anywhere in the vicinity of Martinsburg would have to go within sight or sound of the Mills' Gap station. By ordered of General Averell, a picket of 12 men, commanded by a sergeant, is kept to protect that station. From the station Martinsburg the town of hedgesville and also Fairview Mountain can be seen, the latter some 3 or 4 miles east of the Potomac. My opinion is the station now worked are of sufficient importance to be continued, and although the party is small to establish stations of observation along the whole line of road until we are considerable re-enforced, as it is the intention of the Bureau of the Signal Corps that we shall be soon, yet our party is large enough to do more than this, and, if approved by the general commanding, I would respectfully recommend the establishment of a similar station near Cumberland. this can be done with our present force. I am not acquainted with the topography of this country, but I judge from consulting a map that a station could be located on the Middle Ridge Mountains, near the town of Springfield, which would command a view of nearly every road by which the enemy could approach the railroad in the vicinity of Cumberland or Green Spring. Such a station would probably require a company or two to protect it from incursions of the enemy. The signal party in this department will be of most service during the movement of troops, and with a moving force I think we could render very good service; but at the present time it appears to me that the foregoing suggestions embody the most service possible with our present force. I find that 10 men of the party are unprovided with horses and equipments. They would be of no service in the field dismounded, but I am informed that requisition for horses for them has been made by Captain Denicke. the general condition of the party is good and their appearance soldierly, and having seen some service already, I doubt not that every officer and man will endeavor by his acts to merit the approval of the general commanding.

I have the honor to be, very respectfully, your obedient servant,

FRANKLIN E. TOWN,

Captain and Chief Signal Officer, dept, of West Virginia.

CUMBERLAND, March 8, 1864.

Brigadier-General AVERELL:

You had better order Keeper's battery to beverly at once. Captain Harrison furnished Keeper with 40 good horses a few days since.

I will direct captain barringer to have him fully supplied as soon as practicable.

B. F. KELLEY,

Brigadier-general.

WHEELING, W. VA., March 8, 1864.

Captain THAYER MELVIN,

Assistant Adjutant-General:

CAPTAIN: I have the honor herewith to transmit a statement and recommendation in the case of Major Stephens, by Colonel Thoburn, his commanding officer. I have carefully examined the evidence adduced before the Court of Inquiry assembled to in vetigate the circumstances attending the capture of the forces under command