[OCTOBER 3, 1863.]

Statement of Thomas Shaw, Company G, Third Indiana Cavalry:

I left these headquarters Tuesday a week ago with a dispatch for General Burnside. I reached Athens on Wednesday, from which place the dispatch was sent by telegraph to General Burnside, who was then at Knoxville. I remained with Colonel Wolford two days in Athens, when he fell back to Loudon. Colonel Wolford would not consent for me to come back until Monday. The rebels came within 2 miles of Loudon, skirmishing with Wolford and Byrd. The rebels had two or three brigades and two or three batteries of light artillery. From Loudon, by the way of Kingston, I intended to make Smith's Crossing, but before I reached that point I came upon the rear of the Fourth Ohio Cavalry. This was Wednesday evening about 9 o'clock. About this time the regiment was attacked, front and rear. The colonel tried to make his escape up the mountain, but failed. He countermarched 10 or 12 miles and went to Pikeville. He reached Pikeville with three companies; the remainder were either captured or made their escape by some other road to Burnside's army. The regiment was surrounded at one time. The rebels were supposed to be in force at Smith's Cross-Roads. Citizens reported that they had been crossing the river all day. Our men had been fighting at Salem on Wednesday morning. I stopped last night at Dunlap, in Sequatchie Valley, about 15 miles from this place. About 4 miles from the foot of the mountain the rebels attacked our train, and destroyed all the wagons in the valley and on the mountain. I saw the smoke. I saw about 1,000 rebels myself, and more were reported in the rear. The first attack was made this morning between 8 and 9 o'clock. The teamsters on the mountain cut their mules loose. Three companies of Kentucky cavalry went to the support of the wagon guards, and were reported to be captured. Two brigades of cavalry were reported in that neighborhood.

SPECIAL FIELD ORDERS, HDQRS. DEPT OF THE CUMBERLAND,

Numbers 263. Chattanooga, Tenn., October 3, 1863.

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II. Brig. General W. F. Smith, having reported for duty, is announced as chief of engineers of the department, and all engineer officers will report to him.

III. Brig. General J. St. C. Morton is assigned to the command of the Pioneer Brigade, and will perform such other duties as may be assigned him.

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VI. During the absence of Lieutenant-Colonel Hodges, chief quartermaster, his duties will devolve upon Lieutenant-Colonel Mackay, chief quartermaster, Fourteenth Army Corps, to whom all reports, &c., will be addressed.

By command of Major-General Rosecrans:

HENRY M. CIST,

Lieutenant and Acting Assistant Adjutant-General.