War of the Rebellion: Serial 042 Page 0328 W. FLA., S. ALA., S. MISS., LA., TEX., N. MEX. Chapter XXXVIII.

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statement of the facts as the brief period given me will allow. For your consideration, and as a part of the evidence, I inclose the printed circular entitled " Common Sense," which circumstance prove to be the composition of D. J. Baldwin, my remarks to the troops and citizens on Tuesday last, and a sketch of the principal parties implicated furnished by Honorable Horace Cone, my judge-advocate-general, a well-know and able member of the bar in this city.* This is all that I can possibly send by the return courier, as it would require of weeks to copy all of the papers relating to the affair.

Communication with the enemy, via Matamoras, is proven against several persons of high standing (mentioned in Mr. Cone's paper), and a considerable sum of money in gold and notes had been prepared for the Federal prisoners secretly, which is nw in our possession, and evidence of secret understanding and secret badges abound. I have consulted with the principal lawyers and men here, and I am sustained by both the troops and the people.

No writs of habeas corpus will, I believe, be sent out by the prisoners, as they are afraid of their lives, if acquitted. The principal individuals at Austin, here, and elsewhere, who are suspected, are closely watched. Peeples, Baldwin, and Zinke, the principal conspirators, have been ordered to be confirmed at San Antonio until further orders. Some others who were arrested have been released with a warning. Additional evidence is being obtained every day, and I shall endeavor to keep you constantly and regularly informed. I have been advised to stop for the present. The district attorney, Mr. George Mason, is absent, being at Tyler, Tex., but I have written to him, requesting him to return immediately, as his presence is of the greatest importance to me.

I have been fortunate enough, however, to be assisted by the counsel of the Honorable Horace Cone, an able and learned gentleman of this city, whom I have assigned to duty as judge-advocate-general of this district, with the pay and allowances of a captain of cavalry, as compensation for his services. He has conducted the investigations in the most able and successful manner, and is a true patriot and a good lawyer. I think the appointment has had a very good effect, and I respectfully request, general, that you confirm the appointment as soon as possible.

I believe Mr. Cone is personally known to Major Bryan, of your staff, who doubtless can testify to his fitness for the position.

In haste, I am general, very respectfully,

J. BANKHEAD MAGRUDER,

Major-General, Commanding.

HOUSTON, TEX., October 16, 1863.

Colonel S. S. ANDERSON, A. A. G., Trans-Mississippi Department:

COLONEL: I have the honor to acknowledge the receipt of your letter of the 14th instant, directing me to place at Mosely's Crossing of the Brazos, 2,262,027 pounds of middling fair cotton, and I would state in reply that it is impossible for me to do this, for the following reasons:

The stores already delivered in accordance with contracts have been ordered to be paid for, and in all cases I have ordered supplies to be paid for in the order of their delivery, as any other course would be very apt to create well-founded dissatisfaction. I would obey this order if I could, but I have not the means to buy the cotton, or, if bought, to transport it, and I must respectfully beg the lieutenant-general not to

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* No inclosure found.

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