HEADQUARTERS SHELBY'S DIVISION, December -, 1864.

COLONEL: *

I rested until July 12,organizing and putting into running order various regiments and brigades, and scouting and patrolling the country from one end to the other after jayhawkers and robbers, many of whom were caught and executed directly on the spot. In these quiet and sultry days of summer a Federal cavalry regiment - the Tenth Illinois - came weekly to Searcy and sent an indirect challenge for an equal force to come down and fight them. On the 11th [12th] Colonel Gordon with 500 men started after them, and on the 12th [14th] at daylight charged directly into camp, firing upon some sound asleep and others undressed. The panic and rout was complete. Out of the 600 boasting Federals not 100 escaped to tell the tale. Gordon gathered up carefully all the arms, and sending part of his force to the railroad under Major McDaniel, returned to camp with his prisoners.

McDaniel struck the railroad the next day, captured 13 prisoners, destroyed about half a mile of track and telegraph, and returned. A train of cars coming under full steam from Little Rock ran off the embankment, killing 6 soldiers, wounding severely 17, and destroying 1 locomotive and 2 cars. At the same time I sent Colonel McCray with sufficient force to the Mississippi River for several hundred stand of arms, which had been negotiated for. McCray was entirely successful, and succeeded in bringing over about 900 goods guns. I now organized a combined attack upon river and railroad, determining to strike a double blow in different directions. Colonel McCray went forward the railroad with about 1,000 men,and I went to White River with about 600.

Reaching the river on the 31st, seven miles below Clarendon, I commenced immediately to get my guns in position. While doing so, and before I could possibly use them, two guns-boats passed slowly down, one of them landing within ten feet of my concealed scouts. After they left the preparations were completed, and the river watched a day and a night, but nothing passed up or down. Still waiting, my tried and trusty spies soon brought me intelligence that a large Federal force was advancing up White River by boats and was already at Des Arc, thus gaining my rear and threatening both the reserve ammunition and unarmed recruits at Jacksonport. No time was to be lost. Marching immediately all that day and night and the next day, I reached Augusta shortly after the arrival of the enemy, who fled hurriedly on my approach. This sudden and rapid movement on my part alone saved men form irreparable loss. McCray reached the neighborhood of the railroad safely held a good force back as a reserve, and commenced operations. Coleman went first 500 men, destroyed some of the track, burned some trestle-work, and retired fighting. Jackman one day later made a vigorous attack again, killed 10 Federals, captured 23, destroyed a mile of railroad, stirred up a hornet's nest, and fell back hard pressed. Then a large force of the enemy massed on McCray, forced him back, and he sent to me for help. I marched my entire force night and day to this assistance, checked the Federals, and drove them back, after which my command rested for several days.+

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*For portion of report here omitted, see Vol. XXXIV, Part I, p.926.

+For continuation of report, see p.649.

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