[Inclosure.]

HDQRS. CAVALRY DIVISION. SIXTEENTH ARMY CORPS,
Memphis, Tennessee, January 1, 1864.

Lieutenant Colonel W. H. THURSTON,

Assistant Inspector-General, Sixteenth Army Corps:

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Touching the destruction of the railroad at La Fayette, on the 27th day of December,and the escape of the rebel forces under Forrest, I would report that the Third Brigade of this division received orders to move to La Fayette and attack the enemy wherever found;that ample time was given in which to move La Fayette before the enemy could have crossed his whole force;and,further,that no disposition was shown by the brigade commander to press the enemy while there was a probability of preventing the crossing and escape of his whole force.

I would report Colonel W. H. Morgan, Twenty-fifth Indiana Infantry Volunteers,commanding Third Brigade, Cavalry Division, Sixteenth Army Corps,as inefficient.

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Respectfully submitted.

M. H. STARR,

Major 6th Illinois Cav., A. A. I. G., Cav. Div., 16th A. C.

No. 2.

Report of Colonel Edward Hatch, Second Iova Cavalry,commanding Second Brigade,of skirmishes at La Fayette and Collierville, Tennessee(27th.)

HEADQUARTERS SECOND BRIGADE, CAVALRY DIVISION,
Collierville, January 1, 1864.

Captain:I have the honor to submit the following report of the part taken by the detachments of this brigade which were left in camp when the command was ordered out during the recent advance of the enemy:

At 3 p.m.on the 24th of December, 1863,in compliance with orders received from your headquarters by telegraph, I ordered a detachment of 30 men, under Lieutenant Dunham,mounted on the wagon mules,to Macon, Tennessee They swam Wolf River about 7 miles northeast of this place,and proceeded to Macon,reaching there about daylight on the morning of the 25th,found no enemy in the vicinity,and returned to camp,arriving about 3 p.m.,25th December.

On the 25th December,received orders from General Hurlbut to destroy all the crossings of Wolf River immediately. Telegraphed the orders to Germantown and La Fayette,and sent details from Collierville to perform the duty. On the 26th and on the morning of the 27th December, repeated the orders, and supposed that they were obeyed, but have since learned that the destruction of the bridge at La Fayette was only partial.

About halt past 1 p.m., on the 27th December,received information that the enemy in large force was crossing the Wolf River at