Morgan then passed round this position, and moved to Lebanon, where he captured a force under command of Colonel Hanson, after a desperate fight. he then passed on in the direction of Louisville, but, before reaching that place, turned to the left and struck the Ohio River, where he seized some streamers and crossed into Indiana before our forces could overtake him. Generals Hobson, Judah, and carter, and Colonel Wolford were now in pursuit, with parts of their divisions.

Our forces labored under great disadvantage, as Morgan seized all the horses on the route over which he passed, thus securing to his command fresh animals, while our cavalry was compelled to pursue with scarcely any time for rest or feed. As soon as possible the pursuing forces were crossed into Indiana. The enemy passed through the southern portions of Indiana and Ohio without serious resistance, until he reached the Ohio River, near Buffington Island. Our cavalry, under General Hobson, was kept in constant pursuit, and all necessary dispositions were made of the militia forces of Indiana and Ohio to prevent his striking important points and destroying depots of supplies. General Boyle was directed to send General Judah's command up the Ohio river by steamers to Portsmouth, thence up the Scioto, and prevent the enemy from crossing until Hobson's force could overtake him.

the gunboats, under Captain [Le Roy] Fitch, patrolled the Ohio river, to prevent the crossing into Kentucky. He succeeded, however, in crossing the Scioto before Judah's forces got into position. When he approached the river at Buffington Island, where he intended to cross, our forces were close upon him, and the gunboats were in positions to prevent his crossing. He was forced to fight, and the combined forces, under Generals Hobson and Judah, together with the gunboats under Captain Fifth, succeeded in capturing at least two-thirds of his forces, and all his artillery and supplies. Morgan himself escapade, and turned back from the river with the remnant of his men, but was closely followed by General Shackelford, with about 500 men of Hobson's command. Many of our troops, who had been in pursuit, were obliged to stop in cincinnati, on account of the breaking down of their horses. These men were remounted upon fresh horses and formed into a battalion under Major Rue, of the Ninth Kentucky Cavalry, and added to the battalion of Major Way, of the Eighth [Ninth] Michigan.

As soon as it was ascertained which direction Morgan had taken, these battalions were placed on the cars and sent over the Columbus and Pittsburgh Railroad, with the understanding that they would be directed by telegraph as to the place of their debarkation,f or the purpose of heading Morgan off.

By the assistance of Governor Tod, of Ohio, we succeeded in getting these troops into proper positions, where they wee unloaded, and checked Morgan near Salineville, not far from Steubenville. Soon after which General Shackelford came up, when Morgan surrendered the remainder of his command. The prisoners, together with those previously captured, in all bout 3,000, were taken to Cincinnati; after which I ordered the officers to be sent to Johnson's Island and the privates to Camps Chase and Morton.

Soon after the officers were started, I received an order by telegraph from General Halleck, directing the officers be sent to the penitentiaries at Columbus and Pittsburgh.

The loss of Morgan's command, which came to Kentucky 4,000 strong, was a heavy blow to the rebellion, and the brave men who followed him so persistently deserve the thanks of their country.

While these forces were absent from Kentucky in pursuit of Morgan,