From what information I can get I place the strength of this party of hostile Indians at forty or fifty in number, well armed; a desperate band, headed by a chief named Po-li-ni, a noted character in the Indian country. This is one of their haunts; our friendly Indians say they have occupied this camp for three or four years; the camp itself bears every evidence of this fact. They are undoubtedly the party that has committed so many depredations on the Canyon City road during the past winter and spring. I sent the captured horses to camp; turned over to the Warm Springs Indians eight of them claimed as their property. I have appropriated five more to remount soldiers whose horses were shot in the action and killed or wounded. Ten others were turned over to the quartermaster, to be used by the herders and packers; the balance of the lot I distributed among the Warm Springs Indians, and will require them to send them back to the reservation. These horses have all been stolen from the whites, and will probably be claimed at some time. With the large quantity of stock belonging to the command to be cared for in a hostile country I deemed a lot of horses of this description an addition that might embarrass us, and have made this disposition of them, hoping it may meet the approval of the general commanding.

Our casualties in this affair are: Second Lieutenant Stephen Watson, commanding detachment Company B, First Oregon Cavalry, killed; Privates James Harkinson and Bennett Kennedy, detachment Company B, First Oregon Cavalry, killed; and Corporal Dougherty and Privates Freeman, Henline, Level, and Weeks, detachment Company B, First Oregon Cavalry, wounded. Private Henline is severely wounded in the shoulder and will not recover under the months; the others are but slightly wounded and will be fit for duty in ten or fifteen days. One of our Indian scouts was killed, and Stock Whitley, their chief, dangerously wounded; the surgeon thinks he will recover. The citizen, Richard Barker, named in Lieutenant McCall's report, has been traveling with the command for eight or ten days for the purpose of joining a prospecting party somewhere here in this vicinity; I did not know that he had gone out with the detachment until I heard of his being wounded. His wound is a severe one, a fracture of the thigh bone caused by a rifle ball. He has a wife and family living at Salem, Oreg. The killed and wounded were brought to camp during the afternoon and night of the 18th. The dead were interred yesterday with appropriate honors; the wounded are comfortable and well cared for. In conclusion, I would state that the management of this affair on the part of Lieutenant McCall seems to have been prudent and careful; the intended surprise was only partially successful, the Indians taking the alarm in time to make good their retreat up the cliff 300 yards distant from their camp, and in the direction from which Lieutenant Watson was approaching. He (Lieutenant Watson) evidently did not know of the existence of the ledge upon which his platoon made the charge, as the ground was descending and extremely rough. He may have been precipitate and imprudent, perhaps, but his conduct on the whole was gallant and daring.

Very respectfully, your obedient servant,

JOHN M. DRAKE,

Captain, First Oregon Cavalry, Comman ASSISTANT ADJUTANT-GENERAL,

Headquarters District of Oregon, Fort Vancouver, Wash. Ter.