[Inclosure.] CAMP HOOKER, Near Stockton, November 1, 1862.

Lieutenant Colonel R. POLLOCK,

Commanding Camp Hooker, Cal.:

SIR: I have the honor to submit the following report:

In consequence of certain rumors received at this camp from various sources, concerning the open and avowed disloyality of a large portion of the population of Merced County and vicinity, and of the strong suspicion entertained by many loyal Union men of there being a secret armed organization in that section of country for the purpose of carrying out some treasonable design against the Government, I received verbal instructions from you to travel through that portion of the country as a citizen, for the purpose of eliciting what information it was practicable to obtain, in order that the true condition of affairs, if possible, might become known. In obedience to those instructions I left this camp on the 12th of October and proceeded to travel on horseback, in citizen's clothes, through the various settlements of that section of country for several days. While among those whom I knew to be disloyal (from information derived from reliable Union men) I found by careful questining that, though personally embittered against the Union cause, all expressed themselves as willing to pay the Government tax without any resistance or opposition, and many of them did not hesitate to say that they thought it extremely unwise for those whose sympathies were with the South to pretend to offer any opposition to the Government while living in a loyal State like California. I heard no one make use of any expression that would imply that there was anything like an armed organization among them. The Union men living in that vicinity say that several months ago many of them were very bold in giving expression to their treasonable feelings by cheering for Jeff. Davis and the Southern Confederacy and cursing the "Lincoln government," but that such expressions were confined chiefly to a low, ignorant, worthless set of men, who had a hot stake and the larger portion of whom have since left the country. Parties, consisting of some three or four of these desperadoes, are occasionally seen on horseback, armed with a rifle and pistol, ostensibly bound for the Colorado mines. But it is the opinion of many of the Union men that there is a rendezvous somewhere in the southern portion of the State, where they meet and arrange for an expedition across the country to Texas. There are several Union men living among them who are keeping a sharp lookout and try to catch every item that may escape them. Mr. Anderson, county clerk of Stanislaus Country, who has recntly moved to Snellingville, a Kentuckian by birth, but who from the-start has been a most genuine Union man, thinks there was evidently a design among the secessionists of that county several months ago to perfect a secret armed organization for treasonable purposes, but in consequence of the strong military force that was then being raised in the state they abandoned the idea. The same opinion was expressed by Mr. Wilson and Mr. Ayres, living on the San Joaquin River near the mouth of the Merced, both true and active Union men, who are watching very closely all the movements of those who they hase reason to believe are disloyal. All the reliable Union men with whom I conversed promised to forward any information they might obtain at the earliest moment. From what I could learn and observe, therefore, while traveling among them, I do not think that there is any difficulty to be apprehended with them, though it is very evident that