and will send the remainder, with the prisoners, to you by first opportunity. As my force is rather small, I would be glad if some small scouting party from your command, coming in this direction, could take them back, in case you require them; they are small cattle. One of these prisoners states that at the time they left all the rebel cavalry was on the other side of Holston, but that they expected to meet their command at Morristown about Wednesday (to-day).

Learning from Union citizens that a brigade of rebel cavalry had entered Mosier's Mills at about dark yesterday, and that a regiment was posted at Franklin's, near mouth of Chucky-the first part of which information I have had reason since to doubt-I deemed it best to move my command to this point, which I reached at 1 a.m.

This morning I have sent a lady to Mosier's Mills, whose report I shall expect this evening. I have also sent a scouting party of 10 men toward Morristown. From these I have heard that they fell on the track of a rebel scouting party of 40 coming from the direction of Morristown, on the Dandridge road. The 10 men are following them, and I have sent a company to near Dandridge to intercept them.

I have also sent a single scout to Mossy Creek. He reports at 2 p.m. that no rebels are there, but that Union citizens informed him there was a considerable force-one said lying in ambush-about 3 miles above Mossy Creek, near Talbott's Station, on the Knoxville road. This is also corroborated by citizens who have come in to me here. If this is so, and you have a brigade at New Market, I would like to have it led by the Panther Springs road to Panther Springs, 4 miles in rear of Talbott's Station. I have been over this by-road and know it. If this could be done, I believe the enemy could be damaged considerably.

3.20 p.m.

My scouting party sent toward Dandridge reports that they are within 3 miles of that place, and that 30 rebel cavalry are in Dandridge. He also reports a rumor that a brigade was approaching Dandridge from a road running from mouth of Chucky to Dandridge, which I do not credit.

From Newport my scout reports 100 rebel cavalry in that vicinity. Forty staid at Gorman's Church, 1 1/2 miles south of Newport, on night of 21st. They have arrested 4 conscripts at Wilsonville. My scout from Greeneville has not yet returned.

I am, general, yours, respectfully,

WM. J. PALMER,

Colonel, Commanding.

Brigadier-General ELLIOTT.

P. S.-Shall I report to you or to General Sturgis direct?

[Indorsement.]

HEADQUARTERS CHIEF OF CAVALRY,
New Market, December 23, 1863-7.30 p.m.

Respectfully forwarded.

From 150 to 200 rebel cavalry drove back a scouting party from my command. Colonel McCook did not get the order in time to send out the brigade to-night. I will send it out at daylight to-morrow. Colonel Wolford has crossed, and is in camp near my command.

W. L. ELLIOTT,

Brigadier-General.