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THE NEW YORK HERALD. " f ? WHOLE NO. 9601. NEW YORK, SATURDaV^ DECEMBER 27, 1862. PRICE THREE CENTS OIE WIH LITER FEOI EDBOPL THE EtBOPA AT HALIFAX. Concentration of the British West India Fleet. Tli English Abolitionists in Support of the Emancipation Proclamation. s * FRENCH KE1NF0RC1XENTS FOE MEXICO. fl?neral Prim Defends the Withdrawal of the Spanish Trtepi* He Prophesies Poor Results for France. Qaribaldl't Son Mortally Wound ed in a Duel. THE ATLANTIC TELEGRAPH, Ac., Ac,, to. i Hiiipai, Deo. 20,1802. At Bteamuhip Eoropa, Captain Moodie, from Liverpool at eleven o'clock A. M. ou the 13th, Via Queonntown even, teg of the 14th inai., arrived 'at this port at half-past ten ?*ck>?k last night, with thirty-three patsueugers for Bos tea, and E^led again for that port at daylight this morn w A despatch from Liverpool, dated on Sunday the 14th teatant, taye the political news ia generally of an unim portant character. The ateamt>hip Teuton la. from New York, arrivfd at Southampton on the 12th inst. The steamship Ktna, from New York, arrived at Liver pool on the 11th Inst. THE AMERICAN QUESTION. Concentration of the British Wut India Fleet-The English Afcolltlonlets In Aid of the EMnclpatlaWroelKmatiOB, 4c. The newspaper comments upon American affairs are generally of an unimportant charter. The London Shipping. Gazette says the war steamer Ariadne baa been ordered to leave Halifax, and after ?felting New York to join Admiral Milne's squadron at Bermuda. This movement looks like a concentration of the disposable force of Milnc'^ squadron in the localities in which recently reported outrages on British shipping By federal cruisers, wbicb have been perpetrated with a knowledge that there is no forot at hand capable of pro tecting British vessels, and with instructions te do so. She Gazette thinks that even Wilkes will hardly venture ?pen further molestation or violation of neutral territory, The reoently formed I/radon Emancipation Society hod petted circulars to ministers of all denominations, urging ?mb to give prominence to the subject of negro emanci pation from their pulpits, In view of the inauguration of Mr. Lincoln'a emancipation policy with the new year. The London Star says a most enthusiastic meeting Bm been held at Lamboth, to express sympathy with the nnti slavery policy la America. About three thousand persons were present. A return shows that during the present year forty six American ships have been registered at Liverpool under British names. The Atlantic Telegraph. A general meeting of the Atlantic Telegraph Company ?M held in London on the 12th. Hon. James 8tuart Wort ley presided, and stated the terms on which it was proposed to raise ?600,000 new capital, as already pub lished. He announced that within three days the ?"{>,000 fend, In response to the circulars, been subscribed. A resolution was carried to raise the now capiat in shares ml U each, for laying down a new cable. Tbe meeting was regarded as the mo4t encouraging and Meceesful. The London Ifeux. Star and other'journals warmly ad vent* tbe claims of the company. The London T;r,utt ?ays notification is advertised that tbe new undertaking ISr laying tbe cable has been formed with Continental ?npport, and will shortly be Introduced Francs* There arc again rumor* in Parle of unfavorable news (Tern Mexico,and urgent calls tor reinforcements, which, M te anld, will be sent under the device of establishing a icasns at Martinique. The Archbishop of Pnrls baa gone I* Rome, it h rumored, In the name of the Emperor to explain to the Pope the Emperor's views, with a view to the con cessions necessary on the part of the Pontifical govern The bourse was doll, rentes Mf. fife. Italy. Parliament reassembled ca tbe 11th instant. Varint explained hie policy end tromisert administra tion reforms, based upon the system of decentralize t*oa and development of constitutional liberties. He oatogteed the army for having, under a painful trial, re established the authority of the laws. He said "with unshaken confidence in the accomplishment of Italian salty, we abctaln from making promisee which might act be followed by immediate effects, and await the ecu see of evente without Illusions and without dis *ouragement. We shall be careful te maintain alliance whilst preserving the independence of tho country." He oonclnded by appealing for Italian concord, which Is per. asalfied In tbe King. la a dud between Garibaldi's cMeet son and Colonel Pallarlclni, who captured Garibaldi, the young man la nald to have received a mortal wound ia the sine, and tbe Colonel wss seriously hurt ^aln. General Prim has made Ipngtby explanations in the Cortes on tbe oendnct in Mexico. Be read confidential letters addressed to htm by Admiral LaGravlere,contain ing strange details relative to the Mexican expedition. Ac cording to these letters Almonte declared he was authorized fey Napoleon and Archduke Maxmillian himself to put for ward the candidate of the latter, and that the French troops would guarantee tbe throne of Mexico to the Arch duke. Gcoeral Prim also road letters of O'Ponnell and Collantes recommending the strict execution of the trettg of London. He said an English representative had made aimilar declarations to him; and th it under the elrcum ctanoes bo deemed it wise to embark for 8p.ih. In con elusion, he expressed his opinion that tbe French expedi tion would not have the desired result. ' Umbo* a. The Imperial Rank of Russia nas reduced lie rate of diFconnta from fin t.> 6. The anoonnooinent that Russia contented to the candi daturo of King Ferdinand, of Portugal, to tbe Greek throne, is unfounded. It l? rumored that M. Petersburg will be shortly de clared a rroo port. ? i, ? Commercial Intelligence. TBI LONDON MONRT BCRKST. Consols closed on Friday. December 12, at Wl< a for ovmey. Tho bullion in the Bank nas decreased ?172,000. The sale* of American stocks litre keen small. Illinois Central, 42 n 41M dls., Fi le Railroad, 42 a ?>; Coiled mate - i s.MJ, th* paris Borana. P<ais, Dec. 13, lt|?2. The Bourse is steady. Rentes 70f. fiftc. THK L1TKBPOOI. t'OTTO* HkmXT. Lirrtneoei., I?ee. It, 1842 The Wrofcerr' Ofrew'ar reports the ?sles of cotton fir the VHekftt flfi.flt'O bales. The mnrket h<is been buoyant, anipVlces advanced )*d. a l(d., mostly on tho middling s:v l(/f?er The ^les to ?pei ulslois were S.OOO bales, sod those to exporters O.nOO bales The ?sies on Frldsy were fi.ooo Bate iocluitsg 4*00 lo speculators and s* porters, iha market closing quiet and steady at tbe advance noted The authorized quotatloan are ? Mr MtdAKnt Orleans 27 MX Mobile 3n 32 i, UpMfcds 36 22 * The stock in port is estimated at 264,000 bales,of wblfb 34,000 are American. BtVM COTTON NAUR. The sale* of cotton for the week foot up 13,000*aiee, the market ruling active and buoyant, with a d?'iniuid for ail descriptions at fuM previous prices. Stock in port bl ,000 bales. RTATK 07 THADB. ' ? , The advices from Manchester ere favorable. Prices are advancing, and holders demand still higher rates. The market closes quiet. BKKADSTI!FF8 MA**?T. Mes*m Richardson. Spcwa * Co., Gordon, Bruce A Co an<l Wukofleld. N/ish * Co. report ?Flour flat at 22b a 2Hs. for American. Wh?at stendy and unchauged at The* day.'s decline red Western, 8s 9d. a 9h. 4d : red Southern, 9s. ?d. a 0s. 10d.: wkite West.-rn, 10s. 3d. a lis.; white Southern, lis. a ICs Torn quiet, and 3d. a?d. lower: mixed, 28s. a 28*. 3d. PROVISIONS MARKKT. The s^me authorities report?Ucef inactive. Pork tend tag downwards. Bacon easier. Lard quiet but Steady. Tallow stil| declining, am) quoted at 42s. a 44a. PHdOL'OK MAHEKT. The SrcJrtrt Circular reports:?Ashes aetlve; pots, 33s. 6d ; pearls. .T2s. 0d. Rosin quiet at 26*. a 20* M. for common. Spirits turpentine very dull. Sngar quiet but stendy. Coffee?uo sales. Bice steady, l.inseed. tcmlinp downward1!. Linseed ol! inactive. Cod oil dull ana unchanged. Petroleum heavy and tending downward. LONDON MAKKKTP. Breadstuffli quiet and firmly. Iron Arm. Sugar has a declining tendency. Coffee steady. Tea steady, hut quiet. Kice inactive. Tallow dull. Spirits turpentine firmer at 110s Rosin dull, common 27s. Lind^ecd oil, upwards,quoted at :?8s. rtd. Spero oil iaactive. Petro leum oil downward, quoted at 2'2s. Proven k Todd report provisions quiet and?teady. Lard downwards. TBS LATEST MARKETS. Uvmrot l, Pec. 13?Evening. The sales of cotton to-day reached 12,000 bales, includ ing 7,000 to speculators and osporter*. The market la buoyant and tends upward, with au advance of Sid. on Surats. The breadstuff market Is dull, hut steady. The provision market is Inactive. Lonook, Dec. 18?Evening. Consols closed at 92}*' a 92 for money. The latest sales of American stocks are:?Erie Railway, 42)<, Illinois Central, 42. NEWS FROM THE SHENANDOAH VALLEY. Evacuation of Winchester by tfce Rebels. \ Great Destitution Among the People at "Winchester, tfc) *??? fc?. Baltimore, Dec. 20,1802. Colonel Keyes moved from Romney and tooK possession of Winchester on Tuesday morning, when the rebel pick ets left there took their departure. The rebel General Jones, with 2,500 men, bad occupied the place the week previous, but bad left,going towards Staunton. . Miller's forces were at Middletewn, intending to move on towards Winchester. Tbe Winchester Railroad has been entirely destroyed by tbe rebels, and the iron carried off by them. Great destitution eiists among the people at Winches ter. Tbe common necessaries of life are at famine prices, and hardly procurable at that. THE M'DOWELL COURT OF INQUIRY. CoBttnnatton of the CroicExamlaMtn of General Slgel. t Washihgtow, Dec. 28,1SC2. The thirtieth day's session of the McDowell court was held to-day. About twenty spectators' were present at its deliberations, amongst them the eccentric and cele brated Count Gurowski. The Count attracted marked attention, as mnch from bis personal attractions aa from the liberal manner in which he criticised the decisions of tho court in certain points. He appears to be an intimate, and, if one would be allowed to Judge from the winks and decided nods thrown out by him to the witness to day during the crosi examination, a confidential ad viser of Gen. Slgel. General Slgcl desired to make some remarks in his testimony on cross-examination by General McDowell on tho previous day 's session. He acknowledged the au* tbenticity of the record of the recorder, but desired to st&to that, in addition, as he had consulted his papers suico bis testimony yesterday, Tho Court would not allow this unless there were inac curacies in bis statements which, after consulting his papers, lie would de>?iro to correct. I The witness did sot know that ha had made any inaccu ; rat statement*, in .uiswer to a 'juestioti from Gefieral I McDowell, as to his (G neral McDowell's) provision for [ meeting General I.ougstreet and the strength of Ricketts' force, as indicated In the order of march, witness bald ? It is impossible for me to say what 1 knew four months ago. 1 do not know at all what was the strength of Ricketts' division. I hardly remember anything about It. I don t know whether M had lour brigades In it er not. Question.?Would you have considered, under the cir cumstances, that four brigades xtid twenty-four pieces of artillery and the cavalry, an aggregate of twelve thou sand men, sufficient force to hold Longstreet in check? Answer.?I would havoregsrded It as a sufficient provision if these forces were plaeod at the right peint and at the right time. Q?Do you or do you not know that Long?treet did oome through Hopewell Gap, about Are miles to the north of f noroughfare Gap, or do yen not know that he came through Choroughfare Gap* A.?I do not know exactly whether he came by Thoroughfare Gap or Hope well Gap. I think he came by Thoroughfare Gap. I think Hopewell Gap is three miles from Thoroughfare Gap? [Witness, in answer to a question of General McDowell, said that he had the impression, from a report of General Longtlreet himself, since read by him, that the skirmish which occurred between Thoroughfare Gap and Havmarket was aa insignificant affair in regard to the resistance made by General McDowell. He had no other knowledge but this about It. Q._Yen have staled your belief that General MeDowell did not do what he could under the cir?umstances to hinder Longstroet from Joining Jackson, and yon afterwards say you cannot answer the question as to what .was done to hinder it. How then do yon know that be did not do all that you un derstood should be doner A.?Because, ns I have no exact knowledge of what was done In general, and as my remarks were made In regard to the result. I knew that Gen. Longstreet was coming up on the 20th, or had come, and also knew that ho had co-operated with Jackson on the 80th of August. Q. You have stated you did not be!!ere that General McDowell had lelt a sufficient force at Thoroughfare Gap to prevent ihe enemy's troops from passing this d-Ole, easy to he defended. Yon h:ivo afterwards stated that you did not know wbnt General McDowell did to prevent Ijongstreet from comIng t lirough Thoroughfare Gap How then did yeu know that be bad not left a sufficient force* A. I stated so because It was my Impression that a serines fl,:ht would have tiken place there. As t heard .othing of such a fight, I supposed there was not a sutll' ie t forco ; there Q.-You have stated that your trc :.ps lost time and I becamo tired In marching and countermarching, to come I to nearly the same point in the oveniog which they left In ' the morning, in c implies** with the orders of iiem-ral i McDowell. Is it understood that lt\v?s in compliance i with his orders that this was done" A.?I understood that | it was in compliance with General MoDo-rell's orders : that my cores leit the point where It was formed at irnon '< in order of battle, aa I that this wa?a mihtake. Farther, i I say <h?t it was not by order of GeneruUMcDowoll, but ! by order of General 1'ope, that I marched. Geu. McDowell hero entered a protest against the wit ness being allowed to answer categorical <"-jestions in this explanatory way on crosi-examiuatiou aa follows:?It isobjectod wbytiaemi McDowell tint the witness be now allowed to explain the movements made, or to qua lify his evidence in chief, or Sn make remarks on the same. at least until after he shall have director, specifically aud expressly answered the cross interrogations proponn ed to Ulm Theconrtwas cleared, when the protest of Gen. Mo Dowell was overrulnd. By direction of the court, the Recorder asked the fol lowing quuetun ot the witness ?Was the countermarch made in going to or retiming from Msn.nssa* Junction by Gen. McDowell's orders? If not, you will state by whose orders, in connection with Gen. McDowell, it was ?ade. A.?It was not made i?y Gen. McDowell's orders alone. I , marched by Gen Mcl>owelVe orders towards Mana*sas, and by orders of Gen. Pope from near Manassas to New Market , The court then adjourned until to morrow. - -A Prlae Fight?New York Versus Boston? Mew York the Winner, Ate. Boston, Dec. 2d, 1892. A prlre fleht took place yesterday afternoon in the presence of about one hundred " roughs," between Billy Donnelly, of New. York, and " Young Shiner," of Boston. The ?' heroes" of the occasion were both of the " light weight" order After sixteen rounds had been fnught, Billy Dnsnelly wns dcclsrcd tho victor. ? Nsw Ysas ai?i> TnsOm.onro. I'soW*--The colored peo ple in various cities and to\%ns are making preparations for s grand Juhnce on the 1*1 of January, In honor of tho premulgwtMta of the "naocmetloe proclamaifee. ASTOUNDING ARMY FRAUDS, The Official Investigations in This City. High Government Officers Implicated. HOW THE FRAUDS ARE COMMITTED. ExtraordinaryOperations ot New York, Brokers. O Tbe Colonel e! ? fifty Regiment Figuring at a Wholesale Robbft. Forty Forgeries on the Government in Two Months. Seven Hnndred Thousand Dollars Robbed in One Single Department, as*. ac., ?? a#. It is not generally known that a most important Inquiry bag been progressing in this city for the lust '.wo months, with the object ?f investigating certain serious charges or frauds on the United 8tates government in the department of rations and lodgings for our volnnteors. Thus far tbe inquiries have hud a most salutary result in laying bare a vile and gigantic system of robbery and peculation. A mass of most important evidence has been taken, which it Is hoped will bring the principal uilenders to well merited punishment for preying upon the vitals of the country in the most shameless aud disgraceful man ner in this her day of greatest need and peri). - The oflenders in this case are of two classes?civil and military. Tbo former are, of course, amenable to military law, and will, as soon as tbe proper time arrives, bo tried by courts martial, and be punished by imprisonment, with the ball and cbain to tiielf legs, or in any other way that may be deemed proper. All civilians will be tried by tbe civ'! tribunals, and be dealt with as the law directs and their abominable frauds sq Justly merit. Colonel H. S. Olcott is the commissioner appointed by tbe War Department to make the accessary invrntixa tlons. This gentleman has been employed since the 1st of November tost in the prosecution of his important du ties. He has employed a competent short hand writer to act as secretary, and two interpretc s to aid in tbe deve lopment of the voluminous evidence, as most of tbe par ties concerned as witnesses, *c.,?re-Germ ans, who do not speak the English language, 'lhe Investigations have been conducted privately for the be^t of reasons, and, us has been seen, with great success. " When tbe present rebellion Woke out Oongms was not in session, and therefore no appropriation was pro vided for defraying the expenses of the enrolment and sustenance of our new volunteer regiments. Then? neccssary expenses were paid either by the friends ?f the officers, by voluntary subscriptions raised among citizens, or by tbe Union Defence Committee. But some time in the month of Augnst.Congress being then in sec tion, an appropriation of twenty millions wnn made for recruiting, organizing and drilling volunteers. Under the provisions of an act of Congress the Adjutant General's Department was made the custodian 01 ihe funds, and the mustering officers were constituted the parties for disbursing the money. Col. D. B Sackott, InspectorCene ral or the United buuee Army, was at that Uuie on duty here as mustering officer, being assisted in the discharge of bis duties by several other army officers. During Ihe im mense rush of volunteers which Followed the President's first call for troops these officers were overwhelmed with business; but, according to tbe act of Congress, all the disbuisements had to be made from these offices. Colonel Sackett found it necessary to have an enlarged and concentrated department, and in conseqncncc hired a suitable building in White street, where he removed his entire business and established a general disbursing office. Tbo first appropriation which be received from ttifc government was $5,000, which was exhausted In three or four days; for as soon as It became known tbat the government was prepared to pay tbe ex penses of recruiting regiments,* the special con tractors and all persons having claims upon the govern ment came down upon the office like an avalanche.' Tbe Cononel got no more money for three or four weeks, but in the Interim tbe place was continually being Invaded by creditors, and the bills for alleged expenses were accu" mutating by scores in his office. Everybody was clamor ous for the immediate payment of their bills. Finally, Colonel Sackett got another efceck for $100,000. This be soon paid out, aad late in the month of November be got another order for a similar amount. Tbe bills for tbe subsistence sad lodging of recruit* comprise a specific statement of the number of lodgings furnished and tbe quantity of rations supplied in a separate account, forming a general exhibit ef the whole amount of rations and 'edgings. This has to be, or rather should be, oertifled by tbe officer wbo recruits tbe men. Tbe bill should be signed by tlie special contractor and then endorsed by tbe colonel commanding tbe regiment. But in tbe hurry and contusion which prevailed at tbe time of opening tbe office tbe name of the colonel commanding was some times emitted. Colonel Sackett, on assuming the duties of bit office addressed tbe Comptroller of tha War Department, asking bow far tbe mere certificate* of volunteer officers fbould ba taken, and whether be sbould take affidavits from them or not, because It waa notorious that there were many greedy men wfco bad managed te creep into tbe anay under various specious pretences. Up te this time a general idea bad very properly prevailed that an army officer waa a straightforward, Just and bonorai>lv man. But the volunteers were to show bow tbe rule worked with them. Colonel Sackett got no respenee to bis communication, and was therefore compelled to act by the promptings or bis own judgment, and to do as well as circumstances would allew him. Now tbere are two kind* of contractors. 1 be regular contractor is one who passes In-hie bids iu reply to the advertisements published by government. In these bids he ?tiers to supply ration* and lodgings *o soldiers for any sum per bead that tbe go vernment may agree to. These contractors are com pellet by law to give bends to tbe government for the proper performance of their contracts. The special contractor is the other class. Re is generally the keeper of a lager bier saloon or small boarding bouse in tbe city. Perhaps be has boarded soma neven or elgl.t men after tbelr enlistment, until they are carried Into camp, when they begin to be subsisted by the Quartermaster's De partment. An far as the general contractor Is concerned, there 4s but little chance or his committing frauds, except It be by and with tbe cauntvance of the gu\omft>ent officers. But tbls is not the case with tbe special con. tractors, as may be seen by tbe facts developed during tbls Investigation. When tbe tremendous proseuro already alluded to wits brought to bear on the disbursing office, and there was no money ready at haud to pay, these small contractors would be always crowding tbe office and seeking tor the liquidation of tbelr accounts. They, therefore, were sub jected to great lose of time and money, and eventually bad to negotiate with the brokers of tbe city, who bod established offipe* at convenient place*. These broker, began in i small way, sharing bills against tbe govern ment at ten. fifteen and seventy-live per cent, as ibey could agree with tbe contractors holrtv Re tag men of some capital, the#c|brol(ers eo?^< afar" t" wait until the disbursing officer received a< h*rk fron ? < ? m>rlon, when tbev would present all the bills the> bad shaved* and receive tbe c-wh tor th^in. The disbars.n'g officer, in order to protect tbe govern ment as far as possible from fraud and impo tltlon, not only required an affidavit frrm the special contractor, setting forth the correctness of bis bill* but also employed detectives to find that the n.'n charged for Were actually boarded and BufcsiitNl, If all tbe*c proceedings had Iroen comjcted in a straightforward maimer, and If all the detective* tnpl?r?d were honest ?nd jQ*t, the to would now be no cause for complaint of troeble. But it turned oat otherwise. Lieut. Cej Nlsbolf. of the regular amy, relieved Co). Sackett on tba 11th of Decernl>er ae government disbursing officer During the latter pari of hi* tern of office this hrokcrugo twiners *u at its height, and it went on getting more extensive nntil ntid?ammer, when Capt. F. 8- Iarned was placed in charge of the office. The broken about this time w?r? doing an immense business and had bureau* organised throughout the city to get up all the fair bills they could obtain, and to make put falee ones besides. Not satisfied with the enormous profits '.hey were making by shaving bills, they-would !?? the regular blanks from the disbursing office, and* by bribery and other corrupt means, endeavor to get hold of -omo ignofact German understanding scarcely anything of English. and for a small gratuity )n?cehim to sigu <>'><'of tberfo false bills. Tlie plan was to find nut some small lager bier saloon keeper who had boardod a few volunteers. Tliey would tli ngoto this man and ask him if he had uot boarded some recruits. He would naturally answer in the affirmative. They would then offer to bay his ciaim, and. aftor some higgling, eothe to an agreement. They would then make ?0t a falso bill for a largo amount and obfttn tho signa ture uf the Governor, who no doubt supposed that bo was uellng quite fairly. If necessary, they never hesi tated to forge the signature of tho recruiting olleors, colonel-! of regiments, Ac. When the forged bill was got up according to the form prescribed by law it was pre Bej^cd and the money received. This outrageous condition of things has had no limit, and the more the brokers grew rich on dishonesty tho moie active wore they in their operations. Within the l>utt two months not less than forty forgeries liave b'-en discovered. Some of thd recruiting officers are among the rartie - implicated, and in other eases the colonels of regiu^ntH are themselves deep in the dishonest mire. A third form uf ooi'umitiing ilicae forgeries and frauds upen tho government 1b in this wise:?The rontractor finds it necssary to liave money, and he accordingly g. .cs to the broker to shave his bill. Tlio latter sees his chance at once, and Fays that the bill is not made out in a correct form. Hetnen tears it up, and clVcrs the con tractor, It may bo, $50 for bis claim, saying (but ho will givo no more for it, and that the conlr.tc'or might go without money if he would not accept tho offer. The un .fortunate contractor finds himself in a serious difficulty. He hn<3 already been at the disbursing office fifteen or twenty times in search of his money without being able to obtain it, and his necessities press so hard ui>oii him mat he finds it absolutely ntxessary t0 have Ei'iuc cash. He is, in fact, in the hands of the broker, and is forced to accopt bis offer. The regular forms are then presented to him for bis signature, and, this being done, the broker goes to work and makes out a fraudulent bill against the government, (Only a portion of which ho is properly entitled to. It mat he that the original bill 's for $100 or |200. Tho broker makes it out for $00 or (400. in signing these papers tbe contractor is not al' lowed to see anything but tbe place where Ms naino is to be atlixed, and this be does blindly, or in some cases by collusion, at the direction of tbe broker. Again, a man who has been a recruiting officer goes to the keeper of a lager bier saloon where he has been paying small sums for the subsistence of somo few- reemtys. He says to the owner:?"! liave had some men qsirterod at your house for whom 1 have paid out of my own pocket. 1 have not yet received payment from tbe government. It is necessary for me to have your s.gnature to got my money." The lager bier seller looks surprised. Tbe confidence man produces the regu lar forms of blank bills, and obtains tbe signature of the German to what be represents, as a bill for twenty live dollars, but which, when it Is presented for payment ft the disbursing office, has swelled to tbe extraordinary oxteni of fifteen hundred dollars. A day or two after getting the German's signature the recruiting eflicor re turns and say a It Is necessary to go with him before a notary and testify to the authenticity of his signature. Tho notary, who Is also in the*plot, aska no ques tions, but proceeds to business. The German signs the paper before b!n?, and, as a witness, tbe notary countersign^ and affixes hiB notarial seal to docu ments which are open frauds on the government from one end to the other. This shows tbe complicity uf some of the notaries employed, who sign such documents without afeking any questions or administering tbe oath required Dy law. (we of the ciiscR brought to t.he<noilce of tho Commis sioner developed the i'aet that tho I'uion Defence Com* in it tee were puying forty coats per ration to certain con tractors. The return* bad to be accompanied by regular vouchers, and tickets were issued to all tire recruiting officers fur subsistence of their recruits. It was round, however, that in many cases the Bpecia] contractor h?a had to pay back live cants per ration to the colonel of a re giment, and toihequartermaster ten percent on his gross receipt.-,so ?? to nroure th<*ir fttvorand oojoy the continu' ante of his contract. Thus, if tVioro liad been .such a thing up honest dealing with the government, the recruits brought into the flekd could have been provided for in this respoct at about one-half the onst. There are cues explored which show that the orderly sergeants have sometimes been directed to return more men than were actually subsisted. The Commissioner began his investigation by going into the charges made against the brokers, and, after they had, for the most part, been disposed of, the Secretary of War placed in bis hands a bill whieb 4>ad been collected ly the colonel of a New York regiment, and to the correctness 01 which be had made his affidavit. Mr. Oicott has found tha1 that bill waa. accompanied by a lumber of sub-vouchers for boarding, lodging, Ac., for recruits. On close examina tion only two real names were found attached to these documents, and these two names were forgeries; the rest were fictitious namee of persona having no kbown exlsteuoe. He found that lAe colonel had perjured him self aad swindled the Unton Defence Committee, Indi vidual citizens of New York, the general government, and every one of bis officers and soldiers; that he had turned officers out of their commands on frivolous pretests, and sold their commissions to other*. In short, be bad been engaged in a course of swindling of the lowest and .jneanest*kird, such as one would scarcely suppose that a third class pickpocket would he guilty of. It Is pro bnble that this inan has been arrested by this time. It is very probable that the Commissioner will take up the case* of several other regiments recruited in this city, conct rinuk v likvi the government is in iKtesession of valuable information. The developments in the c*i>e or ih?. colonel mentioned above *iil be rich mid iacy, although it is not considered wise to publish tbetn just now. 7his officer will be proved to have been engaged in a long career of I'r.n id anil all kinds of crime, and yet he succeeded in imposing up?u a large number of our most prominent cittsens. Within d week after the commencement of the present investigation many false bills which It is known were 1 ready lor presentation were withdrawn. One of these was for 16,000. Among the various successful fraud j i here was one sure t hero a man obtained $1,175 for a bill t Of |60. In the roblierles of all Kinds in the department of lodg- ( jng and fubsisten< e for recruits, by forgeries, excessive , charges, Ac., on the disbursing office, the government has been defrauded to the exteut of $700,000. This, it must j be remembered, is only in a single department. The same | system er gross fcaud is going on all through tho United ?titates in almost every department of the public service. Out West it is said to be far worse than it is here asd it I safo to say. from tfan result of this inquiry, that there IS scarcely a bill presented to the government that has not passed ^rough some fraudulent channel. The investigations, as we have said, will be re. gularly continued In this city, sad there Is scirsety a doubt ntertaioed.that high gorernmont officials wM be implicated, although the evidence on this point is net yet ready to be lalcl before the public. The press has hitherto been silent concerning theee frauds and the investigation*which have been going on in this cky, so that n* undue publicity should hsglven to facts whleh would injure the govarntasat onus* and la peds the course of justice. The public has, therefore, Vnown nothing of these ceiossal frauds. It now appear, t.iat many of the arrests made in this eity sosse months ago without apparent cause, end which were attributed to political causes and be rise of a military despotism, had their origin In the frauds now being brought t to the light of day. The government, Instead of Infringing on popular rights snd personal liberty, did not arrest ope 'entb of tbe men who ought to have been ar rested for fraud sod peculation; and. during tbe agt tat oc raoeed by the hoe aad cry agaitat the system of arbitrary arrests, all tb'se who were arrested w??r? leased and ?et at ^iberty. The whol# machinery of the government l?, however. In motion now, and the civil and military trlhunale ef the country will hare work enough to dispose of the ac cumulated mass of fraud and robbery to be brought be fore tbem. The peculator! who have been robbing the government apd the army without the slightest com. puuetiss, filling their coffers and fattening on the woe* ; of the country, will soon be brought to a reckoning for ' their outrageous and shamefsl crime*, and when too law they will find that their game was a mow dangercue ene to play, and that, though The mills of the (rods grind slowly, They grind exceedingly fine. NEWS FROM EASTERN VIRGINIA. The Election for Members of CengMis-^ Sharp Skirmish with the Rebels, Ac. Washington, Deo. 21,1862 A letter from Suffolk, Virginia, dated the 23il instant, states that the election i'or members of <ougretn took place the day before, agreeably to the proclamation of : Major General T>ix. i Contrary to the law b of Virginia, ballots were cast in stead of voting L-irn voce. In order to give the people or Smithfleld an opportunity to show their attachment to the Union two ballot boxes were sent down to tb*>m, in charge of Lieutenant Colonel Uuderdonk, commanding two hundred of the first Now York Mounted Rifles. Suspectiug^hnt the rebels would be anxious to visit the po'.ls, Colonel Onderdouk sent the boxes direct to Smith "field, io charge of a ?inall squad. and proceeded with the remainder of bis command to Windsor. learning that the rebels bad loft the place but a short time before, Colonel Onderdonk proceeded cautiously to wards iho Isle of Wight, and when about three miles out came up with them. He sent his compliments in the elmjie of shell from his howitzers, and they responded handsomely with six-pounders. A short skirmish revealed one regiment of rebel in fantiy, with two pieces of artillery and some cavalry. Colonel onderdonk then, thinking It would be safer to look up voters nearer Suffolk, slowly retired. The rebels attemptod to surround him, ami at one time wore only one hundred aud fifty yurds in his reir, there upon Colonel Onderdonk suddenly wheeled his command about and Ured a volley, which emptied twenty of the robel saddles in quick bane. The skirmishing continued for six miles. Two prisoners and one horse wore taken from riib rebels. Noi.e of our men were lost or injured. , It is thought it will bo a long time before the election returns Stome in from .Smithllokl. Nansemood 'polled thirty-nine vot^s, twenty six of which wero for Mr Cooper, twelve for Mr. McCloud and one scattering. INTERESTING FROM FORTRESS MONROE. Another Skirmish With tfe Rebel* on the Blaekwaur? Success of the Union Troupe?News from Worth Carolina, die. Korhubw Monrob, Dec. 25,1802. Lieutenant Colonel Stietsell, of the Eleventh Pennsyl vania cavalry (Colonel Spear's dashing regiment), had a warm engagement with the enemy at Joiner's bridge, on the Blackwater, yesterday, four miles rfbove Franklin, llediovothe enemy's pickets on this skle qf the river, capturing four of their pickets, one cavalryman and horse, and three .infantry soldiers and tboir arms. Colonel Stietsell's advance, with their carbkilers. under the gallant Lieutenant John 8. Hopes, first engaged the enemy at short range. Finally, discovering the euemy In superior number* above and bnlow us on tbe river, wttb our very small force of four small squadronsffn peril of being Hanked, Cclonel Stietsell very wisely concluded to retire, which he did in safety. The following is from the Newborn (X. C.) Prograt of December 18:? Tbe funeral of col. Gray, of the Ninety-sixth Now York regiment, was attended on Wednesday afternoon, the Klgbth Massachusetts regiment and the Third New York artillery doing escort duty. Col. Gray was killed at tbe battle of Kinston. He had been in the seven days, battle beforo Richmond. Tlio Free Labor Association of Craven county is rapidly gaining strength. K. W. Carpenter, of Newberu city, is President. The rree labor nomination for Congress has been ten dered to Charles Henry Foster, who declines, having already applied to the authorities for permission to raise a second ieminent of North Carolina Union volunteers. The schooner Alice D. Webb, released to her owners by order of Gov. Stanly, has been retakeu by special autho. rlty from the Navy beimrtment. THE PORTER COURT MARTIAL Testimony of Major General Moreil, U??ten??t Colonel Locke and Captaia Martin. Wasiujkjtoji, Dec. 'M, 1862 Tbe Cout; Man.al In the cuu of Kits John rorter re sumed iti sessions this morning. Lieutenant Colonel Locke, of General Porter'* staff, and bis Assistant Adjutant General, was the drat witness ex amined He knew of the orders received by General Porter from General Tope preceding the march commenced on the murninf of the 28th of August for BrUtow Station. On that morning reveille was between|oae and two A. If. It was intensely dark, and tbe roads were impassible for Infantry until cleared of obstructions, on the march fto Gainesville he beard General McDowell Mil General Porter that he was too far out with his men, as that wait no place to have a fight. The two bad a private conversation for some minutes, and then they rode off on horseback. Afterwards General Porter recalled tbe troops sent In advance. There was no retreat. Uis corps reissu ed till next morning at daylight. Tbe batteries were in place. lien. Porter made every poss.ble exertion to clear t he road to Bristow sut ion, to enable hi* corps to march, on theitftb and 28th of August. His stallhps in ted him, as also a body of cavalry, a detachment ol which was aasignod to him at (Mlett's station. On the evening of tbe ,29th Captain I'ope brought an order from General Pope to General Porter. This was an order to attack the eneuiy at ence. ueneral Porter instructed m* to go immedi ately to General llorcll. and have his troop* ad vamcd forthwith, and lie would follow alter him CapUin Pope delivered his order about sundowti. Witness was atlachod to General Porter's ^ad. and was with bitn dm ins tbo time be was under General Pope. About half-past three o'clock next morning a second order caine I rom General I'ope to march at once t<> the tMltle held. An officer was .-cut directly to General ftorell, directing liim to call tils pickets in add prepare tor instant march, General tykes' division was also pat under arms General Porter showed no lodupnettton to sid General Pope, but acted wittely, to tbe tniiest extent of his ability. In co-operating with Genera! Mi DoweJi's C^umu there were dense and continuous roads to be marched through I be troupe began to movo before day light on the morning of the 38th to Bristow 8 tat "on Captain Martin, of Mattery C, Massachusetts artillery, corroborated tbe tostiWMiy of Lieutenant Colonel Locke as to tbe darknens of the night ? ben the march lor llrlm tow Station wan commenced. I'c also heard t.eneral I'ope tell General Porter, on the 29tb of August, when they were on the way to Gainesville, that he wus too close to the enemy, and that that was no place to tight. General I'orter presented, through bis counsel, a writ ten protest against the pre, it ton of certain evidence on the |>art ol tbe government, which he had deemed iDad mi?*able; and the Court was cleared a few im>meuts to deliberate thereon Maior General MorWI testified that at tbe time tbe al leged otibnces charged again*t General Porter were cm Kitted, ho was in command et the rlrst division is Ms a>r|*. He 'vaa preset* when an wder war rectived by General Porter Irom General Pope, on the evening of the 27th of August, this order was to march at one o'clock next morning. Gen. 8ykes and (Jen. Buttnrlield were present when Ike order came, ar very soon afterwards. He said that, considering tbe wearie I con dition of our troops, tbe darkness of tbe i.lcbt and the obstructions of tbe road, no (tetter progress could he made by starting al this hour than at daylight. G?.,ural porteraatd ? 'Wo will start at three o clock," and or dered that the commands be got In readiness. It was very dark and threatened rain, and it did ratu berore mowing. Tbe troops were on tbe movo 4>y three V M. or slurtly after. He did not know at wbat hour his (More I's) division was moved. If we had moved at ene A. M. the meu would hate been broken Of thoir whole night'< sleep This was what lie and the other Ulcers wlal?ed to avoid In (be opening of tbe march there was a good deal of cyfllculiy In makvig profresa, on aoomtnt ef the darkness and obstructions m tbe road. Gen. Sykes' division led that morning tbe uieo were advanced ns rapidly as paaslhle. The Court here a#iarnM to eleven A. M. to merrowi, when the testimony ef Gen Morell-will be resumed On Monday Gen. MoCicllan and Gen. Birnsl.le are to be ex amlued. Pmsi** n? ViSimu.it.-?The Nashville r'nion ?sys (bat nearly one thousand lamilles, belonging lo ?eidlers no* In the rebel service, or who bave been killed or died In that service, are It that city without food, clothing or wood and ate dally nutkltif piteous appeals ?0 tbe fede rsl author it let for rel.ef A. D.1862. Twelve Months Record of the Rebellion. Achievements of Oar Improvised Army and Navy. One Tear's Index to the New York Herald. Tlae Ceptnre of Porta Hsarjr, Doaelto* and Inland No. 10? Naval Eaf?Crn<nt at Mcmphli?Th? Vaklnf of lew Or. leans~-Th? Monitor and th? Jflarrl mar-Battles of Pltt?barg Landtafi Pea Ridge, Mill Hprlaff, Roaaoke Island, Corinth, Yorktowa, the SieRc of Rlrkmond, tit* Ac tions at South IHoaataln, Anlcttam, Crawford Prai rie and frtMltrlckibarg, Klaaton and CJoldshoro, k, &?., Ac. orEIUTIONSWN JANUARY AND FEBRUARY, Wo begin to-day the publication of oar chronoKr gy 01 the events of ls?J2. Its great length prevents the entire publication on one day. We shall con tinue to give one or two months per day till the whole chrouology in published. It will form, when complete, an index to the New Yobk Herald for the past year, and be of great value to the reader and historian, and should be carefully preserved for re ference. Wednesday, January 1, 1109. Tno ilawn of tbo now yoar nave a distinct view of lit* gigantic proportions of tbe rcbollioti, and showed the peo pie ol? the loyal .States pretty plainly that a large decree of patien<'0 must l>o exercised and novoro labor performed be fore it could be put down. A battle took placo on Port Royal Island, South Giro ina, between General Stevens' brigade and a rebel foroe, hi which tbo Union troops were signally victorious. A nnmi>er of rebel batteries wore destroyed, and tbe rebels driven from the Island. Our loss was one killed and nine wounded. Enemy's loss not known, although lhey admit liavtng six killed und twelve wouuded. . Fort Pickens opened tire on the rebel batteries at Fan sacola, which was responded to. Tbe firing continued neiir!y ail day. A breach was ma<le la Port Barancas, and tbe town of Warrenton was set oo Ore, and the esn* ttagration continued all night. Only one man was injured jn Port Pickens. Vd.?James M. Mason, John Slidell, George IMstis and James K. Mac,far land, the rebel commissioners and their clerks, who wore taken frura on board the British steamer Trent,by Captalu Wilkes, of tho United States steam fri gate .San Jacinto, left Fort Warren, In Boston harbor, where they had been detained as prisoners, and emlMftaod od board the Kugliifti gunboat Rinaldo, at Provincetown, Mass., and satlod for Kncland. A fijjht occurred between the Union gunbiata Yankee and Ajiaeostia, of tbe Potomac flotilla, and the rebel bat fry at Cockpit Point. The mlsslled irons tbe rifled guu of the battery struck the Yaukoe, doing but small damage. Several of tbe projectiles from tho gunboats tookeffect in the midst of tho battery. 3d.?Two hundred and thirty-sine Union prisoners, who tbul been captured at Richmond, arrived at Fortress mouths, Having D< on uxr.nan^cu. Tbe t'niou troops look possession of Big Tlsthel, Vl,, thn reb?;l? having evacuated tnc place. 4 th.?.-*veu hundred and fifty Union troops ware Mat by General Hilroy to attack Huttoosvlllo, In Wsstsm Virginia, which place wa.4 occnpied by the rebels as a <tei-ot for supplies* Ad engagement ensued, and Uw enemy was driven from the place with the loss of eight killed and wounded. The Unionists did not lose ft man. About twenty-livft thousand dollars wortb ef rebel army stores were destroyed. A large forco of rebels attacked the Fifth Connecticut regiment, which was guarding the railroad In Virglnia,ap posite Hancock, Md. The Cnionista were farced to rsUr* acroes the Potomac. Tbe rebels then tore up the railroad track and destroyed tbe tdagraph wires. Tbe rebel General Jaok?ob7 with a fall flsroa, appeared at Batb, Va., where tbore were but about one thousand Union troops. An attack was made by lbs whole rabn* militia, fifteen thousand strong, who ware twloa rapaaad by our volunteers. SubsequentlyGeneral Jackson's rega lars nvtde an attack In front, at Uia same Mmo ixaasMg a flank movement, when our troops fell bask en Haaaasfe. 9 th.?Tho rebels from the opposite Bids of the N? mac river shelled tbe village of Hancock, Md., and injur** * number ef buildings. They war* driven off 1*j tM Union artillery. No loss of men on our slds. ?tb ? a party of four hundred rebels wars sltasts d by a detachment of tbe Thirty second Ohio nlasal. a? out by General Milroy, in Ticker county, Va., and niaiad Tbe rebels loat four killed and a large number nnaa?sit A rebel enoampm*nt of one thousud man, under a man named Hoindexter, in Howard county, Missouri, waawl* tacked by Ova hundred Union cavalry, under oasnssl of Major Hubbard, and completely routed. lb* Uaieo kiss was three killed and tan wounded, and the rebeia M seven killed, twenty-five wounded and Wsss prisma. Tth.?Oeoeral Garfield, with twa ragtmmts nad Ihrd* hundred cavalry, entered Faintvllle, Kentucky. Ik* rebels, under Humphrey Marshall, fi*4 an the afpraaeb of the Union forces. General Garfield's cavalry poraaai and engaged a vanguard of rebel cavalry, killing thrat, wounding eight or tea. and taking fifteen prlaeasr*. A* I'iiIon loss was two killed and one wounded. A considerable force of rebels were surprised and runt ed a.ar Kotaney, Va , by a Union ferae under Colonel Dunning. Tbe rebel loss was not known, but sight den* bodi?e were found among tbe rocks. TUu legislature of the 8tate of New Tork Bet and or ganized 8th?four huudred and fifty Union troops altaifc ed tbe notorious rebel Polndoxter, with frost one Ibnusnail to one th'msand three hundred men, on Silver creak, Howard county, Missouri, totally routing them, wtth a loss of cevert lei't on tbe Held and m tny more carried off, arid from fifty to xeveuty five wounded and thirty pri soners, Our loss wu four. Tho rebel camp was destroy ed and a large number of hoi sea taken. A detachment of Union f'irces, under CoL Dunning, overhauled the rebels, two thousnnd strong, at Bos'a Gap. Va., aud completely routed them, kllMng Moan, t.ikmg twenty prisoners, bestdda capturing two pleosa of cannon, all their camp equipage and several wagons. Itu I'rovosi Marshal General of SI. Louie tamed aa order requiring all publisher* of newspapera in theStnta of Missouri, St. Louis city papers cwepted, todkrnish him a copy of each issye for fnspeciioa, and failure with which order rendered tbe paper liable to suppremloo. Oth ?A slight skirmish took place near Poliiek run, V%. After the first Are (be rebels rea off, with n loss ef twa kdled and <a.s woundod. Tbe Union loss was one killed. lO'h ?General Garfield, with hie main foroe, having left Pamtville, Ky., in pursuit of thn rebels, nader avir iMiul of Humphrey Marsliall, twine up to him at the fork* Of Middle ireek, ne*r CiMtoiiburg, Ky. Tbe rebel force was two thousand five hundred, while the Uatonlsta werft three thousand t*..oog. An engagement took place, and the rebels were routed, with the loth of thirty dr lortf kulod, s large monger w m ruled and tweoi/.flve prisoners. The Unim I n was two killed and twenty-five wounded. Tt>? Union troopa evacuated Roiuney, Va. Waldo H Johnson and Tru?t?n I oik, bulb of Miaso<iri| were expelled from tbe flatted since Senate for treason. 11th ?\a expedition called tbe Oemside expedition^ resitting of one hundred and twenty five vessels,an