Murder of a soldier — excitement in the city — powder Mill, &c.
[Correspondence of the Richmond Dispatch.] Petersburg, March 9th.
The excitement created by the demonstrations of the steamer "State of Virginia" upon the enemy's forces near Newport News, was increased by the murder of a Louisiana volunteer, about 10 o'clock to-day.
A member of company F, Clarborn Guard, 2nd Louisiana Regiment, by the name of James Sheridan, was murdered by a member of the same company, named Willson by stabbing him in the collar-bone.
He expired about five minutes after he was stabbed.
The murderer was found ensconced, in about two hours afterwards, in a free woman's house in Pocahontas, about two hundred yards from the place the man was murdered, and arrested by officers Peterson and Ledbetter, and conveyed to jail.
This occurrence and the news from Norfolk, has created the wildest excitement in our city.
The powder mill is nearly completed, and will be in full operation in two or three weeks.
The militia have been enrolled, numbering about 1,000, one-half of which, I suppose, are capable of performing active duty.
Several new companies are being organized in this city for the war. T. Jay.
[The foregoing letter should have reached us two days ago. We are unable to account for the delay.--Editors Dispatch.] 