War of the Rebellion: Serial 035 Page 0548 KY., MID. AND E. TENN., N. ALA., AND SW. VA. Chapter XXXV.

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JULY 21, 1863.

General ROSECRANS, Nashville, Tenn.:

Dispatch received. Morgan, with 700 men, escaped yesterday during truce of forty minutes to consider question of unconditional surrender. All the rest of his force were captured, and he will undoubtedly soon be. So probably not 500, and perhaps not I, of his expedition of 4,000, will return to Tennessee. A mixed force is gathering at Big Creek Gap - not too many to handle comfortably. No change at Carthage. I may have to move the Kentucky regiment temporarily about election time. Will keep you posted. Do the same for me.

GEO. L. HARTSUFF,

Major-General.

CORINTH, July 22, 1863 j- 11.10 a. m.

Major-General HURLBUT:

Scout in from Okolona. Left yesterday at 4 o'clock. Johnston has fallen back to Chunky River. Bragg is at Chattanooga and Atlanta. They are working immense forces, fortifying Atlanta. No forces from Bragg had reached Johnston. Charleston dates of the 19th instant say Fort Wagner still holds out; that Yankees were surprised on James Island, and left, going to Morris Island; that our iron-clads and wooden boats continued to bombard Fort Wagner. Mobile papers say part of Lee's army is going west. Chalmers is still west of Pontotoc. Scout says that there is some move on foot, but cannot tell what it is. I will send extracts from papers.

G. M. DODGE,

Brigadier-General.

HEADQUARTERS OF CAVALRY, July 22, 1863.

Major-General ROSECRANS:

The rebels hold the fords of the Tennessee, with a small force only at each ford and ferry. Pillow has gone to Rome. Gurley and other bushwhackers have been in the mountains, and have gone to Chattanooga to get permission to pursue their calling. I do not think they will try it. The citizens all strongly oppose it, and will give information of the guerrillas. I scared Jackson County, I think, by my savage threats. Jere Clemens, and the Union men generally, of whom there are still a respectable number at Huntsville, desire us to return soon. Many thousands of bales of cotton can be procured in the country.

Greenwood is with Long. When he returns, I will know the condition of the Decatur and Nashville Railroad. The engines and machinery are carried off in the machine-shop.

What policy will you adopt with Tennessee rebels? Mitchell will require oath and bonds at Fayetteville, or they must move south of the Tennessee River. I will telegraph as soon as I hear from Long. A man came across the river yesterday; saw Dr. Sams' (Union) this morning; says he saw rebel paper; said Jeff. Davis was dead (may mean metaphorically). I can only learn of the rebels that they are trying to recruit up their cavalry. They are near the railroad, extending back as far as Kingston. Two rebel doctors boasted on Monday that Forrest was coming over in a few days, and he would show us a few things. I would like to see him try it. News is hard to get, as the refugees avoid