Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1864-09-03

LATEST WAR NEWS
FROM GEN. GRANTS ARMY.
BUTLER'S CANAL PROGRESSING.
THE SUCCESS AT MOBILE.
Three Forts and Over 100 Can
non Captured.
From the Shenandoah Valley.
AVEssiE.L AT WORK
He Drives the Rebels from Mar
tinsburg.
DC. Gc.. DC DC. sc.
From New York

NEW YoRK. September 2-Tbe Herald's cor
respondent with the Army Of tue Potomac sends
the following:
The canal at Dutch Gap will soOn be in readi-
ness for use.
The Is. New York mounted rifles are re-enlist-
ing for three years more
mysterious looking. and TO all appearances
a most formidable craft has been discovered IL
ing in one of the creeks emptying into James
river
She appears to be waiting for some of the
monitors to pass up the James river, when she
will run out and cut of their retreat
The rebels are erecting batteries to command
our position at Dutch Gap.
The rank and file Of the rebel army being gen
orally under the impression that if they desert
they will be placed in the front ranks. General
Grant has issued order that those who volun
taIily come within our lines. shall have trans
portaton to their homes If within our lines,
to any part north they may choose. This order
will be circulated in the enemy's camp.
The Heralds Mobile correspondent says:
On the morning of the 23d Capt TAYLOR,
bearing a white flag, accompanied by 80 men,
marched out of Fort Morgan, carving small
sail boat, with the intention of going TO the flag
ship, three or four miles distant. with a note
from General Page. proposing to surrender. A
check was put upon this by General Bailey, who
said the army and navy were one, and that. as
his artillery commanded Fort Morgan, and his
infantry every foot of Mobile to the point out
side the Fort, he would not permit a boats crew
to pass off from shore on any pretense what
ever.
Soon after General Granger arrived and the
note TO Admiral FarIagut was taken by him,
saying he would communicate its contents to
the Admiral in short time.
demand for an unconditional surrender WAS
made and granted
The results of the victory at Mobile may be
summoned up thus:
1t compelled the evacuation OF Fort Powell
the surrender of Fort Gaines. almost destroyed,
and compelled the surrender of Fort Morgan,
heretofore considered the strongest fortifcation
In the United States.
We have taken 500 prisoners. 100 pieces of
cannon and vast quantity Of small arms and
munitions OF war. Also provisions enough TO
feed the garrison shall place there for six
months.
! We have captured aud ready for use the ram
Tennessee. the strongest war vessel aiOat, also
several other vessels. and have penned 10 at
least three English blockade runners
All this has cost the army one man killed and
SIX wounded, and the navy the loss of the Te
cumseh and part OF her crew, and very few
sualties in other ships.
The Herald's Washington special says:
The sth Illinois cavalry have just returned
from their scout to Upperyile. Ashby's and
Suckers Gap.
! They had orders from Sheridan to arrest all
able bodied men between the ages o: eighteen
| aud fifty.
! Accordingly. thirty two of snch men were
brought in, including few of Mosby's men.
The party destroyed seven thousand pounds
Of wool, and captured one thousand pounds of
cotton yarn.
/ They also secured thirty eve horses.
: They could not get fight out of Mosby, al
though he is reported to have six hundred men
and five pieces of artillery
The Herald's correspondent with Averill s
| cavalry September lst, SAYS:
1t was Rhodes corps of rebel infantry togeth-
er with Vaughn's cavalry that attacked Averll' S
division at Martinsburg yesterday evening
! They apparently hoped to surprise Averll bat
failed
/ Early was at Winchester last night and the
Z hasty retreat of Rhodes corps this morning. in
dcates that the rebels have important reasons for
moving up the Valley
( The rebels lost both time and men by this ast
operation
This morning Averill attacked the enemy with
portion of bis cavalry, driving the rebels out
of Martnsburg and occupying the town, and
continuing the pursuit to point four miles to
wards Winchester.