The Secretary of War desires that you give the matter early and diligent attention, and that you keep the Department posted about the movements of the parties referred to and the action taken by you to defeat their plans. The employment of the persons named in Colonel Baker's letter is authorized for this purpose, as well as the employment of any other means that you may think necessary and proper in the premises.

Very respectfully,

ED. R. S. CANBY,

Brigadier-General and Assistant Adjutant-General.

[Inclosure.]

OFFICE HDQRS. ASST. PROV. March General FOR INDIANA, Indianapolis, Ind., March 5, 1864.

Colonel JAMES B. FRY,

Provost-Marshal-General:

SIR: The evidence is daily accumulating of an intention on the part of the disloyal portion of the citizens of this State and of State of Illinois to revolt against the Government as soon as their plans are perfected and a favorable opportunity offers. I think, with proper skill and energy, their treasonable schemes could be exposed and some of their leaders brought to merited punishment. I have strong reasons for believing that arrangements have been made for procuring arms from Canada, and that they are to be distributed rom Chicago, Fort Wayne, and other points. The machinery by which the dupes of these leaders are to be educated up to the point of open resistance to the Government consists of secret oath-bound societies, the organization of which is fast being perfected all over the States.

I am in communication with two of the members of this organization, who connected themselves with it for the purpose of serving the Government, and both of whom I believe to be thoroughly loyal and reliable. One of hem, John Jackson, has within a few days enlisted as a soldier in the One hundred and first Regiment Indiana Volunteers, and I think, with the knowledge he possesses of the plans of these traitors, and having their confidence as he has, he could be much more useful to the Government by retaining him in this State than by sending him to the field.

The other is a man with good social position, a physician by profession, quite intelligent, and possessed of considerable property. He has already spent some money and much time in making himself acquainted with the plans of these men, for the purpose of ultimately using the information for the benefit of the Government. His name is Henry I. Zumro, and his residence Huntington, Ind. I beg leave to suggest the propriety of employing him for detective purposes at such salary as would justify the risk of loss of life and property he discovered. His services could be secured for $100 per month. If he were employed in the ordinary way, through the provost-marshal- of the district, the employment would most probably be known.

If he should be employed the fact should only be know by himself and the officer employing him. I further suggest that if the recruit Jackson should be detailed for similar duty in this State the fact of the detail should not be made known to any person or officer in the State, except himself and the officer to whom he might be directed to report. I would then have him to perform the part of a deserter and return to