Our troops behaved most gallantly under a most severe fire of heavy rifled guns and shell from guns of enormous caliber from the shipping of the enemy.

The loss on both sides is heavy. As soon as I have time I will send the details of the fight and do justice to the gallant men who proved their devotion in the bloody contest.

Two guns of the enemy were found spiked at the hospital in front of this position and several caissons were destroyed by him in his flight, and a great quantity of ammunition was thrown into the swamps and partially injured or destroyed.

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

J. BANKHEAD MAGRUDER,

Major-General, Commanding.

Colonel CHILTON,

Assistant Adjutant-General.

FAIRFIELD RACE-COURSE, August 13, 1862.

GENERAL: I have the honor to transmit my report of the part borne by my command in the operations about Richmond during the week ending July 1, inclusive. This report has been delayed for the reception of those from subordinate commanders. I have omitted many things which might have been stated, but the usual length of the report forbids further details. There are other orders and communications in my possession, which are retained for the same reason.

I beg leave to refer to two explanatory notes of Generals Mahone and Wright, herewith inclosed, and to request that my report be forwarded to the President at the very earliest moment, with such remarks as justice to the service and to me may dictate.

As the President has done me the honor to communicate to me directly the grounds upon which I have been recalled I have prepared a duplicate of my report for his immediate perusal, in order to obtain, with as little delay as possible, if that report be satisfactory, my restoration to the command of the Trans-Mississippi Department.

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

J. BANKHEAD MAGRUDER,

Major-General.

General LEE,

Commanding Army of Northern Virginia.

[Inclosure.]

RICHMOND, VA., August 12, 1862.

SIR: About June 25 I received from Lieutenant Colonel R. H. Chilton, assistant adjutant-general, on the staff of General Lee, commanding the Army of Northern Virginia, an order giving a general plan of operations about to be undertaken against the enemy, whose troops occupied the right and left banks of the Chickahominy, the greater number being immediately in front of the lines occupied by me and the division of Major-General Huger on my right.

This directed me in general terms to hold my position in front of the enemy against attack and at all hazards; to make such demonstrations as to discover his operations, and in case of the abandonment of his intrenchments to pursue him closely.