days, and I propose to take the prisoners up at once. The 600 prisoners of war (rebel) arrived yesterday morning in the U. s. steam transport Crescent, and are now in the harbor.

During the passage of the Crescent to this place a circumstance happened that obliged me to take immediate action upon her arrival here. The vessel, while off Cape Romain, on the night of the 23rd instant, separated from her convoy, the U. s. gun-boat Admiral, and deliberately ran on the shoals, the night being very clear and moonlight. One prisoner escaped by jumping overboard and succeeded in swimming ashore, it being only about 100 yards distance when the vessel struck. The report of the circumstances connected with this occurrence convinced me that there was something culpable in the conduct of the captain and second mate, and I have ordered a court-martial, which is now in session, for their trial.* I strongly suspect that they were influenced by bribes taken or accepted from the rebel prisoners to run the vessel ashore in order to allow them to escape.

The health of the department is not so good as it was. The sickness is increasing, but are principally cases of a malarious character. Every effort is being made to preserve the health and comfort of the men as far as possible.

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

J. G. FOSTER,

Major-General, Commanding.

Major General H. W. HALLECK,

Chief of Staff.

HEADQUARTERS DEPARTMENT OF THE SOUTH,
Hilton Head, S. C., September 19, 1864.

GENERAL: I have the honor to report the following operations in this department since my last report to you:

The operations in the Northern District are progressing slowly. Requisition has been made for ammunition, but as it has not been filled as yet, I have been obliged to decrease the fire from the batteries on Morris Island. The fire on Sumter has almost entirely ceased in consequence, and the rebels are now taking advantage of the quite by repairing that work. They have also a number of sharpshooters with telescopic rifles, who annoy working parties very much, so much so that but little work can be done, in the daytime in the front batteries on Morris Island. The enemy's works in that district are being put in a strong defensible condition as rapidly as possible. The enemy have lately received large re-enforcements in the way of negro laborers from the interior of the State, and have them now actively employed in repairing their old and building new batteries. The department now is strictly on the defensive, the new batteries being very nearly completed, and the old being in the course of through repair.

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*The captain (Daniel D. Latham) and mate (William Baxter) were tried by general court-martial and found guilty of "neglect of duty." The former was sentenced "to be reprimanded in general orders," and the latter "to pay a fine of one hundred dollars." The proceedings, findings, and sentences were approved by Major-General Foster in General Orders, Nos. 126 and 127, headquarters Department of the South, August 31, 1864.

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