The New York Herald Newspaper, December 27, 1862, Page 1

a. . 4 THE NEWYORK HERALD. | WHOLE NO. 9601. ONE WEEK LATER FROM EUROPE. | 3st THE EUROPA AT HALIFAX. Concentration of the British West India Fleet. Tho English Abolitionists in Support of the Bmancipation Proclamation. VRENCH REINPORCEMENTS FOR MEXICO. General Prim Defends the Withdrawal of the Spanish Treeps. He Prophesies Poor Results for France. wert Garibaldi’s Son Mortally Wound- ed in a Duel. THE ATLANTIC TELEGRAPH, &e., &e., ee. 3 Hauirax, Deo, 26, 1862. ‘Te steamship Europa, Captain Moodie, from Liverpoo} ‘at eleven o’clock A. M, on the 13th, via Queenstown even. ‘ag of the 14th inst., arrived *at this port at half-past ten @cloek last night, with thirty-three passengers for Bos: ton, and efiled again for that port at daylight this morn- A despatch from Liverpool, dated on Sunday the 14th @etant, cays the political news is generally of an unim- portant character. ‘The steamship Tentonia, from New York, arrived at Southampton on the 12th inst. The steamship Ktna, from Now York, arrived at Liver- poo} on the 21th inst. THE AMERICAN QUESTION. @oncentration of the British West India Pleet—The English litionists in Aid ofthe Emancipati lamation, &c. ‘She newspaper comments upon American affairs are generally of an unimportant charager, The London Shipping, Garette says the war steamer Ariadne has been ordered to jeave Halifax, and after ‘visiting New York to join Admiral Mflne’s squadron at Bermuda. This movement looks like a conceptration of ‘She disposable force of Milne’g squadron in the localities 4n which reeently reportéd outrages on British shipping Dy federal) cruisers, which have been perpetrated with Rnowledge that there is no forc® at hand capable of pro- -tecting British vessels, and with instructions to do ao, ‘The Gazelle thinks that even Wilkes will hardly venture ‘upon further molestation or vio}étion of neutral territory, ‘The recently formed Loudon Emaucipation Society had gamved circulars to ministers of all denominations, urging ‘them to give prominence to the subject of negro omanci- pation from their pulpits, in view of the inauguration of ‘Mr. Lincoin’s emancipation policy with the new year. ‘The London Star says & most enthusiastic meeting teas been held at Lambeth, to express sympathy with the ‘anti slavery policy im America, About three thousand persons were present. 7 A return shows that during the present year forty-six American ships have been registered at Liverpool under British names. The Atlantic Telegraph. A general meeting of the Atlantic Telegraph Company was held in London on the 12th. Hom. James Stuart ‘Wortley presided, and stated the terms on which it was proposed to raise £600,000 new capital, ds already pub- Mahed. He announced that within three days the £75,000 Bad, in response to thecirculars, been subscribed. A Fesolution was carried to raise the now capita! in sharcs @ £5 each, for laying down a new cable. ‘The meeting was regarded as the most encouraging and successful. ‘The London News, Star and other’ journals warmly ad- | vooate the claims of the company. The London Tires ays notification is advertised that the new undertaking for laying the cable has been formed with Continental Support, and will shortly be intreduced. France. ‘There are again rumore in Parie of unfavorable news from Mexico, and urgent calls for reinforeements, which, M6 is said, will be sent under the device of establishing a reserve at Martinique. ‘The Cardinal Archbishop of Paris has gone to Rome, tt f ramored, in the nameof the Emperor to explain to the Pope the Emperor’s views, with s view to the con- Italy. Parhament reassembiod en the 11th instant. Varini explained his policy and promised administra- tion reforms, based upon the system of decontralizsa- ‘tion and development of constitutional liberties: He @alogized the army for having, under » painful trial, re- ‘established the authority of the laws. He aaid “with umshaken confidence in the aceomplisbment of Italian ‘unity, we abstain from making promises which might met be followed by immediate effects, and await the @ourse of events without illusions an@ without dis- Souragement. We shall be careful te maintain alliance He Pallavicini, who captured Garibaldi, the young man is feaid to have received a mortal wound im the sice, and ‘the Colonel was seriously burt. in. General Prim has made y explanations in tho Cortes on the conduct in Mexicd, He read confidential letters addressed to bim by Admiral La Graviere, contain- tng strange details relative to the Mexican expedition. Ac- cording to these letters Almonte declared he was authorized by Napoleon and Archduke Maxmillian himself to put for- ward the candidate of the latter, and that the French troops would guarantee the throne of Mexico to the Arch- duke. General Prim also read letters of O'Donnell and Collantes recommending the strict execution of the treaty ef London, He said an English representative had made eimilar declarations to bim, and that under the eircum- ‘stances ho doemed it wise to embark for Spaim. In con- elusion, he expressed his opinion that the Frencb expodi- tion would not have the desired result. ‘ Russia. ‘The Imperial Rank of Russia bas reduced ste rato of discounts from 5 3¢ to 6, ‘Tho annoancement thut Russia consented to the candi- @aturo of King Ferdinand, of Portugal, to the Greek ‘throne, is unfounded. It im Pumored that St. Petersburg will be shortly de- larod tree port. Commerctal Intelligence. THE LONDON MONRY M@RKET. Console closed om Friday , Dece' 12, at O24 adzy sot exoeps ‘Tho bullion in. the Bank has decreased £172,000, of American stocks bare been small, J!inois 4 he diz.; Erie Railroad, #2 a 4234; United 1#, Dec. 13, 1862. The Bourse is steady, Renter 70f, 65c. THE LIVERPOOL COTTON MARERT. Lavinroot,, Deo. 18, 1862 ‘Tho Rrokere? Cirentar roports the sales of cotton for the week, at 66,000 balce, ‘The market has been buoyant, aid Mieow bdvancell ya. a Id., mostiy on the middling aoe oer itn ppeculatdrs Wire 8,000 baler, di’ thot to scaler to ‘ i rae ere 3,000 bales. Tee rales on Fr . 400 (0 epeculntors and exporters; D market closit Fair. won 2 2 HAVRE COTTON MARKET. The rales of cotton for the week foot up 13,000e@ale8, ‘the market ruling active and buoyant, with a demand for all descriptions at full previous prices. Stock in port 61,000 bales. ‘Tho atvicen from Manchenter arefavorable, Prices aro vi ren 3 advancing, and holders demand still higher rates. The MAREBT. Gordon, Bruce & Co. report:—Flour flat at 229, a ‘2s. for American. Wheat steady and unchanged at Tues- day?s decline; red Westerm, 68. 9d. a 9s. 4d.; red Southern, 9s. 84. 2 Oy. 10d,: white Western, 10s. 3d. a I1s.; white Southern, a 12s. Corn quiet, aud 34. . A mixed, 288. a 288. 3d. PROVISIONS MARKRT. ‘The sume authorities rep rt—Beef inactive. Pork tend: ° ing downwards. Bacon easier. Lard quiet but steady. Tallow stil} declining, and qnoted at 42s. a 449. The Brekers’ Ger a Ashes acti’ ts, Y Xre reports: —, ve; pots, 336. 64.; pearls, 32s, 6d. Rosin quiet at 268, a 26n. 64. for common. Spirits turpeptine very dull, Sugar quiet Dut steady. CoMee—vo sales, Rice ly. Lingeed tending downwards, kinsoed of} inactive. Cod oil dull and unchanged. Petroleum heavy and tending downward. LONDON MARKETS, Breadstuffy quiet and eteady. Iron firm. Sugar hae a ‘@eclining tendency. Coffee steady, Tea steady, but niet. Rice inactive. Tallow dull. Spirits turpentine fat 1108. Rosin dull, common 27s. Lindseed oil, upwards, quoted at 388. 6d. Sperm oil imactive. Petro- Jeum oil downward, quoted at 22s, Groves & Todd report provisions quiet andeteady. Lard downwarus. s THE LATEST MARKETS. Liverroon, Dec. 13—Evening. ‘The sales of cotton to-day reached 12,000 bales, includ- ing 7,000 to xpeoulators and oxporters.. The market is ert and tends upward, with an advance of 4d. on ‘urats. The breadstuffs market js dull, but steady. The provision market is inactive, Lonnon, Dec. 18—Evening. Consols closed at 9234 a 9214 for money. The latest eales of American stocks are:—Erie Railway, 4234; Ulinois Central, 42. NEWS FROM THE SHENANDOAH VALLEY, Evacuation of Winchester by s the Rebels. Great Destitution Among the People at Winchester, Rey ae, ae. Baurnione, Dec. 26, 1862, Colonel Keyes moved from Romney and took possession of Wiochester on Tuesday morning, when the rebel pick- ete left there took their departure. ‘The rebel General Jones, with 2,500 men, had occupied the place the week previous, but had left, going towards Btaunton. . Miller’s forces were at Middletown, mtending to move on towards Winchester. The Winchester Railroad has been entirely destroyed by the rebels, and the iron carried off by them, Great destitution exists among the people at Winches- ter. The common necessaries of life are at famine prices, and hardly procurable at that, THE M'DOWELL COURT OF INQUIRY, Continuation of the Cross-Examing@tion of General Sigel. fe Wasurncron, Dec. 26, 18¢2. The thirtieth day’s session of the McDowell court was held to-day. About twenty spectators’ were present at its deliberations, amongst them the eccentric and cele- brated Count Gurowski. The Count attracted marked attention, as much from bis personal attractions as from of the court in certain pointe. He appears to be an intimate, and, if one would be allowéd to judge from the winks and decided nods thrown out by him to the witness to-day during the cross examination,a confidential ad- viser of Gen. Sigel. General Sige] desired to make some remarks in his testimony on cross-examination by General McDowell on the previous day’s session. He acknowledged the au™ thenticity of the record of the recorder, but desired to state that, in addition, a@ he nad consulted his papers since his testimony yesterday, ‘ The Court would not allow this ualess there were inac- curacies in his statements which, after consulting his papers, he would desire to correct. ‘Phe witness did pot know that he had made any rato statements. In answer toa question from Getieral McDowell, as to his (General Mclowell’s) provision for meeting Gencral Lougstreet and the strength of Ricketts’ force, a8 ihdicated jm the order of march, witness said:—Itis ‘err for me to say what I knew four months ag: do not know at all what was the strength of Ricketts’ division. 1 hardly remember anything about it. I don’t know whether # had four brigades in it er you bave considered, under the cir- , that four brigades and twenty-four pieces of ar and the cavalry, ap aggregate of twelve thou- sand men, sufficiegt force to hold eet in check? Answer.—I would haveregarded it as a sufficient provision ‘sek ce ‘the right point and at the t time. Q—Do you or do you not know that treet did come through Hopewell Gap, about five miles to the ‘north of f! ,0r do you not know that he came through fare Gap? A.—I know afterwards say cannot anewer the question as to what was to hinder it. How then do you know that he did not do all that you un- derstood should be . , as 1 bave no exact knowledge of wi was done in eral, and ax my s were made to the result. 1 knew that Longstreet was coming up on the 29th, had come, and also knew that be 00-opel or wi McDowell had left suffieient force at Thoroughfare Gap to the enemy’s troops from passing this defile, y to be defended. You havo atterwards stated that did not know what Gevera! McDowell did to prevent estreet from coming through Thoroughfare Gap. How en did yeu know that he had not left a sufficient force? . I stated so because it was my impression that a serious t would have taken place there. As I heard vothing eh a fight, I supposed there was not a sufficient force ere. Q.—-You have stated that your trcops lost time and’ ‘decamo tired in marching and countermarching, to come to nearly the same point in the ovening which they left io the morning, in compliance with the orders of General McDowell. Is it understood 1 pliance with his orders that this was done? a. it was im compliance with General orders that my corps lert the point where it was formed at non in order of battle, and that this wasa mistake, Ferther, Tsay that it was not by order of GenerahMcLowoll, but by order of General Pope, that I marched. Gon. McHowell bere entered a protest against ness being allowed to answer categorical cuest! this explanatory way on cross-exam vation as follow: ig objectod to by Gerorai McDowell that the witw now allowed to explain the movements made, or to q lify his evidence in chief, or to make remarks on the game, at least unt!l after he shall have directly , specifically aud expressly angwered the cross interrogations propoun- ed to Bim. The conrt was cleared, when the protest of Gen. Mo- Dowel! was overruled. direction of the Court, the Ri asked the fol- lowing question of. the witnews:—Was countermarch made jn going to or retnrning from Manassas Junction by Gen. McDowell's orders? If not, you will atate by whore orders, in connection with Gen. McDowell, it was made. A.=-It was not made by Gen. McDowell's orders alone, 1 marched by Gen. McDowell's ordore towards Manassas, and by orders of Gen. Pope from near Manassas to New Market. ‘The Court then adjourned unti] to-morrow. A Pri 33 Pe 533 Fight—New York Versus Boston— New York the Winner, &c. Borrow, Dec. 26, 1862. A prize fight took place yesterday afternoon in the presence of about one hundred “ roughs,”’ between Billy Donnelly, of Now. York, and Young Shiner,” of Boston. ‘Tho « horoes’? of the occasion were both of the « light weight’ order. After sixteen rounds had been fought, Billy Donnelly was declared the victor, . New Yran any THR CononeD. PROWR,~-The Colored poo- | ple in various cities and towns are making preparations for a grand jublice on the Ist of Lage ws in honor of the promulgation of the *"nanciation proc! \ the liberal manner in which he criticised the decisions | —— NEW YORK, SATURDAY, D qhounions argnay Ore sAvance noted | ASTOUNDING ARMY FRA\ H sumoretgi |The Official Investigations in This City. ‘ High Government Officers Implicated. HOW THE FRAUDS ARE COMMITTED. Extraordinary Operationsof New York Brokers. The Colone} ‘a a City Regiment: Figuring asa Wholesale Robbér. Forty Forgeries on the Government in Two Months. Seven Hundred Thousand Dollars Robbed in One Single Department, Ree, * Ree, Roo It ie not generally known that a most important inquiry has been progressing in this city for the lest two months, with the object of investigating certain sorious charges Of frauds on the United States government in the department of rations and lodgings for our volunteers. ‘Thus far the inquiries have had a most salutary result iv laying bare a vile and gigantic system of robbery and peculation. A mass of most important evidence has been taken, which it is hoped will bring the principal offenders to well merited punishment for proying upon the vitals of the country in the most shamcless and disgraceful man- ner in this her day of greatest need and peril. + The offenders in this caseare of two classes—civi) and «military. The former are, of course, amenable to military law, and will, as soon as the proper time arrives, bo tried by courts martial, and be punished by imprisonment, with the ball and chain to theig legs, or in any other way that may be deemed proper. All civilians will be tried by the civ'! tribunals, and be dealt with as the law directs and their abominable frauds eq justly merit. + Colonel H. S. Olcott is the commissioner appointed by the War Department to make the necessary investiga tions, This gevtleman has been employed since the ist of November last in the prosecution of his important du- ties. He has employed a competent short hand writer to act a8 secretary, and two interpreters to aidin the deve- opment of the voluminous é¢vidence, as most of the par- ties concerned as witnesses, &c.,are Germ ans, who do not speak the English language. ‘The investigations have ‘been conducted privately for the best of reasons, and, as has Deen seen, with great success. * ‘When the present rebellion broke out Congresa was not in session, and therefore no appropriation was pro. vided for defraying the expenses of the enrolment and sustenance of our new volunteer regimonts. These necessary expenses were paid either by the friends.of the officers, by voluntary subscriptions raised among citizens, or by the Union Defence Committee. But sonte time in the month of August, Congress beivg then in sez- gion, an appropriation of twenty millions was made for Tecruiting, organizing and drilling volunteers. Under the provisions of an act of Congress the Adjutant General's Department was made the custodian of the funde, and the mustering officers were eoustituted the parties for disbursing the money. Col. D, B. Sackett, Inspector Gene. ralof the United States Army, was at that tine on duty here as mustering officer, being assisted in the discharge of bis duties by several other army officers. During tbe xn- ménse rush of volunteers which folloyed the President's first call for troops these oMcers were overwhoimed with business; but, according to the act of Congregs, all the disbureements had to be made from there offices. Colonel Sackett found it necessary to have an enlarged ‘and concentrated department, and im consequence hired a suitable building in White street, where he removed his entire Dusiness and established a general disbursing office. The first. appropriation which he received from thf government was $5,000, which was exhausted in three or four days; for as soon as it became known that the goverpment was prepared to pay the ex- penses of recruiting regiments¥the special con- tractors and all persons baving claims upon the govern- ‘ment came down upon the office like an avalanche.’ The Cononel got no more money for three or four weeks, but in the interim the place was continually being invaded by creditors, and the bills for alleged expenses were accu” mulating by scores in his office, Everybody was clamor. ous for the immediate payment of their bills. Finally, Colonel Sackett got another olkeck for $100,000. This he s00n paid out, and late in the month of November he got another for asimilar amount. ‘The bills the subsistence and lodging of recruit® comprise @ specific statement of the number of lodgings furnished and the quantity of rations supplied im @ separate account, forming a general exhibit ef the whole amount of rations and Tedgings. This bas to be, oF rather should be, certified by the officer who recruitsthe men. The bill should be signed by the special contractor and then endorsed by the colone] commanding the regiment. But in the hurry and confusion which prevailed at the time of opening the office the name of the colonel commanding was some- times emitted, Colonel Sackett, on assuming the duties of his office, addressed the Comptroller of the War Department, asking how far the mere certificates of volunteer officers shoul? ‘be taken, and whether he should take affidavits from them or not, becaure it was notorious that there were many greedy men who had managed to creep into the army under various specigus pretences. Up te this time a general idea had very properly prevailed that an army officer was a straightforward, just and hovorall” man. But the volunteers. were to show how the rule worked with them. - Colonel Sackett got no respense to his communication, and was therefore compelled to act by the promptings of his own judgment, and to do as well as circumstances ‘would allew him, Now there are two kinds of contractors. ‘The regular contractor is one who passes in -his bids iy reply to the advertisements published by government. In these bids he offers to supply rations and lodgings Yo oldiers for any sum per head that the go- vernment may agree to. These contractors are com- pelled by law to give bende to the government for the proper performance of their contracts, The special contractor isthe other class. He is gonerally the keeper of a lager Dier saloon or small boarding house in the city. Perhaps be bas boarded some seven or eig!t men after their enlietment, until they are carried {nto camp, when they begin to be subsisted by the Quartermaster’s De- partmont. As far as the general contractor is concerned, here is, but little chance of his committing frauds, except it be by and with the connivance of the govornfhent officers. But this is not the case with the special con, tractors, as may be seen by the facts developed during this investigation, ‘When the tremendous pressure alreaty alluded to was brought to bear on the disbursing office, and there waa no money ready at hand to pay, these small contraetors would be always crowding the office and seeking for the Hiquidation of their accounts. They, therefore, were sub- jected to great loss of timo amd money, and eventually had to negotiate with the brokers of the city, who had established ofiges af convenient places, These broker, ‘Degan inn small way, saving bills against the govern- ment at ten, fifteen and reventy-| per cent, as they could agree with the contractors holdin: thom. Betng men of some capital, thesefbrokers adore bo walt until the disbursing Officer received a ch¥ck from ington, when they would present all tho bilis they had shaved" and receive the cash for thgin. The diebarsing officer, in order to protect the govern. ment as fer as Possible from frewd and impo- tition, not only required an aMidayit from the apeciat contractor, setting forth the correetness of his vil» ‘put also employed detectives to find that the men charged for Were sotually boarded and subeistod, If all thesg proceedings had been conducted in w straighiferward manner, and if all the detectives employed were honest and just, there would now be .no cause for complaint °, frosble, But it turned out otherwise. Lieut. Ce), ‘Nighole, of the regular army, relieved Col, Sackett on the ‘Mth of December as government’ disbursing officer, During the latter part of his term of office this brokerago Dusinens was at its height, and it went on getting more extensive until midsummer, when Capt. F. 8. Larned was placed im charge of the office, The brokers | about this time were doing an immense bneiness’ and bad bureaus organised throughout the city to get up all the fair bills they could obtain, and to maki oat falee ones besides, Not satisfied with the euermous profits they were making by shaving bills, they-would get the rogular blanks from the disbursing office, and» Dy bribery and other corrupt means, endeayor to get hold of some ignorant German understanding scarcely anythin, of English, and for @ small gratuity 1 him to sign ono of thede false bills. The plan was to find out fome small lager bier saloon keeper who had boarded | a few volunteers. They would then goto this man and ask Bim if he had uot boarded ome recruits. He would vaturally answer in the affirmative. Mey would then | offer to “buy ‘his ciaim, and. after’ some higgling, corhe to an agreement, They would then moke “ont @ fglse bill for a large amount and obttm the signa. ture of the Governor, who no doubt supposed that he was acting quite fairly. If necessary, they never besi- tated to forge the signature of the recruiting ofcers, eolonels of regiments, &c. When the forged bill was got up according to the form prescribed by law it was pre- Sepsed and the money received. 5 This outrageous condition of things has had no limit, and the more the brokerg grew rich on dishonesty the move active wore they in their operations, Within the past two montbs not less than forty forgeries have been discovered. Some of thé recruiting officers are among the parties implicated, and in other cases the colonels of Tegiments are themselves deop in the dishonest mire. A third form of cofnmitsing these forgeries and frauds upen the government is in this wise:—The contractor finds it necessary to have money, and he accordingly goes to the broker to shave his bill. ‘The latter sees his chance at once, and says that the bill is not made out in a correct form, He then tears it up, and offers the con- tractor, it may be, $50 for bis claim, saying ®at he will give no more for it,and that the contractor might go without money if he would not accept the offer. The un- Sortunate contractor finds himself in a serious difficulty. | He has already been at the disbursing office fifteen or twenty times in search of his money without being | able toobtain it, and his necessities press so hard upon him that he finds it absolutely necessary ty have some cash, He is, in fact, ip the hands of the broker, and is forced to accept his offer. The regular forms are then precented to him for bis signature, and, this being done, the broker goes to work and makes out a fravduleny Dill againgt the government, gonly a portion of which he is properly entitled to, It may be that the original bill ig for $100 or $200. The broker makes it out for $500 or $400. in signing these papers the contractor is not al” lowed to see anything but the place where his name is to be affixed, and this he does blindly, of in some cases by collusion, at the direction of the broker. Again, a man who has been a recruiting officer gocs to the keeper of a lager bier saloon where he has been paying small sums for the subsistence of some few: recrays. He says to the owner:—! have had some men quartered at your house for whom I have paid out of my own pocket. 1 have not yet received payment from the government. It is necessary for me to have your.signature to get my money.” The lager bier seller looks surprised. The confidence man produces the regu- Jar forms of blank Bills, and obtaips the signature of the German to what he represents asa vill for twenty five dollars, but which, when it js presented for payment at the disbursing office, has awelled to the extraordinary extent of fifteen hundred doliars, A day or two after getting the German’s signsture the recruiting eficor re- turns and says it is necessary to go with him before a notary and testify to the authenticity of his slgnature. The notary, who ig also in the*plot, asks no ques- tions, but proceeds to business. The German signs the paper before him, and, ag a witness, the notary countersigng and affixes bis notarial seal to docu- ments which are open frauds on the government from one end tothe other. This shows the complicity of some of the noturies employed, who sign such documents without asking any questions or administering the oath required by law. “One of the cases drought to thewotice of the Commis- stoner developed the fact that the Union Defence Com: mittee were paying forty cents per ration to certain von- tractors. The returns bad to be accompanied by regular vouchers, and tickets were issued to all the recruiting officers for subsistence of their recruits. It was found, however, that in many cases the specia! contractor has had to pay back five cents per ration to the colonel of a re- giment, and tothe quartermaster ten per cent on his gross 3,60 a8 to secure their favor and enjoy the continu” ance of bis contract. Thus, if chero bad been such a thing us honest dealing with the government, the recruits Drought imto the flekl could haye been previded for in this respoct at about one-haif the coat. ‘There are cages explored which show that the orderly . ‘ ECEMBER 27, 1862. PRICE THREE CENTS arbitrary arrests, all those who were arrested wore ro- leased and set at jiberty. The whole machinery of the government \*, however, in motion now, and the civil and military tribunals of the country will have work enough to dispose of the ac” cumulated mass of fraud and robbery to be brought be- fore them. The peculators who have been robbing the government apd the army without the slightest com. punctien, filling their coffers and fattening on the woes of the country, will soon be brought toa reckoning for their outrageous and shameful crimes, and when too late they will find that their game was a most dangerous one to play, and that, though The mills of the gods grind slowly, ‘They grind exceedingly five. NEWS FROM EASTERN VIRGINIA. The Election for Members of Congress, Sharp Skirmish with the Rebels, dic. Wasuinaton, Dea, 26 , 1862: A letter from Suffolk, Virginia, dated the 23¢ instant, States that the clection for members of Congress took place the day before, agreeably to the proglamation of | Major General Dix, , Contrary to the laws-of Virginia, ballote were cast in- stead of voting viva voce. In order to give the people of Smithfield an opportunity to show their attachment to the Union to ballot boxes were sent down to them, in charge of Lieutenant Colonel Underdonk, commanding two hundred of the First New York Mounted Rifles. Spesnge’ the rebels would be anxious to visit the polls, Colonel Onderdonk sent the boxes direct to Smith fleld, in charge of a sinall squad, and proceeded with the remainder of bis command to Windsor. Learning that the rebels bad left the place but a short time before, Colonel Onderdonk proceeded cautiously to wards the Iele of Wight, and when about three miles out came up with them. He sent his eOmpliments in the shape of shell from his howitzers, and they responded handsomely with six-pounders, Ashort skirmish revealed one regiment of robel in- fantry, with two pieces of artillery and some cavalry. * Colonel Onderdonk then, thinking it would be safer to look up voters nearer Snffolk, slowly retired. The rebels attempted to surround him, and at ono time were only one hundred and fifty yards in bis rear, ythere- upon Colonel Onderdonk suddenly wheeled bjs command ' about and fired a volley, which emptied twenty of the robel saddles in quick bane. ‘The skirmishing continued for six miles, Two prisoners ‘and one horse were taken from phe reb Noue of our men were lost or injured. , Ibis thought it will boa long time before the election returns@come in from Smithfield. Nansemond ‘polled thirty-nine votes, twenty six of which wero for Mr Cooper, twelve for Mr. McCloud and one scattering. INTERESTING FROM FORTRESS MONROE, Another Skirmish With the Rebels on the Blackwater—Success of the Union Troops—News trom North Carolina, dc. A Fortress Monror, Dec, 25, 1862. Lieutenant Colovel Stietsell, of the Eleventh Pennsyl- vania cavalry (Colonel Spear’s dashing regiment), had a warm engagement with the enemy at Jojer’s bridge, on the Blackwater, yesterday, four miles bove Franklin. He drove the enemy’s pickets on this side of the river, capturing four of their pickets, one cavafryman and horse, and three infantry soldiers and their arms, Colonel Stietsell’s advance, with their carbiiers, under the gallant Lieutenant John 8. Ropes, first engaged the enemy at short range. Finally, discovering the euemy iu superior numbers above and below us on the river, with our very small force of four small squadronsdii peril of being flanked, Cclouel Stietsell very wisely concluded to retire, which he did in safety. ‘The following is from the Newbern (N.C.) Progress of December 18:— The funeral of Col. Gray, of the Ninety-sixth Now York regiment, was attended on Wednesday afternoon, the Fighth Massachusetts regiment and the Third New York artillery doing escort duty. Col. Gray was killed at the Dattle of Kinston. He had been in the seven days) battle before Richmond. The Free Labor Association of Craven county is rapidly gaining strength. EK. W. Carpenter, of Newberu city, 16 President. ‘The free labor nomination for Congress has been ten- dered to Charles Henry Foster, who declines, having already applied to the authorities for permission to raise a second regiment of North Carolina Union volunteers. The schooner Alice D. Webb, released to her owners by order of Gov. Stanly, has been retaken by special autho_ rity from the Navy Department. THE PORTER COUR? MARTIAL. Testimony of Major G Lieatenant Cel Martin. Wasmnaton, Dec. 26, 1862. sergeants bave sometimes been directed to return more men than were actually subsisted. The Commissioner began his investigation by going into the charges made against the brokers, and, after they “had, for the most part, been disposed of, the Secretary of War placed in his hands a bill whieh ‘ad been collected by the colonel of a New York regiment, and to the correctness of which he had made his affidavit. Mr. Oicott bas found that that Dill was. accompanied by a mumber of sub-vouchers: for boarding, lodging, &c., for recruits. On close examina tion only two real names were found attached to these documents, and these two names were forgeries; the Test were fictitious names of persons having no khown existence. He found that the colonel had perjured him- self and swindled the Unfon Defence Committee, thdi- vidual citizens of New York, the general government, and every one of bis officers and soldiers; that he had turned officers out of their commands on frivolous pretoxts, and sold their commissions w others In short, he had been engaged in a course of swindling of the lowest and | meanestekind, such as one would scarcely suppose that athird clase pickpocket would be guilty of. It is pro- bable that this ian has been arrested by this time. 1t is very probable that the Commissioner will take up the cases of several other regiments recruited in this city, concerning which the government is in possession of valuable information, The developments in the case of the colonel mentioned above will by rich aud racy, although it is not considered wise to publish them just now. ‘This officer will be proved to have been engaged in @ long career of frau! and all kinds of crime, and yet be succeeded in imposing upun, large number of our most prominent citizens. Within d week after the commencement of the present investigation many false bills which it is known were ready for presentation were withdrawn. One of these | was for $6,000. Among the various smccessful fraud | there was ove eace Where a man obtained $1,175 for a bil! of $50. In the robberies of #!] Rinds in the department of lodg- ing and subsistence for recruits, by forgeries, excessive | charges, &c., om the disbursing office, the government has been defravded to the extent of $700,000. This, it must be remembered, is only ina sipgle department. The same system of gross fgaud is.goimg on all through tho Cnited ‘States in almost every department of the public service. ‘gut West il is said to be far worse than it is here; and it i safe to say, from the result of this inquiry, that there is scarcely a bill presented to the government that hus not passed (rough some fraudulent channel. The investigations, as we have said, will be re. gularly continued i this city, and there is scarecly a donbt cntertained, that high government officials wiii be impKeated, although the evidence on this point is not yet rondy to be lafa before the pablic. The press has hitherto been silent concerning these frauds and the investigationa which have been going on in tbis city, 80 that n@ undue publicity should be given to facts whieh would injure the government cause aud im. pede the course of justice. The public has, therefore, known nothing of these colossal frauds. It now appear, (iat many of the arrests made in this city some months ago without apparent cause, and which were attributed to political causesand (he rise of a military despotism, bad their origin in the frauds now being brought to the light of day, The government, instead of infringing on popular rights and pertonal liberty, did not arrest one-tenth of the men who ought to have been ar- rented for fraud and peculation; and, during the agi tation cased by the Bue apd cry againe tee sysiom of | light on the morning of the 25th to Bristow Station. | corroborated the tostimony of Lieutenant Colonel Locke before » The were on the move oy ier At M. ot shor after, Ho. did not kuow at what hour his (More. Givision was moved. The Cour: Martial {2 the case of Fitz Joba Porter re- sumed its sessions this inorning. Lieutenant Colonel Locke, of General Porter's staff, and his Assistant Adjutant General, was the first witness ex- amined. He knew of the orders received by General Porter from General Pope preceding the march commenced on the morning of the 28th of August for Bristow Statioa. On that morning reveille was betweenfove and two A. M. It was intensely dark, and the roads were impassivie for infantry until cleared of obstructions. on the march to Gainesville he beard General McVowell teil General Porter that he was too far out with his men, as ‘that was no place to have a fight. The two bad a private conversation for geome minutes, and then they rode off on horseback, Afterwards Gencral Porter recalled the troops sent io advance. There was no retreat. His corps remata- ed till next morning at daylight. The batteries were in place. Gen. Porter made every possible exertiun to clear the road to Bristow Station, to enable his corps to march, on ‘th and 28th of August. His stat! assisted him, as also @ body of cavairy, a detachment of which was assignod to him at Cat! Station. On the evening of the .20th Captain Pope brought an order from General Pope to General Porter. This was an order to attack the enemy General Porter iustructed me to go immodi- ately to General Morell, and have his t ad- vanced forthwith, and he would follow alter him. Captain Pope delivered his order about sundown, Witness was attached to General Porter's qgad. and was with him during the time he was under Geueral Pope. About baif-past three o'clock next morning a eecond order came trom General Pope te march at once to the battle field. An officer was sent direétly to General Morell, directing bim to cull bis pickets in aid prepare for instant mareh. General Sykes’ division was also put under arma. General Porter showed no indjsposition to aid General , but acted wisely, to the fMiest extent of his ability. In co-operating with General McDowell’s cqjuma there were dense and continuous roads to be marched through. The troops began to move befure day- Captain Martin, of Battery C, Massachusetts artiliery, ‘as to the darkness of the night when the march for Bris. tow Station was commenced, He also heard General l'ope tel! General Porter, on the 20th of August, when they were on the way to Gainesville, that he was too clore to the enemy, and that that was no place to fight. Generai_ Vorter presented, through bis counnel, a writ ten protest against the reception of certain evidence on the part of the government, which he had deemed inad- missable; and the Court was cleared @ few moments to deliberate Major Genora! Morell testified that at the time the al- loged offences charged against General Porter were com mitted, he was in command ef. the tiest division of bts corps. | He was presem when an order was received by Govera) Porter from General Pope, ou the evening of the 27th of August. This order was to march at one o'clock next morning. Gen, Sykes and Gen. Buttertield were present when he order came, er very som afterwards, He ssid that, cousidering the wearied con- dition of our troops, the darkness of wight and the obstructions of the road, no betier progress could be made by bapethen | 1 this hour than at daylight. Geveral Porter said :—*Wo will start at three o'clock,” and or- dered that the commands be got in readiness, It was very dark and threatened rain, and it did rain If we had moved at ene A. M. the mea would hate been broken of their whole night's sleep. This was what he and the other officers wished to avoid. In the opening of the march there was a good deal of djMeulty in making progress, On acoount ef the darkness and obstructions in the road. Gen. Sykes’ division led that morning. The men were advanced as rapidly as peasible. The Court here adjourned to eleven A. M. to-morrow, when the testimony ef Gen. Morellwill be resumed. On Monday Gen. McClellan and Gen, Burnside are to be ox amiued, Diernees iv Nasuvinte.—The Nashville nion saya that nearly one thousand families, belonging to seidiers now in the rebel ervice, or who bave bean killed or died in that service, are tm that city without Lone oye) or wood, and ake daily making piteous apponin to the fede ral authorities for relief. cousiet A.D.1862. Twelve Months Record of the Rebellion. Achievements of Our Improvised Army and Navy. yoann One Year’s Index to the New York Herald. The Capture of Forts Henry; Douclson and Island No. 10—Naval Engagement at Memphis—The Taking of Bow Or. Mill Spring, Roasoke Island, Corinth, Yorktown, the . Siege of Richmond, the Ac tions a South Mountain, Aniecttam, Crawford Prai- . rie nd Preder! burg, aot Kinston and G ae, &e., OPERATIONS*IN JANUARY AND FEBRUARY, We begin tee, the publication of our chronol By of the events of 1862. Its great length prevents the entire publication on one day. We shall con- tinue to give one or two months per day till the whole chronology is published. It will form, when complete, an index to the New York Hzraxp for the, past year, and be of great value to the reader and historian, and should be earefully preserved for re+ ference. id Wednesday, January 1, 1862. Tho dawn of the new yoar gave @ distinct view of the gigantic proportions of the rebellion, and showed the peo ple of the loyal States pretty plainly that a large degree of patience must be exercised and severe labor performed be" fore it could be put down, A battle took place on Port Royal Island, South Caro ina, between General Stevens’ brigade and a rebel force, im which the Union troops were sigually victorious, A number of rebel batteries were destroyed, and the rebels driven from the island, Our loss was one killed and nine wounded. Enemy’s loss not known, although they admit having six killed and twelve wounded. _ Fort Pickens opened fire on the rebel batteries at Pen- $ sacola, which was responded to, The firing continued ~ nearly ailday, A breach was male in Fort Baraneas, and the town of Warrenton was eet on fire, and ‘the éonm- ~~ flagration continued all night. Only oné man wag injured jn Fort Pickens. \ Qd.—James M. Mason, John Slidell, George Bustis and Jumes E, Macfarland, the rebel commissioners and their clerks, who were taken from on board thé British steamer Trent, by Captain Wilkes, of tho United States steam fri- gato San Jacinto, left Fort Warren, in Boston harbor, “” where they had been detained as prisoners, and embarked of board the English gunboat Rinaldo, at Proviteetown, Mase., and sailed for England. Afight occurred between the Union gunboats Yankee and Anacostia, of the Potomac flotitia, and the rebel bat- tery at Cockpit Point. The missiled from the rifled gus of the battery struck the Yankee, doing but small damage. Several of the projectiles from the gunboate took effect in the midst of the battery, 3d.—Iwo hundred and thirty-nine Union prisaners, who bad been captured at Rieuinond, arrived at Fortress Mourve, having been exchanged. ‘The Union troops took possession of Big Rethel, Va., the rebels having evacuated the place. 4th.—sevon hundred and fifty Union troops were sent by General Milroy to attack Hattonsville, in Western Virginia, which place was occupied by the rebels ag @ depot for supplies, An engagement ensued, and the enemy was driven from the place with the loss of eight killed and woundgd. The Unionists did not loge a man. About twenty-fivé thousand dollars worth ef rebelarmy stores were destroyed. A large force of rebols attacked the Fifth Connecticet regiment, which was guarding the railroad in Virginia, op- posite Hancock, Md. The Unionists were ferced to retire across the Potomac. The rebels then tore up the railroad track and destroyed the wires, The rebel General J }) With « full force, appeared at Bath, Va., where there were but about one thousand Union troops. An attack was made by the whole rebe! militia, fifteen thousand strong, who were twice repeised: by our volunteers. Subsequently General Jackson’s rega- lars made an attack in front, at the same time executing 4 flank movement, when our troops fell back on Hameook. Sth.—The rebels frem the opposite side of the Poto- aac river shelied the village of Hancock, Md., and injured @ number ef buildings. They were driven of by ther jon artillery. No loss of mén on our side, 6th.—a party of four hundred rebels were attacked by ‘8 detachment of the Thirty-second Unio regiment, sen® out by General Milroy, im Tycker county, Va., and routed, | The rebels lost four willed aad a large number wounded. A rebel encampment of one thousind mea, under oman named Poindexter, in Howard county, Missouri, was ate tacked by five hundred Union cavalry, under command of Major Hubbard, and completely routed. The Union loss was three killed and ten wounded, and the rebels lest .. seven killed, twenty-five wounded and fifteen prisouers, ‘Tth.—Goneral Garfield, with twe regiments aad thrée hundred cavalry, entered Paintville, Kentucky, The rebels, under Humphrey Marshall, fledon the approach of the Union forces. General Garfield’s cavalry pursued and engaged a of rebel cavalry, Rilling three, wounding eight or and taking fifteen prisoners. The Union loss was two killed and one wounded. ‘A cousiderable forco of rebels were surprised and rout ed near Romney, Va, by a Union force under Colonel Dunning. The rebel loss was not known, Dut eight dead bodies were found among the rocks. ; ‘The Legisiaturo of the State of New York metandor- ganized , 8th.—Four hundred and fifty Union troops attedk. ed the notorious rebel Poindexter, with from one thousaa® to one thousand three humdred men, om Silver ereek, “ Howard county, Missouri, totally routing them, witha Joss of sever ie(t on the fleld and many more carried off, and from fifty to seventy-five wounded and thirty pri- soners. Our loss was four. Tho rebel camp was destroy- ed and a large number of horses taken. 4 detachment of Union forces, under Col. Dunning, overhauled the rebels, two thousand strong, at Blue's Gap, Va, aud completely touted them, killing @fteen, taking twenty prisoners, besidés capturing two pleoes of cannon, all their camp equipage and several wagons, ‘he Provost Marshal General of St. Louis issued an order requiring all publishers of newspapers in the State of Missouri, St. Louis city papers excepted, to@urnish him a copy of each insye for inspection, and failure with whiok: order rendered the paper liable to suppression. ‘Oth.—A slight skirmish took place near Pohiek run, Va, Afver the first are the rebels ran off, witha lom ef wwe Killed and o> wounded, The Union loss was one killed, 10:h.—General Garfield, with his main force, haying left Paintville, Ky., in pursuit of the rebols, voder command of Momphrey Marshall, came up to him at the forks d¢ Middle creck, near Vrestuoburg, Ky, The rebel force wa two thousand five hundred, wile the Untonists werg threo thousand stiong. the rebels were routed, with the lone of thirty killed, 2 large uumber wounded and twenty-five prisoners. The Union Ines was two killed and twenty-five wounded, ; An engagement took viage, and toreg The Union troops evacuated Romne; wero expelled (rom the United States Senate, for treason. An expedition called the Burnside expetiti i of one bundred and twenty-Gvo vessels, em: th * :