Hec -R. J. Oglesby to Henry W. Halleck, August 23, 1861

SIR:

In the affair of the little steamer W. D. Terry, taken by Captain Stembel, of gunboat Lexington, yesterday morning, at Paducah, Ky., I had indisputable proof, which an examination of her papers found on board confirms, that she was running in the employment of the Confederate States. Without hesitating upon the neutrality of Kentucky, I ordered her capture. She turns out to be of no great value, say, vessel and furniture, $3,000. To the Confederates three times that sum will not compensate the loss. I have had her valued by a commission of my own appointment, and the papers filed at these headquarters. Iam. at a loss what further to do with her legally. Of course I shall use her, if necessary to do so.

Of course Paducah was in confusion, and his excellency the governor may become indignant. The result is, that yesterday the crew of the Terry, led by the captain and a few citizens, seized the steamer Samuel Orr, from Evansville, the private property of private citizens of Indiana —a retaliation more vindictive than sensible, as they thus destroy the last means of illicit trade with the border States north of the Ohio. Nevertheless, they have the boat and cargo, worth, say, $25,000. I would like to go up the Tennessee River and make the reprisal. I send herewith a copy of the statement of the captain and officers of the Samuel Orr, and also transmit copy of report [No. 3] of Capt. R. N. Stembel, commanding gunboat Lexington.

Hoping my action may meet your approval, I am, most

respectfully,