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[43] in sight of Leavenworth. They reached this point about two o'clock yesterday. They had left several of their men on the opposite bank of the river, and the plan as arranged was for the latter to be at Blue Island at daybreak this morning with a ferry-boat to take them across. The reception by the inhabitants and the pursuit by Major Woodbury not having been looked for, hastened their departure about fifteen hours, and consequently the ferry-boat was not ready at the crossing-place. At the ford they discovered a force of home guards, so strongly posted that their hope of crossing by that means was cut off. The steamer Izetta had just reached Leavenworth, and the home guard at once placed a piece of artillery on board, and moved up the stream. They opened fire on the rebels and forced them to go still higher up, where the water was deeper. A small boat happened to be passing down at the time, and the rebels hailed her in the hope of capturing her, thus obtaining means to cross the stream. As the Izetta was firing on the rebels, the descending boat suspected their character, and refused to land.

At the same time the land force of home guards moved up the bank of the river, so as to get in the rear of the rebels. These home guards were from Leavenworth, and were commanded by Major Clendenin, a resident of that place, who served in one of the earlier Indiana regiments. As soon as the rebels saw the approach of Major Clendenin's force they at once plunged into the river and attempted to reach the island by swimming. The Izetta opened upon them with her artillery, and with her small arms as soon as she came within range. At the first fire of the latter four of the rebels were killed outright, and as many more wounded, so that they were unable to swim, and were drowned in consequence.

Major Clendenin's men were not long in reaching the scene of action, and opening fire, they added to the havoc caused by the Izetta, and as the boat passed between the island and the rebels, the latter saw there was no hope of escape. They turned their horses' heads toward the Indiana shore, and threw up their hands in token of surrender. One of their number produced what had once been a white handkerchief, and waved it vigorously until he reached dry land. The leader of the band took off his sword and advanced, holding it by the belt, as he looked around for some one to whom he could deliver it. The entire mob, seventy in number, were models of dripping meekness. One only of the entire party crossed the river to the Kentucky shore. He was welcomed by a citizen of that State, who at once took him prisoner.

Just as Major Clendenin was receiving his prisoners and taking an account of the captured property, Major Woodbury with his cavalry made his appearance. They were deeply chagrined at not having been present at the capture to which they had so largely contributed. The honor of the affair is to be divided equally between Major Clendenin, Major Woodbury, and the home guard from Mitchell. The latter by their resistance, and Major Woodbury by his pursuit, completely broke up the plans of the rebels. By driving them to the river fifteen hours before the appointed time, they threw them out of the plan that had been made for crossing, and enabled Major Clendenin to complete the capture.

Five horses were lost in the attempt to cross the river, but the remainder fell into our hands. Those that were stolen from the citizens are being returned to them. The captured arms were loaded upon the Izetta, and will arrive here to-night.

The prisoners are now here, but will be sent to Louisville. They say that if their plans had succeeded, they would have broken the railway between New-Albany and Mitchell.

There is some dispute as to whether they will be held as regular prisoners of war or as guerrillas. They claim to belong to the Second Kentucky cavalry, and properly attached to the rebel army. The matter will be decided at Louisville.

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