HEADQUARTERS SEVENTH ARMY CORPS,
Fort Monroe, Va., September 25, 1862.

Actg. Rear-Admiral S. P. LEE,

Commanding North Atlantic Blockading Squadron:

ADMIRAL: I have sent the passes designed for Norfolk to Captain J. H. Liebenau, provost-marshal, who will sign them for vessels coming from that port. Captain Blake will sign passes for vessels going from this post.

The mail and transport vessels are subjected to a strict examination, and nothing is permitted to go in them except supplies for the army or articles belonging to individuals not designed for traffic. An account of everything carried in these vessels is kept by the captain of the port. By these precautions there can be no traffic with Norfolk except such as is carried on under the regulations which I sent to you.

I am, very respectfully, your obedient servant,

JOHN A. DIX,

Major-General.

HEADQUARTERS SEVENTH ARMY CORPS,
Fort Monroe, Va., September 25, 1862.

Actg. Rear-Admiral S. P. LEE,

Commanding North Atlantic Blockading Squadron:

ADMIRAL: I have deferred answering your communication of the 17th instant in order to obtain all the facts in regard to the steam gun-boat on the stocks in Norfolk. General Viele, on a reference of the matter to him, says:

Admiral Lee is laboring [under] a misapprehension. The private ship-yard of one Nash was seized by my order for Government purposes, and it has been and now is used by the quartermaster for repairing vessels used by the army for transportation. In the yard and on the stocks is a vessel completed, intended for the insurgents by this man Nash. I directed the quartermaster to complete the vessel sufficient for launching.

On mentioning the fact to Admiral (then Commodore) Goldsborough he offered the use of a gunboat to tow the vessel to Washington. That is all the understanding there was in the matter.

This subject was brought to my attention in the month of August. I was not aware that General Viele had done anything in regard to it, and on a statement of facts by Captain Ludlow, the quartermaster at Norfolk, I ordered him to have the vessel planked up so that she could be launched and towed to Baltimore, where I proposed, with the consent of the War Department, to have her finished. I inclose a copy of Captain Ludlow's report to me, stating the facts at my request.* The work has been done by my order; and I directed him further to place in her, if it should be found suitable, a boiler left by the insurgents.

I am, very respectfully, your obedient servant,

JOHN A. DIX,

Major-General.

UNITED STATES FLAG-SHIP MINNESOTA,

Newport News, Va., September 25, 1862.

Major General JOHN A. DIX, U. S. A.,

Commanding Seventh Army Corps, Fort Monroe, Va.:

GENERAL: The Navy Department informs me that timely notice

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* Not found.

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