Governor's Island is better adapted for the reception of prisoners than any place in the interior and I would respectfully suggest that sheds for the accommodation of 5,000 be erected there immediately. The cost of transportation thence to an inland camp would go far toward covering the expense of the buildings. I would respectfully suggest also that bunks be but in Castle William for the accommodation of prisoners confined there. By this means more can be provided for there and good police and health will be promoted. Of course they would be so arranged as to be easily removed. I leave for Detroit this evening.

I am, very respectfully, your obedient servant,

W. HOFFMAN,

Lieutenant Colonel Eight Infantry, Commissary-General of Prisoners.

WAR DEPARTMENT, Washington, June 18, 1862.

Major-General McCLELLAN:

The Adjutant-General has just submitted to me your telegram addressed to him and dated the 13th instant respecting the exchange of prisoners.

This subject has for several months been under the direction of General Wool who has had several negotiations with Howell Cobb and General Huger. The last arrangement made was broken off by the rebel authorities denying Huger's authority to make the arrangement for Corcoran's exchange.

It is believed that their real reason for breaking off was to obtained an arrangement that would secure the release of General Buckner. The President has for some days been considering the question of agreeing to a general exchange but has not yet decided because strong opposition is manifested to the exchange of Buckner.

I have ordered the Adjutant-General to send you immediately by mail a copy of the correspondence between General Wool and General Huger which will enable you fully to understand the question in dispute when General Wool left Fort Monroe.

EDWIN M. STANTON,

Secretary of War.

WAR DEPARTMENT, ADJUTANT-GENERAL'S OFFICE,

Washington, June 18, 1862.

CHAIRMAN COMMITTEE ON MILITARY AFFAIRS,

House of Representatives.

SIR: I have the honor to acknowledge the receipt of your communication of the 5th instant inclosing the memorial of Captain H. C. Wood, U. S. Army, asking compensation for property lost by him when the Military Department of Texas was surrendered to the rebels, and requesting to know what has been the course pursued by the United States Government in such cases heretofore and my opinion in the matter.

In reply I have respectfully to state that this is the first instance on record of the traitorous surrender to rebels by a U. S. officer. But there is in my opinion a previous action of the Government which would commend this case to the liberality of Congress. I will cite as a sufficient instance the act of July 14, page 512, U. S. Statutes at