Extract from Lieutenant B. P. Loyall's letter to Secretary of the Navy, of the same date.

Flag Officer Lynch telegraphs me to-day that he cannot procure transportation for me from Wilmington. We are in want of it here.

GENERAL ORDERS,
HEADQUARTERS CAVALRY CORPS,
ARMY OF NORTHERN VIRGINIA, Numbers 3.
March 11, 1864.

First Lieutenant Theodore S. Garnett, jr., having reported for duty in accordance with his companies, is hereby announced as aide-de-camp, Cavalry Corps, Army of Northern Virginia, and will be obeyed and respect accordingly.

By command of Major General J. E. B. Stuart:

H. B. McCLELLAN,

Major and Assistant Adjutant-General.

HANOVER JUNCTION, March 12, 1864.

General ELZEY:

Colonel Beale reports Kilpatrick's whole cavalry force, with six regiments negro troops, at New Dragon Bridge, constructing a bridge to Urbanna.

R. D. JOHNSTON,

Brigadier-General.

RICHMOND, March 12, 1864.

Honorable JAMES A. SEDDON,

Secretary of War, Richmond:

SIR: I have received a dispatch from His Excellency the President ordering me to report to the Department of War and disapproving of my conduct and that of Commodore Lynch in so nearly producing collision between the Army and Navy. I trust when the following statement is read, with the accompanying papers, it will be clear that i am in no way to blame in this matter.

I was first made aware of any claim made by the Navy Department which would require the detention of a ship, the Alice, on the 6th instant, by the agent of South Carolina approaching me (with your authority, releasing the Government claim), for permission for the Alice to leave, informing me at the same time that Mr. Peters, Navy agent, threatened to detain her. I sent for Mr. Peters and received the first intimation of the claim of the Secretary of the Navy. Though, under your letter by Major Bayne and the act of Congress regulating exports. I might have allowed the vessel to go, to avoid difficulty I telegraphed you for instructions, at the same time informing Mr. Peters that the general commanding alone had the power or authority to regulate the motions of these vessels, and application should be made to me to stop them, as it was in all cases to permit them to leave. You replied that your release of the Alice referred only to the War Department, and directed the claim of the Navy to be sustained. I accordingly detained the ship, informing Mr. Peters and yourself (see letter to Mr. Peters, page 210, Official Record, Department Cape Fear). No mention was made of steamer Hansa.