CHAP.XII.] CAPTURE OF STEAMERS TERRY AND ORR.

teers, commanding at Cairo, Ill., reporting the circumstances of the capture of the steamer W.B. Terry, on the Ohio River, at Paducah by the U.S. gunboat Lexington, and a statement by the officers of the mail steamboat Samuel Orr, running between Evansville and Paducah in reference to her capture in reprisal for the above by a Paducah mob.

Events have thus transpired clearly indicating the complicity of citizens of Kentucky with the rebel forces, and showing the impracticability of carrying on operations in that direction without involving the Kentucky shore.

Colonel Oglesby has telegraphed to me this morning that he is to receive to-morrow a deputation from the governor of Kentucky, and he has furnished them a safeguard.

I am, sir, very respectfully, your obedient servant,

J.C. FREMONT, Major-General, Commanding.

Brigadier General L. THOMAS, Adjutant-General of the Army, Washington, D.C.

Numbers 2. Report of Colonel Richard J. Oglesby, Eighth Illinois Infantry, commanding at Cairo, Ill.

BRIGADE HEADQUARTERS, CAMP DEFIANCE, Cairo, Ill., August 23, 1861

SIR: In the affair of the little steamer W.B. Terry, taken by Captain Stembel of gunboat Lexington, yesterday morning, at Paducah, Ky., I. had indisputable proof, which an examination of her papers found on board confirms that she was running in the employment of the Confederate States. Without hesitating upon the neutrality of Kentucky, I ordered her capture. She turns out to be of no great value, say, vessel and furniture, $3,000. To the Confederates three times that sum will not compensate the loss. I have had her valued by a commission of my on appointment, and the papers filed at these headquarters. I am at a loss what further to do with her legally. Of course I shall use her, if necessary to do so.

Of course Paducah was in confusion, and his excellency the governor may become indignant. The result, is that yesterday the crew of the Terry, led by the captain and a few citizens, seized the steamer Samuel Orr, from Evansville, the private property of pirate citizens of Indiana -a retaliation more vindictive than sensible, as they thus destroy the last means of illicit trade with border States north of the Ohio. Nevertheless, they have the boat and cargo, worth say, $25,000. I would like to go up the Tennessee River and make the reprisal. I send herewith a copy of the statement of the captain and officers of the Samuel Orr, and also transmit copy of report [No.3] of Captain R.N. Stembel, commanding gunboat Lexington.

Hoping my action may meet your approval, I am, most respectfully, yours,

R.J. OGLESBY, Colonel, Commanding Forces at Cairo.

Major General JOHN C. FREMONT, Commanding Dep't of the West, Saint Louis, Mo.