[Sub-inclosure Numbers 1.] HEADQUARTERS SPECIAL SCOUTS, Natchez, Miss., August 30, 1864.

Lieutenant SMITH,

Actg. Asst. Adjt. General, U. S. Forces, Natchez, Miss.:

SIR: I have the honor to make to you the following report in regard to my going to the house of Mr. Shields, near Natchez, Miss., August 29, 1864:

I had been informed at different times that he was a radical Confederate, and that he assisted the Confederates from time to time, and if I would search the house and premises I would find plenty of arms and ammunition. My informers did not know whether they had a permit to carry them or not. Early in the morning of the 29th I sent Sergeant Dougherty and Private Porter, my command, with instructions to inquire if Mr. Shields had had a permit to keep his guns, but to treat them politely and use no violence. In about two hours they returned and reported that there were armed men in the house, and that they would give them no satisfaction about the arms. I ordered him to take four more men and go back and arrest the parties and bring them to town. They returned and were again refused admittance. Mr. Dougherty sent back to know if he should force an entrance, and I sent him word to wait until I arrived. As soon as my horse was saddled I started out. I had got nearly to the picket-lines, when I met my men coming in under guard. I asked the meaning of it, and they said they were ordered under arrest by Lieutenant Willis, commander of the picket guard. I told the officer that the men in his charge were my men, and if had no objection I would take care of them, as they were only carrying out my orders. He made no objection, and I started on and told my men to follow, which they did. When we got to the house of Mr. Shields, I left my men back a few steps and went up alone and rang the bell. I saw some one come to the door and look through the side lights. I asked him if that was Mr. Shields, and he said it was not. I asked him if Mr. Shields was in the house; he said that he was, and wanted to know what I wished of him. I told him that I had good reason to believe that they had arms and ammunition in the house that was intended for the Confederate army, and if they had arms and ammunition without property authority that I intended to take them to Natchez. They still refused admittance. I told them if they would deliver up the arms and ammunition, or the permit, I would not enter the house. About that time one of my men told me to look through the window; that there was a man going to shoot. I looked through the side light and saw a man with a gun pointed at the door. I ordered my men at the window and door, and told the ladies that were on the porch if they would open the door and the men surrender I would not hurt one of them, but if they would not I should break the door open, but they still refused. I then ordered the men to break open the door. The second time the door was struck they fired. As soon as they fired I ordered my men to fire. We fired four or five shots, when they said they would surrender. I got 1 revolver, 2 shotguns, 1 rifle, and about 200 rounds of cartridges.

In the afternoon, in accordance with orders from your headquarters, I returned and searched the house. I found 9 pairs of bullet moulds; 1 pair for making minie-balls. Some of the cartridges were only