This order is in truth the great lever used by the rebel Government for its army operations. Members, of the Southern section of it, which is under the control of General Price, can meet and confer with members of the Northern section under the control of Vallandigham with perfect impunity. They can meet as strangers, and yet recognize each other, and can confer with each other, even in public places, without danger of publicity or exposure. This department is filled with rebel spies, all of whom belong to the order. They come here, professedly as deserters from Price's army, take the oath of allegiance and then go to work to organize lodges and engage in forwarding to Price contraband supplies. This, I am satisfied, is the result of a well-settled policy of the rebel authorities. These men are given furloughs, or leaves of absence, for the express purpose of thus operating. Of course they are more dangerous, and able to accomplish far more injury in results than an organized and armed rebel army ten times their numbers in strength possibly could.

Another means of immense power for rebel operations which this order affords is the early and perfectly safe communication of important information between different places. On this point I can speak from my own knowledge and from my own experience. I have repeatedly had information, which I obtained from my agents, who are members of the order, several days before those not belonging to it or the public had any knowledge of it. For instance, the late retrograde movement of General Steele's army from Camden to Little Rock, Ark., was made known to me in this way three days before the intelligence reached here and was made known to the public. So, again, information of the contemplated raid of John Morgan into Kentucky, which is now in full realization, was communication to me at least ten days or two weeks ago. I was at the same time informed that his appearance in Kentucky would be the signal for the uprising of the members of the order in the various parts of the State to aid and assist him in whatever way they could. The intelligence which has reached us by telegraphic dispatches seems to verify the predictions thus made known and which came direct from members of the order.

I have taken the precaution to make such arrangements, in the event of the Government at Washington desiring to take immediate effective measures to capture the leading master spirits and break up this order in the loyal States on receiving the information contained in the report, to have at different points reliable persons who are in the order and through whom the object may be accomplished.

At Cincinnati I have an agent who is a member and making himself thoroughly familiar with the condition and operations of the order in Kentucky and Ohio, and also as far as he can in Michigan. His instructions are to proceed, after having obtained all the information that is to be gained at that point, to Detroit, ascertain the condition of things there, and keep me advised of them and of his movements from place to place. I annex some of his letters, marked ZZ.

At New York, Captain J. B. Devoe, U. S. Navy, is fully aware of its existence and is having a close watch upon its movements. He has with him several of the agents through whose efforts I have obtained much of my information in regard to it here. Though he has not made a full report of his discoveries there enough has already been found out from him to leave no doubt of its existence and active operations there. Discoveries have also been made by him which conclusively establish, in my mind, that the Abbe McMaster is one of the master spirits of the order in that city and that the person referred to by my