When the Kioways arrive I apprehend they will have many horses and mules in their possession which will be identified by the Texas people here as the property of people living in Texas; the friendly relations and recent social intercourse of these Indians with those of the wild bands has been the cause of introducing here several horses and mules of that description already. My original instructions under the United States Government was to take possession of all such property and have them delivered to their proper owners, but if a course of that kind was now pursued it would at once defeat the Treaty with the wild bands and cause them to recommence their depredations with increased violence and renewed vigor. The 10th Article of the recent Treaty reads thus: It is distinctly understood by the said four bands of the Ne-um, the State of Texas is one of the Confederate States, and joins in this Convention, and signs it when the Commissioner signs it, and is bound by it; and that all hostilities and enmities between it and them are now ended, and are to be forgotten and forgiven forever on both sides. Also the 19th Article commencing at the 15th line reads thus: And the same things in all respects are also hereby offered to the Kioways and agreed to be given them, if they will settle in said Country, atone for the murders and robberies they have lately committed and show a resolution to lead an honest life; to which end the Confederate States send the Kioways with this talk, the wampum of peace and the bullet of war, for them to take their choice, now and for all time to come. But the Treaty is silent in reference to the manner in which the owners of property lost in that manner are to be remunerated. In a consultation which I held with Capts Hart and James we determined to take proof in reference to the ownership of the property, place a fair valuation upon it and submit it to the Confederate Government for their approbation, approval, and allowance, provided, however, that it should meet your approbation in the first place. A short time since a delegation from all the tribes here except the Tonkahwas and Comanches visited the Kioways to obtain from them their horses which were stolen by the Kioways, one of the Waco Chiefs has returned and says they delivered to him ten of the stolen horses, were disposed to be friendly and said all of them should be given up, but after he left a Wichita stole from the Kioways twenty-one horses and a Caddo four and have brought them to the Reserve. I held a consultation with the Chiefs in reference to the matter in which it was determined that the horses should be taken from those who stole them and returned to the Kioways immediately after the return of the Wichita Chief La-sa-di-wah, who will report the facts as they are.