ham, assistant special agent at Natchez. The extracts furnished are the material points contained in the communication.

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

BENJ. F. FLANDERS,

Supervising Special Agent Treasury Department.

[Inclosure.]

NEW ORLEANS, May 18, 1865.

Honorable B. F. FLANDERS,

Supervising Special Agent Treasury Department:

I desire to make a statement of certain facts which were recently communicated to me by the officer in command at Rodney, Moss. There are several thousand bales C. S. A. cotton within a radius of twenty miles of Rodney. It is scattered about among the plantations, and in some instances there are large collections of it at certain points. Since the formal surrender of Dick Taylor's army this cotton is regarded as common property, to be appropriated by private parties who can command means of transportation. There is an unusual amount of activity among cotton speculators of late. Colonel Wright told me he knew of 1,000 bales of cotton piled up in a swamp. While at Rodney I found six bales of cotton coming into own for Colonel Wright. I took charge of the cotton for investigation. I also found about 300 bales of cotton claimed by one Dr. ---, concerning whom Colonel Earle says he made a contract with the rebel authorities to deliver so much medicine for so much cotton. His cotton is coming in. I told Colonel Earle to hold that and all other cotton that should come in, and not deliver it without proper authority.

A. P. DILLINGHAM.

[Indorsement.]

HDQRS. MILITARY DIVISION OF WEST MISSISSIPPI,
New Orleans, May 30, 1865.

Respectfully transmitted to Lieutenant-General Grant, commanding Armies of the United States.

There are over 200,000 bales of cotton that belonged to the late rebel Government within the limits of the division east of the Mississippi, the greater part of which will be lost to the Government without the aid of the army. Under your instructions of the 28th instant I have revoked all orders restraining the movements of this cotton.

E. R. S. CANBY,

Major-General, Commanding.

C. S. FLAG-OF-TRUCE-BOAT CHAMPION,

Mouth of Red River, May 19, 1865.

Major General E. R. S. CANBY, or

COMMANDING OFFICER U. S. FORCES, &C.:

GENERAL: Lieutenant-Colonel Sprague, U. S. Army, having borne to General E. K. Smith, C. S. Army, a communication from the Federal authorities, received and carried away from our lines certain memoranda* and proposals contemplating and offering negotiations to be entered into by Governor H. W. Allen, of Louisiana, on behalf of the Confederate authorities. It may be claimed, I think, with propriety, that, in virtue of the acceptance by Lieutenant-Colonel Sprague, U. S.

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*See Part I, pp. 189-192.

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