I occupied the town about six hours, when my scouts reported a large force advancing from Winchester. I immediately moved in the direction of Owensville. I had not proceeded more than 5 miles when they made their appearance some 2 miles in my rear, numbering about 2,500 men, with several pieces of artillery. They would not advance upon me, and I quietly moved on to Owensville without pursuit, and from thence to the above place. When I left West Liberty for Mount Sterling, the enemy, numbering 1,300 men, with four pieces of artillery, were at Hazle Green, in pursuit of my force. They reported and dispatched a courier to Mount Sterling, stating they had me completely surrounded; but I surprised them by making my appearance where I was not expected.

General Marshall is in 40 miles of this place, moving on with 1,600 cavalry. He lost his artillery the other night. The guard placed over it went to sleep, and some Home Guards slipped in on him and carried off the gun, leaving the carriage and caisson.

Cal. [Calvin C. Morgan] is trying to effect an exchange between Captain W. D. Ratcliffe and Charlton [Charlton H. Morgan], but we have not received an answer as yet.

I send you 3 prisoners, which you will take charge of until you hear from me again-one by the name of Voris; charge, desertion; Captain McKee, who has persecuted every person in Bath, Montgomery, and Clark Counties, and is provost-marshal; and Thomas, who is a ---, acted as a spy. My command is elegantly mounted and clothed; in fact, in better condition than they ever have been.

If your command was here, you could clean the State of every Yankee.

I am, general, very respectfully, your obedient servant,

R. S. CLUKE,

Colonel, Commanding.

General JOHN H. MORGAN.

MARCH 22-APRIL 1, 1863.-Pegram's Expedition into Kentucky.

SUMMARY OF THEE PRINCIPAL EVENTS.

March 24-26, 1863.-Skirmishes at Danville, Ky.

28, 1863.-Skirmishes at Danville and Hickman's Bridge, Ky.

30, 1863.-Action at Dutton's Hill, near Somerset, Ky.

REPORTS.

Numbers 1.-Major General Ambrose E. Burnside, U. S. Army, commanding Department of the Ohio.

Numbers 2.-Major General Quincy A. Gillmore, U. S. Army, commanding District of Central Kentucky.

Numbers 3.-Brigadier General Mahlon D. Manson, U. S. Army.

Numbers 4.-Brigadier General John Pegram, C. S. Army, commanding expedition.

Numbers 5.-Colonel J. S. Scott, First Louisiana Cavalry.

Numbers 1. Reports of Major General Ambrose E. Burnside, U. S. Army, commanding Department of the Ohio.

HEADQUARTERS,
Cincinnati, Ohio, March 25, 1863-3.30 p. m.

The enemy took possession of Danville yesterday, our troops retreating to this side of the Kentucky River, holding Hickman's Bridge.