No. 3. Report of Captain Julius Fosses, Assistant Inspector-General of Cavalry.

OFFICE ASSISTANT INSPECTOR-GENERAL OF CAVALRY, Louisville, Ky., June 30, 1864.

GENERAL: I have the honor to submit the following report:

On the evening of the 9th instant a telegram was received by Lieutenant Colonel Thomas B. Fairleigh, commanding at this post, that the guerrillas had attacked the train on the Lexington and Frankfort Railroad, and that Morgan was marching his command against Lexington. The two reports led us to believe that this post would be attacked, for surely nothing could be more acceptable to the marauders than our well-stocked commissary and the stores of our citizens. The post was almost entirely destitute or the means of defense, Colonel Fairleigh having, in accordance with orders from his superiors, sent all the soldiers to the front. I first called on the Louisville Dragoons to volunteer as scouts, and on the morning of the 10th instant dispatched twenty-five of them on the Shelbyville pike. They returned at night, reporting no enemy this side of Middletown. The same day Major J. S. Edwards, Second Indiana Cavalry, arrived from Indianapolis with a detachment of veterans. At the suggestion of Lieutenant-Colonel Fairleigh I had these men mounted and equipped, also detachment of Ninth Pennsylvania Cavalry, under Colonel Jordan, and First Wisconsin, under Captain Jones, who arrived about this time. The Ninth Pennsylvania Cavalry, under Colonel Jordan, were ordered to proceed toward Frankfort by the way of Shelbyville, with instructions to report by courier in case they found the enemy. The rest of the forces continued to scout the country in every direction until the evening of the 16th instant, when we received word from Shelbyville that Jesse had passed through that place about 4 p. m., and was proceeding toward Bardstown.

On the morning of the 17th instant I sent Major Smith, Ninth Michigan Cavalry, in command of 150 men, toward Bardstown, and at the same time sent about 50 men on the Taylorsville pike with orders to scout the country thoroughly and report as soon as practicable. At the same time Colonel Fairleigh sent a detachment of infantry under Lieutenant Driskill to Bardstown by railroad. The detachment sent on the Taylorsville pike returned in the evening, and reported that Jesse's entire command had crossed at Taylorsville en route for Bardstown. Knowing that Lieutenant Driskill was already at that place and that Major Smith was near there, I expected the entire gang would be captured, and was surprised at receiving the following telegram from Major Smith:

BARDSTOWN, June 18, 1864-6 p. m.

I arrived here at 3 p. m., having traveled sixty-five miles since 6 o'clock. Lieutenant Driskill surrendered his men without firing a gun. The rebels had few arms and no ammunition, and could not fight. If he had held out, we would have captured and broken up the band. They left here at 8 a. m., and were at Boston at 3 p. m. They number 150. A major with 150 men of Ninth Pennsylvania Cavalry was at Chaplin at noon, going to Lawrenceburg. Send orders.

DE WITT C. SMITH,

Major Ninth Michigan.

I answered by direction of Colonel Fairleigh:

Scour the country; act according to your judgment and information, and report.

On the 20th I received the following: