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[[Footnote 1]]

The Schools established by various benevolent associations are in a fair way of obtaining a permanent foothold.  In several places in the State the title to ground on which to place School buildings has been obtained.  The school as I am informed will probably close about the first of July and not be re-opened until after the warm weather. 

There are two farms for dependents in the State of which possession was obtained by my predecessor Col. Whittlesey;  one near Goldsboro and one near New Bern.  In both cases, the leases I think, contain objectionable terms.  The Govt. is by them in effect a partner with the owner and by the terms of the Lease, and as is the fact in practice, is under the necessity of employing able bodied laborers.  I think that the farms or others should have been leased outright.  If it had not been for the fact that I expected to be relieved soon after entering upon the duties of Asst. Comr. I should either have annulled the contracts, or made such changes as would have relieved the Govt. from the anomalous position of being a party to a partnership in the business of planting.  It may be that for this season the matter may as well remain as at present.

The reports as to necessities of the State for seed corn and for assistance with food to people who do not now receive assistance have been forwarded.  If the policy is adopted of supplying those who can bring evidence that they have but small stores on hand, which is the prevalent idea amongst the poor and ignorant as to what constitutes destitution.  There will probably be not less than 30,000 who would be dependents in additional to those now supplied with rations.

I have reduced the numbers of employees in the belief that officers on duty in the Bureau, in charge of Sub-districts can perform all necessary labor, and that their duties will be better performed by personal attention than by the use of Assistants.  Some officers in charge of Sub-districts, who are physically disabled, are however allowed one clerk each.
Amongst other things I had it in contemplation to break up the organization of the State by division, into districts and sub districts, - and in place to divide the State into districts, the officers in charge of which should report direct to the Asst. Comr., placing the officers of greatest worth and experience at the most important points - and assigning two or more officers to a few of the Sub Districts, where the greatest and most important labors would be necessary.

[[Footnote 1]] Howard

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[[preprinted]] 487 [[/preprinted]]

[[Footnote 1]]

This report has been delayed owing in part to my absence under orders at the time when it would otherwise have been made and in part to the occupation of time consequent on being relieved of Command and change of duties.

I have the honor to state a summary of accompanying reports as follows.
No. of Freedmen for whom contracts were made in month of May (a decrease)  274
No. of Schools (last month 121)  133
No. of Teachers ([[dittos for: last month]] 152)  155
No. of Scholars ([[dittos for: last month]] 10,606)  10,971
No. of Rations issued ([[dittos for: last month]] 72,207)  44,239
Value of Rations issued
Clothing issued  None
Hospitals  11
Sick in Hospitals and Quarters (decrease 201)  1238
Orphans apprenticed (a decrease)  27
Deaths in Hospitals and Quarters (decrease of 7)  68

I have the honor to be, Genl.
Very Respectfully
Your Obt. Svt.
Sgd  Thos C.H. Ruger

Official 
Clinton A. Cilley
A.A. Gen

[[Footnote 1]] Howard