which we attempted, but after proceeding a short distance we suddenly came within forty yards of twelve or fourteen who were within twenty yards of the road holding their horses, who had not discovered us. Thinking it too hazardous an undertaking, we retreated about fifty yards, when they raised the war whoop, and three or four came after us at fall speed, and we only escaped by a precipitous flight, they following us some three miles. We returned to camp, and at 1 p. m. with an escort of three we started for Cottonwood again. When a little beyond where we saw the Indians the previous evening we found three citizens who had been killed, two of them scalped and horribly mutilated. The names of the unfortunate men, as far as I can learn, are a man by the name of John W. Potter, and an old man who had been staying with him at the Mountain House, name at present unknown. The other, name unknown.

Arriving at the station at sunrise, I sent out a team, had the murdern, and have just buried them. I immediately sent a detachment in pursuit, fearing the Indians had come down the South Fork, and were the same encountered by us on the 16th instant. The detachment remained out all day, having gone as far south as the foot of the timbered ridge, which is still covered with snow, and found that the Indians had come from the North and not from the South Fork. As far as could be ascertained the Indians had gone down the road in a northwest direction. I suppose them to be the same band the citizens found down the river a short time since, and that they number fifteen or twenty warriors. The detachment sent for Lieutenant Hand has just returned and found nothing of him. They report traveling down the main John Day's River, through a very rough mountainous country a distance of sixty-five miles, and returning by way of Alkali, having traveled 170 miles in four days. They report finding fresh Indian sign along the route, but saw none. In the morning I sent a detachment of ten men to Rock Creek to escort the Canyon City stage to this place, and citizens who are waiting there. From what I now know respecting the Indians, I fear the forces under my command will prove insufficient to afford the necessary protection to travelers and settlers, as they are known to be scattered along the road for sixty miles, and while after one party another follows in my rear. I respectfully suggest that the forces may be increased on this road, at least for the present. I could easily manage them with the number of troops I have if they would remain together, but they scatter in all directions, rendering it impossible to trail them with any degree of certainty. Both men and horses are much fatigued, having been almost constantly in the saddle for the past eight days. I will write again if Lieutenant Hand should arrive before I can send this off as the stage will not go down until the 24th.

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

H. C. SMALL,

Captain, First Oregon Cavalry, Commanding.

ACTING ASSISTANT ADJUTANT-GENERAL,

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

HEADQUARTERS CANYON CITY ROAD EXPEDITION,
Captain Watson, Oreg., November 20, 1865.

SIR: I have the honor to inform the colonel commanding the department that on the morning of the 13th instant I ordered a detachment of twenty-two enlisted men of Company G, First Oregon Cavalry,