"With the largely increased forces which have come to me and the fact that I have your line of retreat securely in my hands, the time seems fitting that I should again demand of your excellency the surrender of Santiago and of your excellency's army. I am authorized to state that should your excellency so desire, the Government of the United States will transport the entire command of your excellency to Spain."

General Toral replied that he had communicated my proposition to his General-in-Chief, General Blanco.

July 12th I informed the Spanish commander that Major General Miles, Commander-in-Chief of the American Army, had just arrived in my camp, and requested him to grant us a personal interview on the following day. He replied he would be pleased to meet us. The interview took place on the 13th, and I informed him his surrender only could be considered, and that as he was without hope of escape he had no right to continue the fight.

On the 14th another interview took place, during which General Toral agreed to surrender, upon the basis of his army, the 4th Army Corps, being returned to Spain, the capitulation embracing all of Eastern Cuba, east of a line pa.s.sing from Aserraderos, on the south, to Sagua de Tanamo, on the north, via Palma, Soriano. It was agreed Commissioners should meet during the afternoon to definitely arrange the terms of surrender, and I appointed Major Generals Wheeler and Lawton and Lieutenant Miley to represent the United States.

The Spanish Commissioners raised many points, and were especially desirous of retaining their arms. The discussion lasted until late at night and was renewed at 9:30 o'clock next morning. The terms of surrender finally agreed upon included about 12,000 Spanish troops in the city and as many more in the surrendered district.

It was arranged that the formal surrender should take place between the lines on the morning of July 17th, each army being represented by 100 armed men. At the time appointed, I appeared at the place agreed upon, with my general officers, staff, and 100 troopers of the 2d Cavalry, under Captain Brett. General Toral also arrived with a number of his officers and 100 infantry. We met midway between the representatives of our two Armies, and the Spanish commander formally consummated the surrender of the city and the 24,000 troops in Santiago and the surrendered district.

After this ceremony I entered the city with my staff and escort, and at 12 o'clock, noon, the American flag was raised over the Governor's palace with appropriate ceremonies.

The 9th Infantry immediately took possession of the city and perfect order was maintained. The surrender included a small gunboat and about 200 seamen, together with five merchant ships in the harbor. One of these vessels, the Mexico, had been used as a war vessel, and had four guns mounted on it.

In taking charge of the civil government, all officials who were willing to serve were retained in office, and the established order of government was preserved as far as consistent with the necessities of military rule.

I soon found the number of officials was excessive, and I greatly reduced the list, and some departments were entirely abolished.

A collector of customs, Mr. Donaldson, arrived soon after the surrender, and, due to his energy and efficiency, this department was soon working satisfactorily. The total receipts had, up to my departure, been $102,000.

On August 4th I received orders to begin the embarkation of my command and ship them to Montauk Point Long Island, New York. The movement continued without interruption until August 25th, when I sailed for Montauk with the last troops in my command, turning over the command of the district to Major General Lawton.

DIFFICULTIES ENCOUNTERED IN THE CAMPAIGN.

Before closing my report I wish to dwell upon the natural obstacles I had to encounter and which no foresight could have overcome or obviated. The rocky and precipitous coast afforded no sheltered landing places, the roads were mere bridle-paths, the effect of the tropical sun and rains upon the unacclimated troops was deadly, and a dread of strange and unknown diseases had its effect on the Army.

At Baiquiri the landing of the troops and stores was made a small wooden wharf, which the Spaniards tried to burn, but unsuccessfully, and the animals were pushed into the water and guided to a sandy beach about 200 yards in extent. At Siboney the landing was made on the beach and at a small wharf erected by the engineers.

I had neither the time nor the men to spare to construct permanent wharves.

In spite of the fact that I had nearly 1,000 men continuously at work on the roads, they were at times impa.s.sable for wagons.

The San Juan and Aguadores rivers would often suddenly rise so as to prevent the pa.s.sage of wagons, and then the eight pack trains with the command had to be depended upon for the victualing of my Army, as well as the 20,000 refugees, who could not in the interests of humanity be left to starve while we had rations.

Often for days nothing could be moved except on pack trains.

After the great physical strain and exposure of July 1st and 2d, the malarial and other fevers began to rapidly advance throughout the command, and on July 4th the yellow fever appeared at Siboney. Though efforts were made to keep this fact from the Army, it soon became known.

The supply of Quartermaster and Commissary stores during the campaign was abundant, and notwithstanding the difficulties in landing and transporting the ration, the troops on the firing line were at all times supplied with its coa.r.s.er components, namely, of bread, meat, sugar, and coffee.

There was no lack of transportation, for at no time up to the surrender could all the wagons I had be used.

In reference to the sick and wounded, I have to say that they received every attention that was possible to give them. The medical officers, without exception, worked night and day to alleviate the suffering, which was no greater than invariably accompanies a campaign. It would have been better if we had had more ambulances, but as many were taken as was thought necessary, judging from previous campaigns.

The discipline of the command was superb, and I wish to invite attention to the fact that not an officer was brought to trial by court martial, and, as far as I know, no enlisted men. This speaks volumes for an Army of this size and in a campaign of such duration.

In conclusion, I desire to express to the members of my staff my thanks for their efficient performance of all the duties required of them, and the good judgment and bravery displayed on all occasions when demanded.

I submit the following recommendations for promotion, which I earnestly desire to see made. It is a very little reward to give them for their devotion and fearless exposure of their lives in their country's cause:

E. J. McClernand, Lieutenant Colonel and Adjutant General, U. S. A., to be brevetted Colonel for gallantry in the face of the enemy on the 1st and 2d of July, and to be brevetted Brigadier General for faithful and meritorious service throughout the campaign.

Geo. McC. Derby, Lieutenant Colonel of Engineers, U. S. V., to be brevetted Colonel for hazardous service on July 1st and 2d in reconnoitering the enemy's lines, and to be brevetted Brigadier General for hazardous and meritorious service in ascending, under a hot fire, in a war balloon on July 1st, thus gaining valuable information.

J. D. Miley, Lieutenant Colonel and Inspector General, U. S. A., to be brevetted Colonel for conspicuous gallantry in the battle of San Juan on July 1st, and to be brevetted Brigadier General for faithful and meritorious service throughout the campaign.

R. H. n.o.ble, Major and Adjutant General, U. S. V., to be brevetted Lieutenant Colonel for faithful and meritorious service throughout the campaign.

J. J. Astor, Lieutenant Colonel and Inspector General, U. S. V., to be brevetted Colonel for faithful and meritorious service during the campaign.

B. F. Pope, Lieutenant Colonel and Surgeon, U. S. V., to be brevetted Colonel for faithful and meritorious service during the campaign.

Maj. S. W. Groesbeck, Judge Advocate, U. S. A., to be brevetted Lieutenant Colonel for faithful and meritorious service throughout the campaign.

Charles F. Humphrey, Lieutenant Colonel, Quartermaster's Department, to be brevetted Brigadier General for faithful and meritorious service throughout the campaign.

John F. Weston, Colonel and a.s.sistant Commissary General of Subsistence, Chief Commissary, to be brevetted Brigadier General for meritorious service throughout the campaign.

C. G. Starr, Major and Inspector General, U. S. V., to be brevetted Lieutenant Colonel for faithful and meritorious service throughout the campaign.

Leon Roudiez, Major and Quartermaster, U. S. V., to be brevetted Lieutenant Colonel for faithful and meritorious conduct throughout the campaign.

H. J. Gallagher, Major and Commissary of Subsistence, U. S. V., to be brevetted Lieutenant Colonel for faithful and meritorious service throughout the campaign.

Capt. Brice, Commissary of Subsistence, U. S. V., to be brevetted Major for faithful and meritorious service throughout the campaign.

E. H. Plummer, Captain, U. S. A., A. D. C., to be brevetted Major for faithful and meritorious service throughout the campaign.

J. C. Gilmore, Jr., Captain and a.s.sistant Adjutant General, U. S. V., to be brevetted Major for faithful and meritorious service during the campaign.

W. H. McKittrick, Captain and a.s.sistant Adjutant General, U. S. V., to be brevetted Major for faithful and meritorious service during the campaign.

Capt. Johnson, a.s.sistant Quartermaster, U. S. V., to be brevetted Major for faithful and meritorious service during the campaign.

I wish to invite special attention to Dr. G. Goodfellow, of New York, who accompanied me throughout the campaign and performed much professional service as well as duties as Volunteer aid. I recommend him for favorable consideration of the War Department.

Mr. G. F. Hawkins, of New York, also accompanied me as Volunteer aid, and I recommend him for favorable consideration of the War Department for faithful and important services rendered.

My thanks are due to Admiral Sampson and Captain Goodrich, U. S. N., for their efficient aid in disembarking my Army. Without their a.s.sistance it would have been impossible to have landed in the time I did.

I also express my warmest thanks to division, brigade, and regimental commanders, without exception, for their earnest efforts in carrying out my wishes and for the good judgment they invariably displayed in handling their troops.

The reports of the division commanders are attached hereto, and those of the brigade and regimental commanders forwarded herewith, and attention respectfully invited to them. Very respectfully,

Wm. R. Shafter, Major-General, United States Volunteers, Commanding United States Forces in Cuba.