Adjutant-General U. S. Army, November 8, 1861

SIR:

I have the honor to report that the force under my command embarked at Annapolis, Md., on the 21st October, and arrived at Hampton Roads, Va., on the 22d. In consequence of the delay in the arrival of some of our transports and the unfavorable state of the weather the fleet was unable to set out for the Southern coast until the 29th, when, under eonvoy of a naval squadron, in command of Commodore DuPont, and after the most mature consideration of the objects of the expedition by that flag-officer and myself, it was agreed to first reduce any works that might be found at Port Royal, S. C., and thus open the finest harbor on the coast that exists south of Hatteras. It was calculated to reach Port Royal in five days at most, but in consequence of adverse winds and a perilous storm on the day and night of the Ist November the fleet arrived at Port Royal bar not till the 4th, and then but in part, for it had been almost entirely dispersed by the gale, and the vessels have been straggling in up to this date. The transport steamers Union, Belvidere, Osceola, and Peerless have not arrived. Two of them are known to be lost, and it is probable that all are. It is gratifying, however, to say that none of the troop transports connected with the land forces were lost, though the Winfield Scott had to sacrifice her whole cargo and the Roanoke a portion of her cargo to save the lives of the regiments on board. The former will be unable to again put .te sea. The vessels connected with the naval portion of the fleet have also suffered much and some have been lost. l ,

After a careful reconnaissance of Port Royal Bay it was ascertained that the rebels had three field works of remarkable strength, strongly garrisoned, and covered by a fleet of three gunboats, under Captain Tatnall, late of the U. S. Navy, besides strong land forces, which the rebels were concentrating from Charleston and Savannah. The troops of the rebels were afterwards ascertained to have been commanded by General Drayton. One of the forts, and probably the strongest, wa~ from the anchoring place of our transports—altogether too great a distance for successful debarkation with our limited means. It was therefore agreed that the place should be reduced by the naval force alone.

In consequence of the shattered condition of the fleet and the delay in the arrival of vessels that were indispensable for the attack it had to be postponed until the 7th instant. I was a mere spectator of the combat, and it is not my province to render any report of this action, but I deem it an imperative duty to say that the firing and maneuvering of our fleet against that of the rebels and their formidable land batteries was a master-piece of activity and professional skill that must have elicited the applause of the rebels themselves as a tactical operation. I think that too much praise cannot be awarded to the science and skill exhibited by the flag-officer of the naval squadron and the officers connected with his ships. I deem the performance a masterly one, and ought to have been seen to be fully appreciated. After the works were reduced I took possession of them with the land forces. The beautifully eonstrueted work on Hilton Head was severely crippled and many of the guns dismounted. Much slaughter had evidently been made there, many bodies having been buried in the fort, and some 20 or 30 were found some half à mile distant.

The island for many miles was found strewed with arms and accouterments and baggage of the rebels, which they threw away in their hasty retreat. We have also come into possession of about torty pieces of ordnance, most of which is of the heaviest caliber and the most approved models, and a large quantity of ammunition and camp equipage.

It is my duty to report the valuable services of Mr. Boutelle, [C. A.] assistant in the Coast Survey, assisting me with his aceurate and extensive knowledge of this country. His services are invaluable to the Army as well as to the Navy, and I earnestly recommend that important notice be taken of this very able and scientific officer by the War Department.

very respectfully, your obedient servant,