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The situation at Chattanooga. The struggle for the possession of Mount Lookout and the Nashville and Chattanooga Railroad has commenced. The enemy has taken possession of and fortified Kaccoon Mountain, an elevation parallel to that held by our forces, and which commands a portion of the valley between it and the Lookout range. The Columbus (Georgia) Sun tells us that it has a greater elevation in its range southwestward than does Mount Lookout, and commands the latter some ten of fifteen miles south of the river, though not so high by several hundred feet at the point near the river. The enemy's batteries on Moccasin Point are some fifteen hundred feet lower than ours on Lookout Point, and all approaches to our position except by flank movement on the Raccoon Mountain and an advance upon our rear, seems impossible. Our lines of defence on Mount Lookout form a V, the aper of which rests on the south bank of the river, some 2,700 feet above the water; the line forming the east