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From Portsmouth.
[special Correspondence of the Dispatch.]

Portsmouth, Va., May 27, 1861.
Fame was flaunting about the streets yesterday in her most attractive brocade. She seemed, however, too pert and fancy to prove attractive to the more sober-minded or less enthusiastic of our denizens, who received her flourishing amplifications and parade of words cum grano salis. All were so far deceived by her glittering show as to believe that a battle had been fought in or about Hampton, for many had heard the discharge of musketry and the enemy were seen through a glass — darkly, as it has turned out — from Sewell's Point, escaping for their life into the fort at Old Point. We were told that a battle had been fought, that 700 of the Baboon's hosts had been slam, 200 taken prisoners, and that the flag of the Confederacy, the glorious ensign of the South, now the beacon of liberty, was seen floating in proud and calm triumph at the farm of Mr. Joseph Segar.

But this morning I have ascertained these flaunting of Madame Rumor to be the merest romancing, and that there is not a word of truth in the reports. No battle was or has been fought, and consequently none killed or wounded. The cause of the rumor is as started by a gentleman from Hampton. It seems a body of troops, companies of Zouaves, marched into Hampton Thursday or Friday, and marched back again, and the firing was simply the discharge of their arms after reaching their camp ground. So much for the famous battle. Hampton is completely deserted, and contains but two white inhabitants.

The report also is that the tug Yankee has been captured a short distance up York River. That a Pungee with one or two hundred armed men went within hulling distance, for the purpose of being brought to — that she went alongside the Yankee, and the contents of the Trojan Horse were emptied upon her deck, and took charge of the prize. This is said to be an accomplished feat.

The train, on Saturday afternoon, brought an additional force of negro laborers, intended for work on the several defences in, around and about the harbor. The steamer Pocahontas, of the baboon's squadron, went to some point on James River, on Saturday afternoon, containing troops who are to run or imperil their lives in the despotic cause of the Illinois baboon, which is now the cause of Northern despotism — the cause which denies to a free people the right to be free — the inalienable and indefeasible right to govern themselves — for which our fathers fought the war of the Revolution. And in order to make more sure the blessing they achieved for themselves and their posterity, they sent delegates to the Federal Convention to amend the old articles of Confederation in order to form a more perfect union."The Pocahontas returned empty on Sunday morning. On Saturday evening, there was a light or fire seen from the Northern extremity of Crawford street, of this city, opposite Norfolk, in the direction of Old Point and Hampton.--Some said it was the calcium light at Old Point; some that it was the burning of undergrowth and brush in the region of Tanner's Creek, where companies had been engaged in cutting it away to make encampments. Some others said it was the burning of the bridge over Mill Creek, by the Hamptonians. This last was the true surmise. That bridge has been destroyed by the Hampton people — burnt up.

Several steamers are said to have reached Old Point Sunday morning--supposed to have conveyed to that post large reinforcements.

The steamer Minnesota left Old Point on Saturday evening with troops, destined, it is said, for some point on the coast of North Carolina. Ocracoke is prepared to resist a landing from boats, the only mode by which a landing can be effected there; and defences are erecting at Hatteras by officers of the N. C. Navy. It is reported, while I am writing, that the Ape's minions have effected a landing near Elizabeth City; but I place no confidence in the rumor. Also, I hear that troops from Old Point have landed at Newport News, simply to prevent the erection of batteries by our men, and the rumor is no doubt well founded.

A flag of trace brought by a tug from the gallant Pendergras: and Company, was brought to off Craney Island, and her progress stopped there. She came to take away the wives of those who have cast their lot and future with the enemies of her Government — the barbaric North which is now seeking to effect the subjugation of the South and an apportionment of the fair domain of Virginia among the lecherous minions of Lincoln — the demoralized, degraded, and hell-bound wretches of New York and New England.

I just learn that Lieut. Wm. H. Murdaugh has been released by the officers of the Chimpanzee. He is a native of this city, and will prove a valuable acquisition to the Navy of the Southern Confederacy. He has seen a large portion of actual service, and had charge of the coast survey in this district for some time, in which he served with distinguished ability. Such are the men we need — young, active, energetic, full of decision, coolness and bravery to the brim. We want such men for the times. Such is Wm. H. Murdaugh.

Old Dominion

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William H. Murdaugh (2)
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