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sum at $200, which was supposed to be the ordinary amount required at that time to hire a substitute. The draft was made under the 1st section of the act of Congress of July 17th, 1862, which authorized the Secretary of War, where there is no State law, or where the State law is deficient, to adopt such rules and regulations in regard to calling out the militia as he may deem best.

The whole number who established their claims to the benefit of the Constitutional provision was 3,169, as is shown by the report of the Commissioner. A portion of these took exceptions to the plan adopted by Mr. Siddall, the Commissioner of drafting, by which it was determined how many, and by whom, the equivalent should be paid, and to the amount of the equivalent itself. An appeal was taken from his action in the premises. As the Constitution and laws of Indiana make no provision beyond the fact that persons conscientiously opposed to bearing arms, shall not be compelled to do military duty, and as the authority by which the draft was made was derived solely from the act of Congress, and the action of the War Department, I referred the questions involved at once to the decision of Assistant Adjutant General Buckingham. After mature deliberation, he decided that as the exemption was made by virtue of the Constitution of the State only, the War Department had no authority and could confer none upon the Executive of the State to enforce the collection of the equivalent, or determine its amount.

In the correctness of this decision I fully concur, and therefore refer the whole matter to the Legislature as a proper subject for its consideration.

I appointed J. P. Siddall, Esq., a Commissioner, under whose direction and supervision the draft was made. His duties were novel and difficult, but were performed with great promptness and ability. His report is herewith submitted.

SIX REGIMENTS.

At the extra session of the Legislature, an act was passed authorizing the organization of six regiments of State troops, enlisting for the period of twelve months. These regiments were raised, and shortly after their organization four of them were permitted to reorganize and enter the service of the United States, for three years or during the war; the remaining two were subsequently transferred to the service of the United States, under a provision in the act authorizing such transfer to fill the requisition for troops made by the President of the United States, the general Government assuming all expenses incurred in their organization and support.

SUPPLIES.

During the first five months of the war there was no Federal Quartermaster in this State, and the General Government furnished no

supplies of any kind for the equipment of Indiana troops, but all necessary supplies were furnished by the State.

The State has also furnished large supplies from time to time, since that, where they were required for the health and prompt equipment of our troops, and where the Government had failed or was unable to furnish them in time.

STATE ARMS.

When the war began the stock of arms on hand belonging to the Government, was small and generally of a very inferior quality. It was due to the lives and'honor of the brave men who went to the field; to the character of the State and the success of our cause, that our troops should be furnished with the best arms that could be procured. Accordingly, I sent my agents into the market from time to time, and purchased the best arms that could be obtained upon fair terms, and this I continued to do until such time as the Federal Government requested the States to desist from the further purchase of arms, alleging that it increased the competition and raised the prices, and declaring that it would supply all troops, and would pay for no more arms purchased by the State. With the exception of a few thousand, all the first class arms in the hands of Indiana troops were purchased by the State; but it has been a source of great trouble and mortification that a large portion of our troops, despite of all efforts made, have been supplied with arms of an inferior quality.

In the months of August and September last, the rebel army entered Kentucky and the war was brought to our very border; the Ohio river was low, and could be forded in many places by cavalry, and even infantry, and the peace of the State was seriously threatened. In this emergency, I believed it to be my duty to purchase 10,000 superior arms for the use of Indiana troops, and I sent an agent to New York, who succeeded in purchasing that number of the first quality at fair prices. Mr. D. R. Martin, President of the Ocean Bank, without requiring any security, and upon the credit of the State, advanced the money to pay for them, in all $237,269 30. Shortly after the purchase of the arms, the rebel forces were driven from Kentucky, the tide of war flowed back from our borders, and the danger so seriously threatening the State passed away. At that time, we had in the State about 8000 troops preparing for service, but who were unarmed, and no arms had been provided for them at all proper to be taken to the field. I therefore put these arms in their hands upon a special agreement of the Government, to pay for them at once. There was a delay of a few weeks in getting the warrant through the Departments at Washington, but the Government has now paid the principal, but not the interest; the officers of the Treasury alleging the want of authority to pay the interest.

ARSENAL.

When our first regiments were ready to take the field, they were unprovided with ammunition, and as none could be readily procured, it became necessary to have it prepared. Mr. Sturm, now the Lieut. Colonel of the 54th regiment, was engaged for that purpose. He had studied the art in Europe, and was thoroughly instructed in all its details. He succeeded well in the enterprise from the beginning, and his ammunition was pronounced the very best in use. Thus was the Arsenal established, and as the demand for ammunition daily increased, and the necessity so far from passing away became constantly greater as the war progressed, what was first intended as a temporary convenience, became a large and permanent establishment. Licut. Col. Sturm continued at the head of the establishment, managing it with great success and ability, preparing ammunition of every description for artillery and small arms, not only supplying our own troops when going to the field, but sending immense quantities to the armies in the West and South. In several emergencies, the armies in the West and South were supplied from here, when they could not procure it in time from other Arsenals, and serious disasters thereby avoided.

Shortly after the Arsenal was fully established, it was brought to the attention of the War Department, and the ammunition having been thouroughly tested, the Government agreed to pay for what had already been issued, and to receive and pay for what should be prepared thereafter, at prices which were mutually satisfactory to both parties. These prices were generally below what the Government paid for ammunition, but such as it was believed would fairly indemnify the State for all costs and expenses incurred on that account. Every effort was made to conduct the operations of the Arsenal with great economy, while paying a fair price to the many operatives employed. Persons have been employed sometimes to the number of five hundred, and profitable occupation has thus been furnished to many who otherwise would have wanted the means of support. My direction to Col. Sturm was, to give the preference to those whose relatives and supporters were in the field.

Up to the 1st day of January, 1862, there has been prepared at the Arsenal 92,000 rounds of artillery ammunition, and 21,915,500 rounds of ainmunition for small arms.

The report of Lieut. Col. Sturm, herewith submitted, will show the extent and the result of the operations in the Arsenal.

An examination of the Arsenal account will show that the State has not lost a dollar by it. The prices fixed for the ammunition. were intended merely to cover all costs and expenses incurred in its preparation, but by economy and successful management, a balance will be found in favor of the State.

QUARTERMASTER AND COMMISSARY GENERAL.

The first Quartermaster General I appointed after the beginning of the war, was General Thomas A. Morris. He held the office but a short time, when he resigned, and was succeeded by Gen. John H. Vajen, who remained in office till March 12th, 1862, when he resigned and was succeeded by Gen. John C. New, on the 13th day of October, 1862, Gen. New resigned and Gen. Asahel Stone, the present acting Quartermaster General, was appointed. The reports of these several officers are herewith submitted:

Gen. Isaiah Mansur, the first Commissary General, resigned on the 29th day of May, 1861, and was succeeded by Gen. Asahel Stone, who has held the office since. Their reports are herewith submitted.

The operations in the Quartermaster and Commmissary Departments have been large, involving many contracts, and the disbursement of large sums of money. They are a proper subject for legislative investigation, to ascertain whether they have been well and faithfully performed.

CARE OF THE SICK AND WOUNDED.

Shortly after the war began, it became apparent that our sick and wounded soldiers, when all had been done for them that could be, by Regimental and Hospital Surgeons, under the regulations, must in very many cases, suffer greatly from want of attention, and necessary supplies. Accordingly, I very early adopted the plan of sending agents to look after the condition, and as far as possible supply the wants of the Indiana troops. These agents had their instructions to follow in the track of our armies, to pick up the sick and the wounded who may have fallen by the wayside, visit the Hospitals, report the names of the sick, wounded and dead, afford relief whereever it could be afforded, inform the State authorities what kind of supplies were needed and where, visit the troops in the field and ascertain their wants and condition, and aid in having their requisitions. for supplies promptly filled. These agents have generally performed their duty well, and I believe, have been the instruments of saving the lives of hundreds of our gallant soldiers, and of relieving a vast amount of suffering and destitution. Many of their reports, all of which are herewith submitted, are descriptive of sufferings, sorrows and death, that would melt the stoutest heart, and, show better than can be learned in any other way, the dreadful horrors of war. The labors of these agents were not confined to any particular duties, but extended to every kind of relief that soldiers might need. They aided in procuring furloughs for the sick and wounded, discharges for such as would not be able to serve again, in furnishing transportation at the expense of the State, for such as had not the means of travel, and getting home; receiving the soldier's money and distributing it to their families, hunting up the descriptive rolls for such as

had been long confined in Hospitals, but for want of their rolls could not be paid or discharged, visiting battle-fields, bringing home the wounded, and distributing sanitary stores. In some cases I directed the chartering of steamboats for the transportation of the sick and wounded, and in general, instructed my agents to incur such expenses as were absolutely necessary to enable them to execute their mission. But notwithstanding all that has been done, I have to lament that the efforts have come far short of the mighty demand; that much suffering has gone unrelieved, and that many of our brave sons have languished and died among strangers, in destitution and neglect, with no friend present to soothe their last hours, or mark the spot where their ashes sleep.

I have employed and sent to the field many additional Assistant Surgeons, to remain until the emergency they were sent to relieve had passed. After severe battles, the Regimental Surgeons, worn down by fatigue and exposure, were found to be inadequate to the care of the wounded, and additional aid became indispensable.

Many times all the Surgeons of a regiment were either sick or absent on detached duty, and their places had to be supplied by temporary appointments. They have generally discharged their duty with ability, and to the satisfaction of those to whom they were sent, and for the promptitude with which they left their business and responded to these sudden calls, are entitled to the thanks of the State.

After the battle of Shiloh, and in anticipation of the conflict to come off at Corinth, I applied to the Secretary of War for permission to appoint two additional Assistant Surgeons to each regiment in the Grand Army of Major General Halleck. The permission was granted, under which I sent about seventy Surgeons to that Army, and I am gratified to believe that this movement led to the amendment of the law by which a third Surgeon was added to each regiment, a measure greatly needed.

I have also established at Washington, Louisville, Nashville, Memphis, Cairo and Columbus, Ky., permanent agents, who have rented houses and keep public offices, where sanitary goods are deposited for distribution, and to which soldiers can resort for relief. These agencies are found to work well, and are accomplishing a great deal of good. Permanent agents have been employed at Philadelphia, St. Louis, Keokuk and New York, for the relief of such Indiana soldiers as may be carried to those points.

The number of soldiers passing through this city, to and from the Army, or coming here to procure discharges and furloughs, made it necessary to provide quarters where they could receive lodging and subsistence during their stay. Accordingly I procured the erection of a "Soldier's Home" which has been, in the main, well managed, and has been the source of relief and comfort to thousands.

While upon this subject, it is with great pleasure that I lay before you the report of Dr. Hannaman and Alfred Harrison, Esq., the President and Secretary of the Sanitary Commission.

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