gan between our pickets and an advancing line of the enemy's skirmishers. At first our pickets were compelled to fall back, but on reaching the railroad in front of our works they succeeded in checking the advance of the enemy, when quite a sharp exchange of shots took place, the artillery in my advanced work taking part in the skirmish. At 12 o'clock the enemy had retired, and all was quiet. My pickets afterward occupied their former line.

The casualties in this division were 3 men of the First Kentucky Infantry slightly wounded.

Very respectfully,

JOHN M. PALMER,

Major-General.

HDQRS. THIRD DIVISION, FOURTEENTH ARMY CORPS, Near Chattanooga, September 25, 1863.

Major-General PALMER,
Commanding Second Division, Twenty-first Army Corps:

GENERAL: If you have done with the intrenching tools I lent you the other day, I would wish them returned as soon as possible, as I wish to complete the intrenchments in my front.

Very respectfully,

J. M. BRANNAN,

Brigadier-General, Commanding Division.

[Indorsement.]

I am using every tool, trying to complete two internal traverses which are esteemed of great importance. If I send back those tools my work must stop. Will do so if you think best, but I trust to complete the work during night.

CRUFT.

HEADQUARTERS SECOND DIVISION, RESERVE CORPS, Stevenson, Ala., September 27, 1863.

Major FULLERTON,
Assistant Adjutant-General:

MAJOR: The troops guarding Government saw-mill near Larkinsville, Ala., consisting of Captain Latham's company, First Alabama Cavalry, and some 20 men of the Fourth Indiana Cavalry, under command of a lieutenant, were attacked by a band of neighborhood guerrillas this morning about daylight. They disgracefully ran away, leaving all Government property in the hands of the enemy. Some 40 of Captain Latham's company were captured; the remainder are scattered through the mountains. None were either killed or wounded, as far as I can hear. A small force from here was immediately sent out by railroad. They found the mill injured but very slightly. The mill will be put in running order by Captain Warren, post quartermaster, in a few days. As this mill is and has been of immense value to the Government, a force for its protection will be kept there. I shall arrest some 10 or 12 of the most prominent secessionists in the neighborhood of the mill, and hold them responsible for any further damage.

I am, major, very respectfully,

JAMES D. MORGAN,

Brigadier-General.