Sunday (6th), the enemy appeared in sight at Patterson's maneuvering all day and posting their pickets on the south of the mountain. Sunday night at 12 o'clock they commenced throwing shell, under cover of which they burned a mill near the gap.

Monday, General Shackelford sent a flag of truce demanding a surrender, which, as I was informed, was conditional. It was denied, and the enemy threw a few shells at 3 p. m. The next day the truce and demand were renewed, but this time unconditional. Forces in large numbers were seen coming on the Kentucky side, estimated at from 10,000 to 30,000 under Generals De Courcy and Burnside. They attacked our pickets on the Harlan road about 1 p. m., and brisk skirmishing continued until about 4 p. m., when another armistice was agreed upon, which expired at 12 o'clock Wednesday, during which time the troops were ordered to cook 5 days' rations, preparatory to action. Twelve o'clock came and went and no shelling, but two flags were sent to the Kentucky side-one to General De C[ourcy] and one to General B[urnside]; also one to General S[hackelford], on the Tennessee side, and about 3 p. m. the garrison, consisting of the Sixty-fourth Virginia, Sixty-fourth and Sixty-second North Carolina, Fifty-fifth Georgia, Kain's battery (six pieces), Barnes' battery (four pieces), and Hunter's battery (two pieces, mountain howitzers), and the whole command, numbering about 1,600 or 1,800 men, with about twelve days' rations, were surrendered by Brigadier-General Frazer to the Federal forces.

Respectfully, &c.,

August B. COWAN,

Captain Company F, Sixty-second North Carolina Regt.

Captain J. G. MARTIN,

Assistant Adjutant-General.

[Indorsement.]

SEPTEMBER 25, 1863.

Further information required to judge of this affair.

J. D[AVIS].

Numbers 33.

Report of Lieutenant Thomas O'Conner, Kain's (Tennessee) battery.

CAPTAIN: Being in command of Kain's battery of field artillery, I had in charge six guns, four of which constituted the battery proper of the company, and two (a 6-pounder and a 12-pounder piece) belonging to the post. For the four guns I had the usual allowance of 200 rounds of ammunition, but for the other two I had only 65 rounds for the 6-pounder and 35 rounds for the 12-pounder. This ammunition was all of inferior quality and could not be relied upon.

I was at General Frazer's headquarters when the troops stationed to defend the mill at the south foot of the mountain were attacked and run in. They were completely demoralized and panic-stricken. They stated that they had been attacked by the enemy's whole force, and when asked where their officers were, replied that they did not know what had become of them. General Frazer ordered them back