Clay, on Dalton. The enemy advanced his picket 2 miles day before yesterday on Dalton road. His picket is now 3 1/2 miles south of Red Clay and at upper King's Bridge.

I have the honor to be, very respectfully, your obedient servant,

A. P. CAMPBELL,

Colonel, Commanding Division.

MOSSY CREEK, March 28, 1864.

General SCHOFIELD:

I have scouts just from Bull's Gap; they report rebel infantry nearly all gone, and are daily leaving the country. Cavalry at the gap not thought to be many; also squads of cavalry in all the gaps and roads between Bull's Gap and the bend of the Nola Chucky, 1 mile below the mouth of Lick Creek. They say the citizens told them the infantry are moving to Virginia, and in few days the cavalry will go to Kentucky. General Vaughn had pickets stationed 7 miles below Rogersville on Saturday and Sunday; the cars came to Bull's Gap Friday. The men are said to be deserting by hundreds and going to North Carolina, the roads being so closely guarded they cannot come this way.

R. A. CRAWFORD,

Chief of Scouts.

STEVENSON, March 28, 1864 - 3 a. m.

Major R. M. SAWYER:

I have your dispatch. Your orders to General Brayman and Veatch all right.

Write a note to superintendent of railroad in Nashville that I have been over all the road, and am of opinion that all loaded trains should make a continuous circuit from Nashville by way of Decatur to Stevenson, and back to Nashville over the old road with empty cars. A separate set of trains could run from Stevenson up to Chattanooga and beyond. Not a citizen or pound of private freight should be carried until all the troops are well supplied.

Inform Colonel Donaldson to the same effect, and that General Allen says the mules at Larkinsville, Woodville, & c., should be supplied with oats immediately.

Tell Colonel Donaldson that I find citizens and private freight carried on the cars, and the officers all along the road complain that they cannot get requisitions filled for forage or even clothing.

This must be remedied at once. I find at least a dozen locomotives here appearing idle, empty cars also, and am satisfied by making the circuit described the present stock of the road could do double the work.

If wood or water is needed on the new road, I will order my troops to provide any quantity necessary. Tell railroad superintendent he can make his permanent arrangements.

W. T. SHERMAN,

Major-General.