NEW YORK, May 19, 1864.

(Received 10.40 a.m.)

Honorable E. M. STANTON:

SIR: I have the honor to report that the Secretary of State's dispatch to Ministers Adams and Dayton was delivered to the purser of the Scotia, and that he was ordered by Mr. Cunard to telegraph it from Queenstown. Slips were issued by some of the morning papers exposing the forgery, and circulated among the passengers before the vessel sailed.

Very respectfully,

E. S. SANFORD,

WAR DEPARTMENT,

Washington, D. C., May 19, 1864.

Major-General WALLACE,

Baltimore:

The President directs that you take military possession of the telegraph line known as the Independent or Inland Telegraph and its offices and instruments, materials, papers, and dispatches. The principal office is Numbers 21 South street. The papers and dispatches you will forward to Colonel Wisewell, Military Governor. The agents, superintendents, and operators you will arrest and parole them to appear before you when required. You will place a guard in the offices and prevent any telegraphic.

By order of the President:

EDWIN M. STANTON,

Secretary of War.

NEW YORK, May 20, 1864

Honorable E. M. STANTON:

I have arrested and am sending to Fort Lafayette Joseph Howard, the author of the forged proclamation. He is a newspaper reporter, and is known as " "Howard,", of the Times." He has been very frank in his confession-says it was a stock-jobbing operation, and that no person connected with the press had any agency in the transaction except another reporter, who took manifolds and distributed the proclamation to the newspapers, and whose arrest I have ordered. He exonerates the Independent Telegraph Line, and says that publication on a steamer day was accidental. His statement in all essential particulars is corroborated by other testimony.

JOHN A. DIX.

Major-General.

WAR DEPARTMENT,

Washington City, May 20, 1864-9.10 p.m.

Major-General DIX,

New York:

Your telegram respecting the arrest of Howard has been received and submitted to the President. He directs me to say that while, in his opinion, the editors, proprietors, and publishers of The World and Journal of Commerce are responsible for what appears in their papers injurious to the public service, and have no right to shield themselves behind a plea of ignorance or want of criminal intent, yet he is not disposed to visit them with vindictive punishment; and hoping they will