ompany. Fortunate man!

MARCH 17TH.--On Saturday, the enemy's lower Mississippi fleet attacked
our batteries at Port Hudson. The result reported is that only one of
their gun-boats got past, and that in a damaged condition. The frigate
Mississippi, one of the best war steamers of the United States, was
burned, and the rest retired down the river, badly repulsed. We
sustained no loss.

To-day, the Secretary of War sent in a paper indorsing Judge Meredith's
opinion in regard to foreigners who have accepted service in our
country, viz., that they are liable to conscription. This is in the
teeth of the decision of the Assistant Secretary, Judge Campbell, Col.
Lay's father-in-law, and upon which the bureau has been acting, although
Gen. Rains, the Superintendent, permitted it with reluctance, upon the
assurance of Col. L. that such was the will of the department. This
business may produce an explosion.

I walked with Gen. Rains this afternoon in Capitol Square. He is annoyed
at the action of Col. Lay in following the instructions of the Assistant
Secretary of War in regard to foreigners. The decision had not the
sanction of the Secretary of War, Mr. Seddon. He thinks _several
thousand_ men may have been permitted to escape military service by it.
He intended to lay Judge Campbell's decision before the President, but
it disappeared very mysteriously from his desk. And to-day it reappeared
just as mysteriously. And, simultaneously, and quite as mysteriously, a
paper appeared, signed by Mr. Seddon, Secretary of War, suggesting that
the bureau act in conformity with Judge Meredith's opinion, directly in
the teeth of Mr. Assistant Secretary Campbell's decision! And it was
dated March 13th, full four days before. What delayed it, and who
brought it, no one seemed to know. Col. Lay suggested that it be sent
back, with an indorsement that the bureau had been already acting under
the decision of Judge Campbell (just the reverse of the opinion),
Assistant Secretary of War, "by order of the Secretary of War."

To this Gen. R. demurred, and said the bureau would conform its action
to Mr. Seddon's suggestions; and he charged a clerk to preserve _that_
paper. Col. L. grumbled awfully at Mr. Seddon's off-hand decision,
without mature reflection.

Gen. Stewart (of Maryland) was at the office a short time before, and
advocated Mr. Seddon's views; for he knew how many Marylanders would be
embraced in the decision, as well as other foreig