CITY POINT, VA., September 21, 1864-5.30 p.m.

(Received 7 p.m.)

Major General H. W. HALLECK,

Chief of Staff:

Has an inspector been sent to the Department of Arkansas to examine into affairs there? If not I will send an officer from here.

U. S. GRANT,

Lieutenant-General.

U. S. S. TALLAHATCHIE, New Orleans, La., September 21, 1864.

Commodore J. S. PALMER,

Commanding First Division, West Gulf Blockading Squadron, New Orleans, La.:

SIR: I have the honor to report having received information on the night of the 15th instant that twelve bales of cotton were coming out of the Blind River. I stationed a picket-boat in the mouth, which captured the following-named blockade-runners, with a small mail, viz: Theophile Fruchude, Jean Morin, F. Guilbeault, and Justin Kuffer, all of New Orleans. As soon as the officer in charge of the picket-boat demanded a surrender they threw overboard a small mail and a memorandum book,which was picked up in a few minutes afterward, not being went through. The book contains a supposed list of goods brought over by them, said list being made up of revolvers, percussion caps, and a large amount of quinine, drugs,&c. They acknowledge to have been buying cotton, having no permit for same. On the 17th instant I captured on the banks of Bayou Schinblon [Chene Blanc], Ascension Parish, 9 bales of cotton and a number of bags. In the bayou near this cotton there were flats, all made to move it across the lake. On the banks of the Amite River, the same instant, at the house of Samuel Leake, now prisoner in my possession, I captured 1 bale of cotton and 2 sacks; also revolvers, 1 keg of powder,and a number of small lots of powder, together with a large quantity of medicines,dry goods, hats, barrels of whisky, barrels of flour,salt,and about 20,000 percussion caps. The cotton captured by me is claimed as follows: Jean Morin, now a prisoner on board, claims four bales; Madam Leake,wife of Samuel Leake,one bale and two sacks; the balance remains unclaimed. I am credibly informed that Lieutenant Whet, of the Confederate service, buys ammunition, &c., from the house of Samuel Leake once a moth, taking the same to Clinton, La.

Very respectfully, your obedient servant,

T. J. LINNEKIN,

Acting Master, Commanding.

[First indorsement.]

SEPTEMBER 26, 1864.

Respectfully referred to General Canby for his perusal.

J. S. PALMER,

Commodore.