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No. 1.-report of Maj. Gen. E. Kirby Smith, C. S. Army, with instructions in reference to enlistment of Union refugees.

Hdqrs. Department of East Tennessee, Knoxville, Tenn., April 18, 1862.
A body of 700 Union men en route for Kentucky were attacked to-day [yesterday] by Captain Ashby above Fincastle. After a short battle 400 were taken prisoners, whom I will send south to-morrow. Where shall they go I General Carter claims by a flag of truce a like party captured some weeks since to be Federal troops.

E. Kirby Smith, Major-General, Commanding. General S. Cooper, Adjutant and Inspector General.

Knoxville, Tenn., April 23, 1862.
Sir: On the 17th instant 475 Union men of East Tennessee were captured en route for Kentucky, and sent, by Major-General Smith's order, on the 20th instant, to Milledgeville, Ga. Some of them expressed a wish before leaving to enlist in the Confederate States Army. They were not permitted to do so, because of the apprehension that they might [not] be faithful here to their oath of allegiance. Elsewhere they may make good soldiers. Remembering your request, the majorgeneral commanding directs me to say that you have whatever authority he can give you to proceed to Milledgeville, Ga.. and enlist as many of them as consent for service in South Carolina, or elsewhere except in East Tennessee.

Very respectfully, your obedient servant,

H. L. Clay, Assistant Adjutant-General. First Lieut. Julius M. Rhett.

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