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ng intervals to the enemy's fire. One shot from Sumter is reported to have struck the enemy's observatory, erected on Craig's Hill, Morris's Island. The Yankees have an immense derrick, and are reported placing more guns in position, fortifying, CrCraig's Hill, and also Black's Island, between Morris's and James's Islands, of which they are reported in possession. About 8 o'clock in the evening the steamer Gabriel Manigault, lying in a creek between Morris's and James's Islands, was burnt by th, when the firing became more rapid. Fort Sumter continued to throw shells with effect at the Yankee working party on Craig's Hill. An officer from battery Wagner, who arrived last night, reported the enemy throwing up rifle pits and entrenchments. Their working parties are plainly visible, both on Craig's Hill and Black's Island. Four mortar boats were observed for the first time Tuesday inside the channel, one of them seemingly placed in a position to cover their working parties. The monit