Stedman--a portion of Grant's works in front of Petersburg. On the 27th, President Lincoln reached City Point, on the James River, in the steamer "Ocean Queen." Sherman reached City Point the same day, and, after meeting the General-in-Chief, Grant took him on board the "Ocean Queen" to see the President. Together they explained to Mr. Lincoln the Military situation, during the "hour or more" they were with him. Of this interview with Mr. Lincoln, General Sherman afterwards wrote: "General Grant and I explained to him that my next move from Goldsboro would bring my Army, increased to eighty thousand men by Schofield's and Terry's reinforcements, in close communication with General Grant's Army, then investing Lee in Richmond, and that unless Lee could effect his escape, and make junction with Johnston in North Carolina, he would soon be shut up in Richmond with no possibility of supplies, and would have to surrender. Mr. Lincoln was extremely interested in this view of the case, and when we explained that Lee's only chance was to escape, join Johnston, and, being then between me in North Carolina, and Grant in Virginia, could choose which to fight. Mr. Lincoln seemed unusually impressed with this; but General Grant explained that, at the very moment of our conversation, General Sheridan was passing his Cavalry across James River, from the North to the South; that he would, with this Cavalry, so extend his left below Petersburg as to meet the South Shore Road; and that if Lee should 'let go' his fortified lines, he (Grant) would follow him so close that he could not possibly fall on me alone in North Carolina. I, in like manner, expressed the fullest confidence that my Army in North Carolina was willing to cope with Lee and Johnston combined, till Grant could come up. But we both agreed that one more bloody battle was likely to occur before the close of the War. Mr. Lincoln * * * more than once exclaimed: 'Must more blood be shed? Cannot this last bloody battle be avoided?' We explained that we had to presume that General Lee was a real general; that he must see that Johnston alone was no barrier to my progress; and that if my Army of eighty thousand veterans should reach Burksville, he was lost in Richmond; and that we were forced to believe he would not await that inevitable conclusion, but make one more desperate effort."