[Inclosure Numbers 3.]

NEW ORLEANS, LA., February 25, 1864.

Captain S. CALDWELL,

Acting Assistant Adjutant-General:

SIR: I learned on yesterday p. m., from a captain of the Seventh Kentucky, that the two regiments stationed at Baton Rouge do not report to Colonel Sheldon, but, contra, reports to some brigade commander at Baton Rouge. This being the case, either subdivision would be only the semblance of a brigade. I should also have to report to General Cooke as well as corps headquarters I shall proceed to Matagorda by the first steamer, my present order being sufficient unless the general commanding directs otherwise.

Very respectfully, your obedient servant.

M. K. LAWLER,

Brigadier-General Volunteers.

HEADQUARTERS U. S. FORCES, Matagorda Bay, Tex., February 25, 1864.

Captain A. B. SHARPE,
Assistant Adjutant-General, Thirteenth Army Corps:

I inclose a copy of a dispatch* received from T. P. McManus, at Piedras Negras, opposite Eagle Pass. I think it is a mistake about Kirby Smith being at San Antonio. McManus is a most reliable and valuable man; he ought to have authority to raise a battalion and means to equip it; he would do most valuable service. I gave him merely permission to go to the vicinity where he now is and to do what he could. He has had no assistance and can get no army, but Texas refugees believe in him, and he has now with him near 200 good and determined men. He left Brownsville about the middle of December, and when I left there early in January, being of the belief that I would be at once permitted to commence active operations, I requested him to send spies and scouts, if possible, to find me on this coast. These two men who have brought this dispatch are the first who have reached me; they are splendid men. I recommend that General Herron be instructed to communicate with him thought the consul at Monterey, who can always s find him, and to supply him whit arms, ammunition, and equipments. He should have carbines and revolvers; he is a most determined and desperate man and could do most valuable service.

Very respectfully,

N. J. T. DANA,

Major-General.

HEADQUARTERS DEPARTMENT OF ARKANSAS, Little Rock, February 25, 1864.

Major General H. W. HALLECK,
General-in-Chief, U. S. Army:

GENERAL: I sent you a copy of a letter+ to General Banks for the reason that it contained as good an account of the situation of affairs here as I could give at that time. If the rebels had any intention of

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*See p. 316

+See p. 246.

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