Bayou Grand Caillou, on the night of the 23rd instant. Captain moore, as you are aware, had been for some time ferreting out the smuggling going on at the mouth of this bayou, assisted by a man whom I had employed by the name of Todd. They returned from an expedition of that kind and reported to me that their identity had been discovered and that they had failed and barely escaped with their lives. Indeed I do not believe they would have allowed them to escape had it not been for the shrewdness and ingenuity of Mr. Todd. They reported that there was one Whitfield there who they were satisfied was some kind of a Confederate agent. My impression from their report and other information was that he was a rebel recruiting officer picking up such persons as were frightened off by our enrollment. I inclose Captain Moore's report made to me, marked A, Mr. Todd's report, marked B,* for the general's information. While I was digesting n my mind what steps further to pursue with this troublesome section of the country I received information from Mr. Decker, a scout whom you will remember the general sent to me and who is invaluable here, that Lieutenant Shafer had left the rebel camp with a party in boats via Bayou Salle and it was believed that he intended to make a raid upon the merchants of Houma by way of Grand Caillou. I immediately dispatched the company of cavalry stationed at Terre Bonne to Houma and sent Captain Moore with his company from this place to follow. I ordered him when he had arrived at Houma to make command of both companies and make a reconnaissance down the bayou; to destroy the smuggling crafts and to arrest any rebel recruiting officers or agents found there. I inclose a copy of the order given him marked C.* After he had been gone a few days i heard by rumor that Captain Moore, his officers and men, had seized a quantity of Louisiana rum and were on a drunken spree, committing various depredations, and that one of his men had attempted to rape a mulatto girl and had shot and killed her for resisting. I immediately sent a messenger with and order to Captain Moore to return; a copy is inclosed marked D.+ The messenger found the officers gone, but the senior sergeant opened the order and returned with the command. The sergeant reported that Captain Moore had taken all the officers with him, a sergeant and six men, in an open boat and had been absent from his command for four days, when he (the sergeant) started to return. His report is inclosed, marked E.

Yesterday evening I received from Lieutenant Thrall, commanding the guard at Houma, the inclosed report, marked F, which gives the final solution to this unfortunate affair. It appears that Captain Moore with the balance of his officers abandoned the command in a state of intoxication on the evening of the 23rd and was led by Raymond Luke to the camp of a rebel officer and his recruiting party and fell an easy prey. How Captain Moore could destroy Raymond Luke's smuggling boat as he did and then take him the same night for a guide can only be explained by his intoxication. But it appears that he allowed Luke to cover him with his blandishments and protestations of friendship and lead him and his party into the very arms of this insignificant but vigilant party of rebels; and it further appears from letters written by Captain Moore to his company, which Luke brought back with him, that Luke made him believe that it was all right and the affair only accidental. I believe that this Luke knew that this Captain Jefferson, who must belong to either the Twenty-sixth or Twenty-eighth Louisiana, stationed at Alexandria, was there recruiting,

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*Omitted, it being substantially the same as Moore's report.

++Not found.

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