined of Beaufort, N. C., steering south, and are supposed to be destined for Charleston or Savannah. General Beauregard thinks their destination is Savannah, from recent demonstrations there.

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*Approved.-G. T. B.

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