falsity of report, but could not ascertain whether the enemy had gone in the direction of Sweet Springs or Covington.

Upon my arrival at Fincastle on 20th, learning that the enemy had gone toward Covington, I marched for that place, reaching it two days after him. I still followed on, with the hope that his course might be checked or retarded, giving me time to close up. After passing Callaghan's I learned that there was no other force in his front, so I turned off to Warm Springs, striking the Central Railroad at Goshen. Had my march across North Mountain not been changed by dispatches received, and the conviction that if I interposed between the enemy and myself a stream represented as likely to be impassable for several days, I would leave the route by Buchanan open and expose Lexington, or enable him to retire on south of Virginia and Tennessee Railroad, or through Giles and Monroe Counties, without molestation, I should have arrived at Covington three hours ahead of him; or had Colonel Jackson destroyed the bridge over Jackson's River, or interposed any obstructions to his march, Averell's command must have been captured.

Too much credit cannot be attributed to the cheerfulness with which both the members of General Imboden's command and my own have borne the privations and exposure of a long march in weather of uncommon severity, and the alacrity they evinced to meet the enemy. My own command has marched over 300 miles in twelve days.

As far as I can learn, Averell's force consisted of the Second, Third, and Eighth Regiments of [West] Virginia Cavalry; the Fourteenth Pennsylvania, Major Gibson's Battalion, and Captain Ewing's battery of six guns - in all about 1,700 men - said to be mostly six-months' volunteers, whose term of service expires in January next. He lost all his wagons, and is reported to have carried but three of six pieces of artillery back past Callaghan's. Colonel Jackson can report the number of prisoners taken.

My especial thanks are due to General F. H. Smith, of Virginia Military Institute, for the promptness with which he moved his command and the eagerness he evinced for the capture of the enemy; and to Mr. Mann, formerly sheriff of Rockbridge County, for valuable services.

The casualties of my command are confined to the loss of Private Marmaduke, of the Ninth Virginia Cavalry, who was drowned while fording Jackson's River.

Very respectfully, your obedient servant,

FITZ. LEE,

Major-General.

Lieutenant Colonel A. S. Pendleton,

Assistant Adjutant-General.

[Indorsements]

HEADQUARTERS CAVALRY CORPS,
December 29, 1863.

Respectfully forwarded.

It is believed that Major-General Lee did everything that he should have done under the circumstances.

J. E. B. STUART.

Major-General.