pated an easy conquest and one of great political importance, as this ship contained almost all the Texans out of the State who had proved recreant to their duty to the Confederacy and to Texas. The pilot-boat was allowed to get close to the ship, when the boat was hailed and the pilot ordered to come on board. Captain Payne answered that he thought there were rather too many men to trust himself to; whereupon he was directed to come on board or he would be fired into. He went on board as ordered, and soon after the steamer sailed in all haste seaward, leaving the pilot-boat and hands to return to us.

I am thus particular in this narration, as the friends of Captain Payne fear that he may meet with foul play from them enemy. I shall ascertain, through Commodore Bell, his fate, and act accordingly. Smith, the deserter, was tried regularly the next day before a general court-martial, and being convicted of deserting to the enemy, was publicly shot in Galveston in accordance with his sentence. The proceedings, which were formal in all respects, legal and regular, are forwarded.

At the time of these occurrences i received through Colonel [W. G.] Webb reliable information of an insurrection among the Germans in Colorado, Fayette, and Austin Counties, 800 being reported in arms to resist the conscript law and the State draft. I immediately ordered the Arizona brigade, with a section of artillery, to the disaffected region, declared martial law in these three counties, and had the ringleaders arrested and lodged in jail. The rest yielded, and tranquility and obedience to the laws are now prevalent.

Major Webb contributed much by his personal activity and influence to produce these results, and I earnestly recommend him to the President for the appointment of assistant adjutant-general, with the rank of lieutenant-colonel, to be stationed in the disaffected regions, and to take charge of the business growing out of these affairs and those of the militia. He was an officer of the old Army, and colonel under General Taylor in the Mexican war.

The German ringleaders above mentioned have been turned over to the civil authorities for trial.

I have the honor to announce that the whole coast and islands are now in our possession and that the Rio Grande is strongly occupied.

I am, very respectfully, your obedient servant,

J. BANKHEAD MAGRUDER,

Major-General, Commanding.

General S. COOPER,

Adjutant and Inspector General, Richmond, Va.

GENERAL ORDERS, HDQRS. DIST. OF TEX., N. MEX., ANDARIZ. No. 37. Houston, Tex., March 3, 1863.

The following letter of thanks from Lieutenant-General Holmes, commanding Trans-Mississippi Department, is published to the officers and men of this command:

HEADQUARTERS TRANS-MISSISSIPPI DEPARTMENT, Little Rock, February 7, 1863.

Major GeneralJ. B. MAGRUDER,

Commanding District of Texas, &c.:

GENERAL: Your letter, announcing the capture of a portion of the enemy's fleet by the forces under your command, was received yesterday, and I am directed by the lieutenant-general commanding to congratulate you on the successful issue of the expedition against Galveston, and to return his thanks to yourself and the officers