It is evident the rebels are determined to have that line of smuggling kept up, unless we make it too warm for them. Lieutenant Baker captured yesterday two barrels of rebel whisky, which he brought into the Court-House.
As soon as I can get all the facts in this case I shall report.
Chief of Staff.
HEADQUARTERS CAVALRY BRIGADE, December 4, 1862.
GENERAL: Your dispatch of this date received. In answer, I beg to inform you that I sent the Eighth New York and Third Indiana Cavalry [the latter six companies strong] to re-enforce Colonel Gregg. This force is from 700 to 800 strong. I have also directed Colonel Gregg to withdraw all parties in any danger of being cut off, and to be vigilant by patrolling the country. I have further directed him, in case the gunboats remove down the river, to draw in his artillery to his main body at the Court-House. Colonel Gregg reported he had received orders from the provost-marshal-general to place guards at certain houses, which, in the colonel's opinion, would expose them to capture. I told the colonel to do nothing which would risk his men; that the provost-marshal-general's orders to him in such cases could only be conditional. I have also sent out patrols from my camps here, in the direction of the Court-House and vicinity. The straggling is pretty much stopped. Citizens or somebody else fire at individuals on the roads down the Peninsula nowadays.
Chief of Staff.
P. S.-I shall send Colonel Gregg additional instructions on your dispatch.
No. 2. Reports of Brigadier General Seth Williams, U. S. Army, Assistant Adjutant-General, Army of the Potomac.
HEADQUARTERS ARMY OF THE POTOMAC, December 3, 1862.
GENERAL: I have the honor to report that, in obedience to your instructions, I this day proceeded to the headquarters of Colonel Gregg, Eighth Pennsylvania Cavalry, near King George Court-House, to examine into the circumstances attending the capture of a detachment of that regiment by the enemy, at the town of Leeds, Va., on the morning of the 2nd instant. The following appears to be substantially the facts in the case:
Captain Wilson, Eighth Pennsylvania Cavalry, was sent by Colonel Gregg, in compliance with the orders of General Pleasonton, commanding cavalry of right grand division, with a detachment of his regiment,