LEXINGTON, KY., July 15, 1862.

General FINNELL, Frankfort, Ky.:

Morgan, with more than 1,000 men, came within a mile of here and took the Old Frankfort road. This dispatch received from Midway and is reliable. The regiment from Frankfort had better be recalled.

WARD.

I receipted for this message, and again manufactured a message to confirm the information General Ward had received from Midway, and not knowing the tariff from Frankfort to Lexington I could not send a formal message. I waited until the circuit was occupied and then broke in, appearing greatly excited, and told those using the wire I must have the circuit, and commenced calling Lexington. He answered with as much gusto as I called. I telegraphed as follows to Lexington:

Tell General Ward our pickets just driven in. Great excitement. Pickets say force of enemy must be 2,000.

FRANKFORT.

It was now 2 p. m. and General Morgan wished to be off for Georgetown. I run a secret ground connection and opened the circuit on the Lexington end. This was done to leave the impression that the Frankfort operator was skedaddling or that Morgan's men had destroyed the telegraph.

We arrived at Georgetown at sundown. I went to the telegraph office, found it locked; inquired for the operator. He was pointed out to me. I hailed him and demanded admission into his office. He very courteously showed me into his office. I discovered the instruments had been moved. I asked where they were. He replied that the had sent them to Lexington. I asked him what time he had Lexington last. He said 9 o'clock and since that time the line had been down. I remarked that it must be an extraordinary line to be in working condition when it was down, as I heard him sending messages to Lexington when I was at Midway at 1 o'clock. This was a stunned; he had nothing to say. I immediately tested the line by applying the ends of the wires to my tongue and found the line O. K. I said nothing to him, but called for a guard of two men to take care of Mr. Smith until I got ready to leafy town.

I did not interrupt the line until after tea, when I put in my own instrument, and after listening for an hour or two at the Yankess talking I opened the conversation as follows, signing myself "Federal Operator," as I had done before successfully at other places:

To LEXINGTON: Keep mum. I am in the office reading by the sound of my magnet in the dark. I crawled in when no one seen me. Morgan's men are here, encamped on Dr. Gano's place.

GEORGETOWN.

To GEORGETOWN: Keep cool; don't be discovered. About how many rebels are there?

LEXINGTON.

To LEXINGTON: I don't know. I did not notice, as Morgan's operator was asking me about my instruments. I told him I sent them to Lexington. He said, "Damn the luck," and went out.

GEORGETOWN.

To GEORGETOWN: Be on hand and keep us posted.

LEXINGTON.

To LEXINGTON. I will do so. Tell General Ward I will stay up all night if he wishes.

GEORGETOWN.