CONFIDENTIAL.[WAR DEPARTMENT,

Washington, September 20, 1864.

Major-General DIX, New York:

The following telegram has just been received in relation to the recent piracy on Lake Erie. You will not probably need any troops, but will proceed to Buffalo and make an official examination, and report of the facts to be ascertained there and at Detroit, or any other point on the Lake coast.

EDWIN M. STANTON,

Secretary of War.

DETROIT, MICH., September 20, 1864.

(Received 2 p. m.)

Brigadier General J. B. FRY, Provost-Marshal-General:

The American steamer Philo Parsons, running from this place to Sandusky, was seized yesterday by rebel refugees who embarked at Malden, Canada. They captured and sunk the steamer Island Queen. The steamer Philo Parsons was brought this morning to Sandwich, Canada, where, after plundering and cutting her pipes to scuttle, was abandoned. The seizure of the Philo Parsons, and the capture and sinking of Island Queen, occurred in American waters. The plundering and scatting of Philo Parsons in British waters. Have seen district attorney in relation to proper legal steps to take.

B. H. HILL,

Lieutenant-Colonel, U. S. Army.

WARE DEPARTMENT,

Washington, September 20, 1864-1.15 p. m.

Major-General DIX, New York:

This Department has just received information that rebels from Canada have captured two steamers at Bass Island, on Lake Erie. You will proceed immediately to Buffalo and take such measures of defense and fort recapture of the steamers as you find proper and practicable, reporting to this Department. If you need any force, there is a regiment at Albany of the Veteran Reserve Corps, which is placed under your orders. You will also issue a requisition upon the Ordnance Department for arms and accouterments that may be required by the Governor of New York, and that you deem necessary for coast defense. Acknowledge this telegram.

EDWIN M. STANTON,

Secretary of War.

NEW YORK, September 20, 1864

Honorable E. M. STANTON:

Your dispatch in regard to capture of steamers on Lake Erie is received. I shall leave by first express train for Buffalo. Will you request the Secretary of the Treasurey to direct Captain Ottinger, of the revenued service, to finish the new revenue cutter at Buffalo by working on her night and day. I am advised that she can be finished in a few days.

JOHN A. DIX,

Major-General.