[Inclosure No. 2.]

METROPOLITAN POLICE DISTRICT, City of New York, ss:

John S. Young being duly sworn doth depose and say as follows:

J. K. Millner was arrested and brought to the detective office and remained there and at the marshal's office some two or three days before being sent to Fort Lafayette. I had repeated and detailed conversations with him. I had been long on his track and watching for the development of his schemes to arrest him, when he was arrested by the marshal.

Millner said that he had made an arrangement with Bethel Burton [and] Walker, now at Fort Lafayette, and a man by the name of Rooney, who fled the day Millner was arrested, by which he, Millner, Walker, and Rooney were to buy a patent rifle of Bethel Burton and manufacture and sell it to the leaders of the rebellion or to the Confederate Government; that a written contract was made between them; that he (Millner) and Burton had been to Richmond by way of Fortress Monroe and Norfolk, where he and Burton had exhibited the rifle to the military authorities there, and made a contract to manufacture them in Richmond - 40,000 [or] 50,000 of the rifles; that they had returned to New York to procure a part of the machinery and secure thirty mechanics to send to Richmond for the manufacture of the rifles. These were to be forwarded through Hatteras Inlet. They had made these arrangements and were about to send forward the machinery and men when the capture of Hatteras Inlet closed the communication of that route.

When he was arrested he was about paying Burton $15,000 on the purchase of the patent. He said we need not get affidavits and proofs against him; that his own statement would be sufficient to hold him. He said he was to be the medium of verbal communication between parties here and leaders at the South; that it would not do to write, and that was worth a plum in these times.

JOHN S. YOUNG.

[Sworn and] subscribed before me this 28th of September, 1861.

S. C. HAWLEY,

Chief Clerk.

413 BROOME STREET, NEW YORK, October 3, 1861.

Hon. W. H. SEWARD, Secretary of State.

SIR: Yours containing inclosures relating to the case of Robert R. Walker, of Brooklyn, now confined at Fort Lafayette [received]. I have taken some pains to inquire for evidence calculated to establish the guilt of Mr. Walker. I inclose all there is to be found I think, and beg leave to make the following report:

Robert R. Walker was arrested for being engaged in a scheme to furnish Burton's rifle to the rebels in insurrection against the United States Government. The proof against him consisted in the statement (not under oath) of J. K. Millner, of Virginia, now a prisoner in Fort Lafayette. His statement was to the effect Walker as a partner with himself and Burton. The particulars of the scheme as related by Millner are contained in the testimony which I had the honor to transmit in Millner's case. All other circumstances tend to establish the