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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 eastern side, extending back four or five miles and forming a junction with the line on Missionary Ridge, our guns on the two elevations commanding the Chattanooga Valley below; the line forming the western side extends southwest beyond the point opposite the junction of the eastern line with that on Missionary Ridge. The Sun adds:

‘ The abandonment of Mount Lookout by our forces would nor, necessarily, cause the abandonment of our position on Missionary Ridge, but it would enable the enemy to open railroad communication with Middle Tennessee, and give him the quiet and undisputed possession of his present position in Chattanooga, which is probably all he designs for the present. Even the possession of Raccoon Mountain will enable him to resume communication by railroad from that point to Bridgeport, and enable him to establish a depot of supplies some ten or twelve miles from Chattanooga; but, in attempting to move supplies from this new depot by wagon trains, he would have to cross the river twice--first at Raccoon Mountain, then at Chattanooga.

’ The Marietta Rebel, of Saturday evening, in its article on "the situation," says:

‘ To make a front assault upon the enemy's strong position is given up as totally impracticable, at the same time that it is generally conceded that he can be drawn from the shelter of his star forts and rifle pits by a flank movement, and by that alone. We feel satisfied that one of two events will take place before a great while; either Bragg will flank Grant, or Grant will flank Bragg. Heaven defend Georgia and the South from the last, and God speed the advance of the Army of Tennessee into the land of wool and grain and comfortable winter quarters.

’ The correspondent of the Atlanta Intelligencer writes from camp before Chattanooga, October 29, as follows:

‘ A division of the enemy, escorting about one hundred wagons of supplies and a number of ambulances, came up from Stevenson yesterday, by the way of Jasper, and crossed to this side of Kelly's Ferry, ten miles below Lookout, coming up Lookout Valley to Brown's Ferry, three miles below Chattanooga, where they have just finished a pontoon bridge. After a skirmish with our picket, (two regiments,) our men fell back, and the train succeeded in passing — the wagons crossing at Brown's Ferry. Our men, as they fell back, attempted to burn the bridge over Lookout creek, but did not succeed. This is quite a success for the Yanks, who will now make an effort to get the possession of this road, that they may thus obtain supplies, which would set them on their feet again. They will not be able to obtain the possession of the Nashville and Chattanooga Road on this side of the river, so long as we hold Lookout; but they may, as is already seen, cross below at Brown's Ferry, and, consequently, measures will be so taken, no doubt, to cut them off from this means of communication.

Lookout Valley is formed by the west side of Lookout Mountain and Raccoon Mountain. The mouth of Lookout Valley terminates towards the river at Brown's Ferry. It is a continuation of Will's Valley, which is formed by the slope of Lookout and the continuation of Raccoon Mountain, called Sand Mountain, running southwest. The Will's Valley Railroad runs from Chattanooga to Trenton, a distance of 21 miles. As the enemy now controls the occupation of Raccoon Mountain they will be able, unless driven out, also to hold Will's Valley. The bridge over the Tennessee, which crosses Long Island at Bridgeport, is nearly completed by the enemy, and it is reported will be finished in ten days. They have then only to rebuild the bridge over Running Water Creek, 15 miles below Chattanooga, to obtain the full occupation of the road up to Brown's Ferry. This will soon enable them to take the offensive, and if they make another flank movement by Will's Valley will necessarily compel us to fall back. Our plans however, which of course are not known, may change the whole complexion of things.

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