About 1.30 p.m. to-day I discovered the enemy retiring. My command is following closely. Their rear guard left the town about 12 m., my advance arriving at 3 p.m. General Roddey left with 600 men at 3 a.m. this morning for their rear, and is now on their flank, I suppose, about Cherokee Station, 16 miles west of this point. The enemy's force consisted of two divisions, commanded by Osterhaus and Morgan L. Smith, Blair commanding all. They evacuated in consequence of finding the railroad so destroyed. Their intention was to rebuild the road or to cross at this point, but received orders to return last evening. The commanding officer of the provost guard stated to the gentleman at whose house he staid that they were returning to Eastport to take transports,and that the Tennessee and Cumberland were in good boating order-the latter to Nashville. The general impression among them was that they were going to Nashville and to re-enforce Thomas' army at Chattanooga.

The Memphis Bulletin of the 24th states that Grant has been assigned to the command of all departments west of the Alleghany with plenary powers. Thomas takes Rosecrans' place, who is ordered to Cincinnati to report to Washington by letter. It is supposed Grant will go to Chattanooga.

They acknowledge a loss of 100 killed and wounded on the 22nd [21st] and put my force at 8,000. General Ferguson has not been heard from yet. I will report further as soon as their movements indicate their intentions clearly.

I regret to report that the gallant Colonel Forrest was severely wounded on the 26th. He had to be left in Tuscumbia and is now paroled.

I am, colonel, yours, respectfully,

STEPHEN D. LEE,

Major-General.

Lieutenant Colonel GEORGE WILLIAM BRENT,

Asst. Adjt. Gen., Army of Tennessee, near Chattanooga.

HEADQUARTERS CANE CREEK,
Ten Miles West of Tuscumbia, October 30, 1863-7.30 a.m.

COLONEL: I have the honor to report, for the information of the general, that my command attacked the enemy at daylight yesterday morning, and after a brisk skirmish I discovered that the enemy were in force at their camp near Cherokee Station. Their tents were standing, and my scouts could see no movement indicating breaking up of their camp. My scout report (and I consider it perfectly reliable) that about a division of the enemy have crossed at Eastport,and last evening their advance was within a few miles of Florence. Two steamers and flat-boats were at Eastport crossing troops. There is but little doubt now that a column of the enemy will march north of the Tennessee, via Florence and Huntsville. I am in doubt whether the entire force will go by that route; will inform you as soon as reliable information is received. The force in my front is probably covering the crossing. Some of my scouts still report the enemy working on the railroad east of Bear Creek, and the cars have crossed the Bear Creek Bridge.

Brigadier-General Ferguson attacked and routed the Tory Alabama Regiment, and thoroughly scattered it over the country, capturing two pieces of artillery, some 40 prisoners, a number of horses,