HEADQUARTERS DEPARTMENT OF THE GULF,
New Orleans, November 14, 1862.

Major-General HALLECK,

Commanding Armies of the United States.

GENERAL: I beg leave to inclose to you my communication to General Pemberton, of the Confederate forces, upon the subject of the murder of seven of my soldiers. When two companies of the Eighth Vermont Regiment surrendered at Bayou des Allemands there were enlisted in those companies and surrendered as prisoners of war with them seven German residents of Louisiana, who owed no farther allegiance to the State of Louisiana than we all owe to our States by being inhabitants thereof. Because of their enlistment with us they were tried for desertion from the militia in which they had never acted, and for treason to the State of Louisiana, to which they never owed allegiance because they were naturalized citizens of the United States, were found guilty of these supposed offenses only, and were executed in obedience to the orders of a militia court-martial, acting by orders of Major-General Lewis, of the militia of this State.

I have treated of the subject in my letter to General Pemberton, to which I beg leave to refer you.

I send also a partial copy of the proceedings of that court-martial which I have captured, from which you will learn the facts.

I beg specific instructions upon this matter. I hope and trust those instructions will be to shoot twice as many more of the Confederate prisoners of war in retaliation.

I have the honor to be, your obedient servant,

BENJ. F. BUTLER,

Major-General, Commanding.

[Inclosure Numbers 1.]

HEADQUARTERS DEPARTMENT OF THE GULF,
New Orleans, November 13, 1862.

General PEMBERTON, Commanding Forces, Holly Springs.

GENERAL: I have received your communication by the flag of truce with prisoners which have been duly receipted for. I am exceedingly grieved at mistake in regard to Pennington. I had supposed that he was confined in Fort Jackson and sent an order there for his release, but not being confined there by some unavoidable blunder the matter was not reported to me. He remained without being paroled till October 14. I supposed up to that time that Pennington had been released. I have ordered his unconditional release in consideration of the unintentional injustice which has been done him, and will send him up with the other prisoners if he desires. It did not need the retaliation of the detention of two privates I assure you to cause this act of justice to be done.

I beg to call your attention to the fact that the two lieutenants of the Indiana regiment for whose exchange I sent Captain Murphy, of the Confederate Navy, have not been released. Captain Murphy has not returned and reported to these headquarters. May I ask you to see that they are released?

I have some 200 prisoners whom I will send to you as soon as transportation can be spared, with this exception--I shall retain fourteen of the most considerable of them, including Brigadier-General Clark, until I receive instructions from my Government as to the course to be taken in relation to the proceedings of a pretended court-martial held