ordered abandoned, and the garrison to come within the intrenchments here, which was done without loss. Hearing of the failure here, General Martin retired with his forces, capturing I gun and leaving 1 of his own, a much better piece, that he was unable to get away. He also captured a few prisoners. The loss, however, on our part was trifling, and the damage to the railroad so little that in a few days everything was repaired. With a few exceptions the conduct of the officers and men of the command was admirable during the whole affair. The case of Captain Conwell, Second Massachusetts Heavy Artillery, mentioned in the report* of Colonel Jourdan, will probably be investigated before a court-martial. I ordered his arrest as soon as I found him here, as he could make no satisfactory explanation of his presence here.

At no time, I suspect, during the present was has the utility of the military telegraph and the signal corps been more fully demonstrated than during this late attack. The attack had scarcely commenced at the outposts when the telegraph had not only informed me of all that was going on in front, but the whole line of posts to Morehead was placed on its guard, and during the day the enemy were immediately around the city the signal corps kept us advised of the smallest movement of the enemy at any point of the line. I cannot speak too highly of these two corps.

I am sorry to be obliged to state that Lieutenant-Colonel Fellows and 8 other officer and 63 men, of the Seventeenth Massachusetts Volunteers, were captured. The enemy by crossing Batchelder's Creek at points above and below, where they were stationed to check the advance, came upon them in flank and rear in overwhelming force and captured them. I am sorry also to record the death of Lieutenant Zantte, of the One hundred and thirty-second New York Volunteers, of Colonel Classen's command, one of the gallant defenders of the Neuse bridge, who was killed at that place.

I will also remark here that the citizens turned out nobly and took the place of the provost guard, thus liberating an additional force for duty in the intrenchments. A force of nearly 900 negroes were also quickly armed, and this force I placed under the command of Captain Bartlett, of the Twenty-seventh, Massachusetts Volunteers, who organized them into companies, and they did excellent service. The list of casualties I inclose herewith, together with the report of Colonel Jourdan and those of some of the regimental commanders.

I am, sir, very respectfully, your obedient servant,

I. N. PALMER,

Brigadier-General U. S. Volunteers, Commanding.

Major R. S. DAVIS,

Asst. Adjt. General, Fortress Monroe, Va.

[Inclosure.]

CASUALTIES.

Forces and defenses of New Berne. -Killed, officers, 1; men, 8. Wounded, officers, 2; men 10. Missing, officers, 12; men, 293. Total loss, 326.

Sub-district of Beaufort. -Killed, men, 4. Wounded, men, 11. Missing, men, 52. Total loss, 67.

Grand total, 393 officers and men.

I. N. PALMER,

Brigadier-General, Commanding.

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* Seer p. 77.

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