War of the Rebellion: Serial 118 Page 0590 PRISONERS OF WAR AND STATE, ETC.

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Some days since Colonel Streight with the permission of General Rosecrans left with a mounted brigade for the purpose of cutting off General Bragg's communications which they partially succeeded in doing, but were finally defeated and captured near Rome, and the account from the rebel newspapers states that "the men were paroled except the four companies of renegade Alabamians who were sent to Richmond. "

Now I take it that this is a direct and palpable violation of the cartel. These men are regularly mustered into the Fifty-first Regiment Indiana Volunteers, and I respectfully ask that 800 prisoners may be selected from those now in our possession and held as hostages for the safety of these loyal Alabamians. Colonel J. B. Fry is acquainted with these facts.

I have the honor to be, very respectfully, your obedient servant,

O. P. MORTON,

Governor of Indiana.

[First indorsement.]

Referred to Major-General Hitchock, commissioner of exchange.

E. M. STANTON.

[Second indorsement.]

WASHINGTON, May 21, 1863.

Respectfully returned to the honorable Secretary of War with the remark that the undersigned would unhesitatingly recommend the adoption of the suggestion to hold 800 rebel prisoners as hostages for the loyal Alabamians held at Richmond but for the fact that the rebel authorities now hold Union prisoners considerably in excess over rebels held as prisoners by the Government.

An attempt to retaliate in the manner proposed would be immediately followed by an insulting outrage perpetrated by the rebel Government upon other unfortunate Union prisoners in their hands.

I would recommend that a circular be addressed to Union commanders of separate departments or corps embodying a statement of the facts connected with this transaction thus far developed, that our troops may be advised of it and go into battle with that knowledge.

Respectfully submitted.

E. A. HITCHOCK,

Major-General of Vols., Commissioner for Exchange of Prisoners.

FORT MONROE, May 11, 1863.

Honorable EDWIN M. STANTON, Secretary of War.

Mr. Ould has comedown with a flag of truce to the vicinity of Newport News where he was stopped by Admiral Lee. He came down to ask Colonel Ludlow to send up to Richmond to receive 10,000 prisoners. Five thousand have arrived there and the other 5,000 will be there by the time the transports reach City Point. Admiral Lee has sent me some Richmond papers which I will send by the afternoon mail. they acknowledge 7,000 wounded, 900 killed and 1,200 missing. General Van Dorn is dead.

JOHN A. DIX,

Major-General.