post. It is the first intimation I have received from any quarter of the extraordinary occurrence. I shall take immediate measures to bring the offender before a court-martial, that he may be punished in the most exemplary manner. I should not have waited for a request from you to that effect had I been aware of the occurrence before your communication was received.

I am, very respectfully, your obedient servant,

JOHN A. DIX,

Major-General.

UNITED STATES FLAG-STEAMER PHILADELPHIA,

Hampton Roads, October 25, 1862.

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

Commanding Seventh Army Corps, Fortress Monroe, Va.:

GENERAL: I received yesterday afternoon your communication of October 22, inclosing a copy of a telegram to you from the honorable the Secretary of War, dated the 18th instant, informing you of the conclusion of the Cabinet to place the Norfolk trade under your personal direction in the manner proposed by you when you were in Washington.

In reply to your inquiry I beg leave most respectfully to say that I have not received from the Navy Department the instructions referred to by the Secretary of War in his telegram of the 18th, but on the contrary I have received a dispatch from the honorable the Secretary of the Navy, dated October 22 (four days later than the date of Secretary Stanton's to you), approving of the detention of the schooner John Francis, loaded with merchandise for Yorktown, with a permit from you.

Under these circumstances I deem it my duty to transmit a copy of your letter and its inclosure to the honorable Secretary of the Navy, and to await the orders of the Navy Department before attempting to deviate from my present positive instructions.

I have the honor to be, general, very respectfully, yours,

S. P. LEE,

Actg. Rear-Admiral, Commanding N. Atlantic Blockading Squadron.

FORT MONROE, VA., October 25, 1862.

Honorable E. M. STANTON,

Secretary of War:

Admiral Lee informs me that he has no notice from the Secretary of the Navy of the decision of the Cabinet as to trade with Norfolk. I have communicated to him your dispatch of the 18th, but he has directions from the Navy Department as late as the 22nd which seem to be in conflict with it. I am giving permits to bring out staves and other articles, and the vessels are stopped by his orders.

JOHN A. DIX,

Major-General.

HEADQUARTERS DISTRICT OF NORTH CAROLINA,
Raleigh, October 25, 1862.

Major General J. G. FOSTER, U. S. A.,

Commanding Department of North Carolina, New Berne, N. C.:

GENERAL: Your letter of the 18th instant was received a few days ago. I send inclosed herewith a list of men belonging to Company K,