Headquarters, Middle Department,
8th Army Corps.
Baltimore, June 29, 1864.

Col. Woolley,
Provost Marshal.

Colonel.—I have the honor to report that Capt. Wm. Bailey returned to this city this morning bringing three prisoners, and their skiff. They were first seen near James Point, and afterwards were taken on board the schooner "Thos. H. Northern," Capt. Wells; from which schooner Bailey took them along with Capt. Wells, and brought them to this office. I had a conversation with each one separately and then confined them.

George Hull stated that he was in the 9th Virginia Cavalry, from which he deserted some three months since; that he has been in the Confederacy since 1862; that he ran the blockade into Virginia on the schooner "Sarah Elizabeth" from Philadelphia, loaded with an assorted cargo, and landed in the Rappahannock river; that he did not know he was going to run the blockade when he started. A man named Edwards, commanded the schooner.

Nicholas McKee states that he was a member of the Home Guards in King and Queen County, Virginia. He went into the Confederacy by the same vessel and at the same time with Hull, but did not know she was to run the blockade when she started. Neither Hull or McKee know who loaded the schooner; both deny all knowledge of their destination when they left Philadelphia.

Samuel Lewis was a member of the 9th Cavalry, Virginia. He states that he ran the blockade about June or July, 1863. He sailed from New York on a sloop with fifteen or twenty barrels of whiskey on board. They anchored under Ragged Point, Virginia, on the Potomac river, where they unloaded the whiskey. For some reason the men on the sloop got frightened and left him on the beach. He does not know the name of the sloop nor the name of the Captain, nor any person on board, and he, like the other two, did not know that the vessel intended to run the blockade.It seems strange that none of them knew their destination when they shipped, and it also seems strange that after sailing from New York to the Potomac river, Wells had not learned the name of the vessel which he was on, or the names of any of his companions. He states also that he was the man sent ashore in Virginia, to do the business, but says he had to do it as it was orders from his Captain.

I have sent two detectives to see the schooner on which they were found, and to examine the cargo as it is discharged.

I am, Colonel,
Very respy. your obdt. servt.,
H.B. Smith,
Lt. & Chief.

Baltimore, June 30, 1864.

Mr. Plyle.

Sir.—I expect to go to Norfolk or Richmond to-day. I send my partner, Mr. Shaffer, who will hand you this, to talk with you about purchasing your bonds. He will answer as well as I in the matter.

I will be back about July 10th.

Yours respy.,
Sinclair.

To Col. Plyle,
Franklin House.