C. Examining the Financial Picture When Creating New Ventures
II. Acquiring an Established Entrepreneurial Venture
A. Personal Preferences
B. Examination of Opportunities
B. Advantages of Acquiring an Ongoing Venture
1. LESS FEAR ABOUT SUCCESSFUL FUTURE OPERATION
2. REDUCED TIME AND EFFORT
3. A GOOD PRICE
C. Evaluation of the Selected Venture
D. Key Questions to Ask
1. WHY IS THE BUSINESS BEING SOLD?
2. WHAT IS THE CURRENT PHYSICAL CONDITION OF THE BUSINESS?
3. WHAT IS THE CONDITION OF THE INVENTORY?
4. WHAT IS THE STATE OF THE COMPANY’S OTHER ASSETS?
5. HOW MANY OF THE EMPLOYEES WILL REMAIN?
6. WHAT TYPE OF COMPETITION DOES THE BUSINESS FACE?
7. WHAT DOES THE FIRM’S FINANCIAL PICTURE LOOK LIKE?
E. Negotiating the Deal
III. Franchising: The Hybrid
A. How Franchising Works
B. Advantages of Franchising
1. TRAINING AND GUIDANCE
2. BRAND-NAME APPEAL
3. A PROVEN TRACK RECORD
4. FINANCIAL ASSISTANCE
C. Disadvantages of Franchising
1. FRANCHISE FEES
2. FRANCHISOR CONTROL
3. UNFULFILLED PROMISES
D. Franchise Law
E. Evaluating Franchising Opportunities
1. LEARNING OF FRANCHISING OPPORTUNITIES
2. INVESTIGATE THE FRANCHISOR
3. SEEKING PROFESSIONAL HELP
4. MAKING THE DECISION: IT’S UP TO THE ENTREPRENEUR
FEATURED CONTENT
Entrepreneurship in Practice: The “Real” Opportunities in Virtual Worlds
The Global Perspective: Taking Cues from the Third World Entrepreneurship in Practice: Some of the Most Recognized Franchises Entrepreneurship in Practice: To Franchise or Not to Franchise, That Is the Questions The Entrepreneurial Process: The Franchise Disclosure Document
CHAPTER OBJECTIVES
1 To describe the major pathways and structures for entrepreneurial ventures
2 To present the factors involved in creating a new venture
3 To identify and discuss the elements involved in acquiring an established venture
4 To outline ten key questions to ask when buying an ongoing venture
5 To examine the underlying issues involved in the acquisition process
6 To define a franchise and outline its structure
7 To examine the benefits and drawbacks of franchising
8 To present the franchise disclosure document (FDD) as a key item in franchises
CHAPTER SUMMARY
The easiest and best way to approach a new business venture is to design a unique product or service. Sometimes this involves what is called a new-new approach – that is, the development of an entirely new idea for a product or service, as was the case with Zynga and Google. In most instances, however, the prospective owner-manager must be content to use a new-old approach by “piggybacking” on someone else’s ideas. This involves either expanding on what the competition is doing or offering a product or service in an area where it is not presently available.
On the financial side, the prospective owner-manager needs to examine the enterprise’s financial picture and to determine the costs of setting up the operation and the amount of revenue that will be generated during the initial period. Finally, the prospective owner-manager must review a series of other operational considerations ranging from the building, merchandise, and equipment needed for operations to record keeping, insurance, legal, marketing, and personal matters.
Another opportunity is the purchase of an existing successful firm. It has a number of advantages. Three of the most important are that its successful future operation is likely, the time and effort associated with starting a new enterprise are eliminated, and a bargain price may be possible.
Before deciding whether to buy, however, the prospective owner needs to ask and answer a series of “right questions,” Some of these follow: Why is the business being sold? What is the physical condition of the business? What is the condition of the inventory? What is the state of the company’s other assets? How many of the employees will remain? What competition does the business face? What is the firm’s financial picture?
After all questions have been answered satisfactorily, the prospective buyer must negotiate for the business. In the final analysis, however, the prospective owner should be concerned with buying the company’s assets at market value and then paying something for goodwill if it is deemed an asset. Valuation is discussed further in Chapter 14.
LECTURE NOTES
I. Creating New Ventures
Every prospective entrepreneur wants to know the best method for getting a new business started.
New-New Approach to Creating New Ventures
The most effective way to start a new business is via the introduction of new products or services into a market.
Most business ideas for new ventures come from one’s experience, such as prior jobs, hobbies or interests, and personally identified problems.
New-Old Approach to Creating New Ventures
Most small ventures do not start with a totally unique idea. Instead, they often “piggyback” on someone else’s idea by either improving a product or offering a service in an area where it is not currently available.
Examining the Financial Picture When Creating New Ventures
The worst thing an entrepreneur can do is adopt an “all or nothing” strategy to creating a new venture.
The entrepreneur must consider the enterprise’s financial picture. Consideration of startup and monthly expenses is a must. The entrepreneur must be concerned with upside gain and downside loss (the profits the business can make and the losses it can suffer). The entrepreneur must gain an adequate return on the amount of money risked.
II. Acquiring an Established Entrepreneurial Venture
Prospective entrepreneurs may elect to purchase an existing business rather than start one, but purchasing a business venture is a complex process.
Personal Preferences
Entrepreneurs need to limit their choices of ventures to buy by recognizing certain personal factors: background, skills, interests, and experience all factors that should be weighed in selecting the type of business to buy.
Examination of Opportunities
Business brokers, newspaper ads, trade sources, and professional sources can all be sources of information for possible businesses to buy.
Advantages of Acquiring an Ongoing Venture
Three of the most important advantages of acquiring an ongoing venture are discussed below.
LESS FEAR ABOUT SUCCESSFUL FUTURE OPERATION
A successful business has already proved that it has the ability to attract customers and control costs.
REDUCED TIME AND EFFORT
An ongoing enterprise has already assembled the inventory, equipment, personnel and facilities to run it.
An ongoing enterprise has already established relationships with suppliers, bankers, and other businesspeople.
A GOOD PRICE
It may be possible to purchase on ongoing venture at a very good price.
Evaluation of the Selected Venture
Specific factors can be useful in evaluating the venture being offered, such as the local environment of the business, its location, profit potential, and tangible and intangible business assets.
Key Questions to Ask
Asking the right questions is critical.
WHY IS THE BUSINESS BEING SOLD? WHAT IS THE CURRENT PHYSICAL CONDITION OF THE BUSINESS?
WHAT IS THE CONDITION OF THE INVENTORY? WHAT IS THE STATE OF THE COMPANY’S OTHER ASSETS? HOW MANY OF THE EMPLOYEES WILL REMAIN? WHAT TYPE OF COMPETITION DOES THE BUSINESS FACE? WHAT DOES THE FIRM’S FINANCIAL PICTURE LOOK LIKE?
Negotiating the Deal
The potential buyer must negotiate the final deal. Information, time, pressure, and alternatives are all factors that should be considered in the negotiations. Without reliable information, the buyer is at a disadvantage; having more time to make the deal is an advantage to that party; pressure from other owners can influence the deal; and a lack of alternatives in whether to make the deal can conclude negotiations quickly.
III. Franchising: The Hybrid
A franchise is any arrangement in which the owner of a trademark, trade name, or copyright has licensed others to use it in selling goods or services. A franchisee is the purchaser of a franchise, and a franchisor is the seller of the franchise.
How Franchising Works
The franchisee usually contracts for the following business package:
• Make a financial investment in the operation
• Obtain and maintain a standardized inventory and/or equipment package
• Maintain a specified quality of performance
• A franchise fee
• Engage in a continuing business relationship
The franchisor usually provides:
• The company name
• Symbols, logos, designs, and facilities
• Professional management training
• Sale of specific merchandise necessary for the unit’s operations at wholesale prices
• Financial assistance
• Continuing aid and guidance
Advantages of Franchising TRAINING AND GUIDANCE BRAND-NAME APPEAL A PROVEN TRACK RECORD FINANCIAL ASSISTANCE
Disadvantages of Franchising FRANCHISE FEES It is not uncommon to be faced with fees of $50,000 to $1,000,000.
FRANCHISOR CONTROL The franchisor generally exercises a fair amount of control over the operation in order to maintain a degree of uniformity. UNFULFILLED PROMISES In some cases, especially among less-known franchisors, the franchisees have not received all they were promised.
Franchise Law
The courts tend to apply general common-law principles and appropriate federal or state statutory definitions and rules, due to the absence of case law on franchises. Termination provisions of franchise contracts normally favor the franchisors.
Evaluating Franchising Opportunities
Activities that potential franchisees perform: LEARNING OF FRANCHISING OPPORTUNITIES INVESTIGATING THE FRANCHISOR SEEKING PROFESSIONAL HELP MARKING THE DECISION: IT’S UP TO THE ENTREPRENEUR
SUGGESTED ANSWERS FOR DISCUSSION QUESTIONS (END OF CHAPTER)
1. Identify the three main pathways to entering business for a prospective entrepreneur.
The three most common methods for entering business are to create a new venture, acquire an existing venture, or obtain a franchise.
2. What is the new-new approach to starting a new venture? How does this approach differ from a new-old approach? New-new is when you enter a market with a new product or service. Examples of recent new-new entries are plasma televisions, smartphones, and GPS devices. New-old is either improving a product or offering a service in an area where it is not currently available. While the new-new approach may receive more attention, it is more common to see companies started with new-old approaches. There are a lot of underserved markets around the world where a new-old approach can prove quite successful.
3. How can an individual who is thinking of going into business evaluate the financial picture of the enterprise? Use the methodology of Table 7.2 to prepare your answer. The entrepreneur must estimate how much it will cost to stay in a business for year, how much revenue will be generated during this period, and how long it will take the company to generate positive cash flow. An individual considering starting a business needs to consider the start-up and monthly expenses of the operation. Upside gain and downside losses must be estimated. What are the possible profits and losses of the company? Table 7.2 provides a helpful way of calculating these figures.
4. In addition to personal and financial issues, what other factors should the prospective owner be concerned with? Describe at least four.
Factors to consider when going into business are many. Besides the personal and financial, if you’re considering starting a business you should review operational considerations such as the building, merchandise, and equipment needed for operations in record keeping, insurance, legal, marketing, and personal matters. If you’re buying an already existing business, you should also consider why the business is being sold, what the condition of the business is, what the condition of the inventory is, what the state of the company’s other assets are, how many of the employees will remain, and what the competition is
5. What are the advantages of buying an ongoing business? Explain them.
(1) Less fear about successful future operation since the enterprise is already in operation, its successful future operation is likely.
(2) Time and effort associated with starting a new enterprise are eliminated. The inventory, equipment, personnel, and facilities are already in place.
(3) It sometimes is possible to buy an ongoing business at a bargain price. The owner may want to sell it quickly because of retirement, illness, to raise money for an emergence, or to pursue another opportunity soon.
6. What “right questions” need to be answered when deciding whether to buy a business?
(1) Why is the business being sold?
(2) What is the current physical condition of the business?
(3) What is the condition of the inventory?
(4) What is the state of the company’s other assets?
(5) How many of the employees will remain?
(6) What type of competition does the business face?
Chapter 7/ Pathways to Entrepreneurial Ventures
(7) What does the firm’s financial picture look like?
7. How should a prospective buyer examine the assets of a company? Explain. The tangible (physical) and intangible (for example, reputation) assets of the company need to be assessed. These assets include inventory (age, quality, salability, and condition), furniture, equipment, fixtures (value, condition, lease or owned), accounts receivable (age of outstanding debts, past collection periods, credit standing of customers), trademarks, patents, copyrights, business name (value, role in the business’s success, degree of competitive advantage, and goodwill (reputation, established clientele, trusted name).
8. What is meant by the term franchise?
A franchise is any arrangement in which the owner of a trademark, trade name, or copyright has licensed others to use it in selling goods or services.
9. In a franchising agreement, what is the franchisee often called on to do? What responsibility does the franchisor assume?
The franchisee usually contracts for the following business package:
(1) Make a financial investment in the operation
(2) Obtain and maintain a standardized inventory and/or equipment package
(3) Maintain a specified quality of performance
(4) A franchise fee
(5) Engage in a continuing business relationship
The franchisor usually provides:
(1) The company name
(2) Symbols, logos, designs, and facilities
(3) Professional management training
(4) Sale of specific merchandise necessary for the unit’s operations at wholesale prices
(5) Financial assistance
(6) Continuing aid and guidance
10. What are some of the major advantages of franchising? Cite and explain three. The advantages of franchising include training and guidance from the franchisor, brandname appeal, a proven track record, and some financial assistance. Professional training and guidance from an established franchise gives a franchisee a great advantage over the small business owner starting from scratch. The franchise also has already invested heavily to promote the name of the franchise, so the new business will have instant recognition and legitimacy in the market. Franchises will often offer help in getting the business started by offering loans and not requiring any repayment until the operation is running smoothly.
11. What are some of the major disadvantages of franchising? Cite and explain at least two.
The disadvantages of franchising are the franchise fees both initial fee and royalty payments each year, control exerted by the franchisor, and the sometimes unfulfilled
Chapter 7/ Pathways to Entrepreneurial Ventures
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promises made by franchisors to franchisees. There will the usual start-up costs of creating a business, as well as the franchise fees that must be paid. This may prove too large a burden for the entrepreneur. Many entrepreneurs enter business to be their own boss, but the franchise may be stifling to the owner. With less established franchises with less reliable reputations, franchisees may become frustrated if the franchisor is lax about holding up their end of the contract.
12. How can a prospective franchisee evaluate a franchise opportunity? Explain. The key to evaluating the value of a prospective franchise is a proper information search. It is important to examine the Uniform Franchise Offering Circular (UFOC), in order to learn more about the franchise. Typically, the age of a franchise, number of retail units, concentration in the state, and national representation are all reflected in the price. However, it is vital to do due diligence in learning all one can about a franchise from many sources, such as current and past owners of the franchise.
13. In evaluating whether or not to buy a franchise operation, the potential investor should ask a series of questions. What questions should the potential investor ask about the franchisor, the franchise, the market, and the potential investor (himself or herself)?
There are a number of questions the potential investor should ask:
(1) What are the contract provisions? Can the franchisor take away the franchise for minor infractions?
(2) Is the franchise prospectus reasonable? Is the projected revenue too high for a new unit? Is the return on investment overly optimistic? Would the bank be prepared to advance a loan on this type of business undertaking?
(3) Does the investment look promising? What might go wrong and jeopardize those investments?
(4) Ultimately, am I willing to take the risk on this franchise?
14. What are the advantages and disadvantages of franchising?
Advantages of franchising:
(1) Training and guidance
(2) Brand-name appeal
(3) A proven track record
(4) Financial assistance
Disadvantages of franchising:
(1) Franchise fees it is not uncommon to be faced with a fee of $5000 to 100,000
(2) Franchisor control the franchisor generally exercises a fair amount of control over the operation in order to maintain a degree of uniformity.
(3) Unfulfilled promises in some cases, especially among less-known franchisors, the franchisees have not received all they were promised.
15. Identify the Franchise Disclosure Document. Explain why it is important in franchising.
The Franchise Disclosure Document was originally known as the Uniform Franchise Offering Circular (UFOC). It underlies the franchise agreement (the formal sales contract) between the parties at the time the contract is formally signed. It governs the long-term relationship and contains the only promises and obligations of the parties to each other that will remain in effect over the stated time term of the contracts. The FDD is essential for providing information as to the obligations of the franchisee and franchisor. Anyone considering buying a franchise should carefully read the FDD to ensure it is an arrangement they want to enter into in the long term.
TEACHING NOES FOR END-OF-CHAPTER EXERCISE
The Personal Entrepreneurial Action Plan
Before a prospective entrepreneur goes into business, they need to ask a number of personal questions. Ten questions are listed, and the reader is asked to mark the response that best fits them. After answering the questions, the reader is to count the number of times the first choice was selected and multiple it by 3, count the number of times the second choice was marked and multiple it by 2, and count the number of times the third choice was marked. Total the three numbers. The reader is advised that if the number is not at least 25, then they may want to consider either bringing in a partner or abandoning the project.
TEACHING NOTE FOR END-OF-CHAPTER CASES
Case 7.1: An Idea for the Dogs!
1. Is anything unique about Chris’s idea? Explain. Chris has a unique idea in the sense that he is finding a niche in the market he wants to enter. An entrepreneur is making custom doghouses and selling them for $5,000 to $15,000. Most doghouses sell for $50 to $150. It would appear there is middle ground for customers who want a special home for their canine companions but can’t afford to spend $5,000 on it. Additionally, pet owners are spending larger sums of money their dogs these days. The idea has potential.
2. What is the first thing he should do to follow up on his idea? Explain. Chris needs to study the market and the buying behaviors of its customers. Is the $50 to $150 doghouse adequate for most dog owners? What would they be willing to pay more for? What features matter most to them regarding doghouses? What are they willing to pay for a doghouse? A profile of these buyers would be useful.
3. When this is done, what else should Chris do? Outline a general course of action for him. Once Chris finds out whether the market has potential, he then must determine if it’s feasible for him to pursue. A doghouse that is well insulated, floored with washable
Chapter 7/ Pathways to Entrepreneurial Ventures
vinyl, and personalized to the dog and designed like the owner’s own home would probably be more expensive than $500. Chris must begin to work with the concept to make it appealing to consumers, both with regards to features and price, while still being profitable to him. At this point, Chris might consider writing a business plan to examine the different elements of his business that must be in place for him to be successful.
Case 7.2: Checking It Out
1. What is your appraisal of the situation? Does it look good or bad?
Arlene must be very careful in this situation. The fact that the company has 111 franchises throughout the nation is a potentially good sign. The $75,000 franchise fee and the 4 percent of gross revenues may be reasonable too. However, Arlene must do her due diligence to insure that there are no potential problems with this franchise. There are troubling signs. First, a woman is willing to sell her franchise for less than the $75,000 franchise fee, which would imply that she is wanting to get out of the situation. Also, she is having a hard time acquiring information about the franchise. The lack of professionalism displayed by the franchisor is also a concern.
2. Would you recommend that Arlene buy the franchise from the woman who has offered to sell? Why or why not?
Arlene should not buy the franchise from the woman. It could potentially be a good deal, but she does not have enough information to go off of to make such a big decision. She must first know all she can about the franchise before buying it.
3. What would you recommend Arlene do now? Be complete in your answer. I would recommend Arlene do more due diligence. She needs to learn all she can about the franchise. Does the franchise deliver on its promises? Is it supportive of its franchisees? What is the track record of other franchisees? Until she has answers to questions, she should pass on buying this franchise.
SMALL BUSINESS AND ENTREPRENEURIAL RESOURCE CENTER
Sources:
Question 1:
Franchising Weathers Economic Challenges (IFA PRESIDENT'S COLUMN)(Industry overview). Matthew Shay. Franchising World 40.5 (May 2008): p8(1).
Kiplinger Business Forecasts 2007.(Nov 5, 2007): pNA.
Source Citation: Mogul, Matthew. "Want to Buy a Business? Your Timing is Right." Kiplinger Business Forecasts 2007. (Nov 5, 2007): NA. Small Business Resource Center. Gale. Higher Education. 12 Oct. 2012.
Questions:
1. Why have franchises, historically, outperformed independent businesses during times of economic uncertainty? What evidence does the article provide to substantiate this claim?
A. One major reason franchises have historically outperformed independent businesses during bad economic times is job security. As corporations tighten their belts and reduce their workforces, those who find themselves facing layoffs begin the search for alternatives. One popular alternative is self-employment and it doesn't take long to realize that owning a franchise is a much better alternative than starting a business from scratch.
As evidence of the resiliency of the franchising industry is the fact that the economic output due to franchising grew by more than 40 percent, while all other businesses increased by only 26 percent. Employment in franchising grew by more than 12 percent compared to the 3 percent of other businesses. These growth rates have proven, beyond anecdotal evidence, that franchising is counter-cyclical to an underperforming economy.
2. Why is there going to be a glut of businesses on the market for sale? What can you do to prepare, if you were going to sell or buy one of these businesses?
A. Expect that many businesses will go up for sale as thousands of baby boomers retire. With about 8,000 Americans turning 60 every day, more and more business owners are thinking about retiring. By 2009, an estimated 750,000 companies owned by boomers one in every six will be looking for buyers, up fifteen-fold from 2001.
Most firms will sell to strangers. Children today feel less pressure to run the family business, and even those that want to often find it tough to come up with the cash to pay off parents or other relatives who hold shares in the firm. Family in-fighting and prolonged legal spats also make family handoffs that much harder. Studies show that less than 15% of family businesses successfully make it down the third generation.
There will be opportunities to buy businesses at a discount. With roughly 20 million more people in the boomer generation than the X Generation, there will be fewer potential buyers, so a good price will be harder to find. Current business owners will need to an exit strategy to avoid selling at a steep discount.
Expert advice is a must. Owners need to consult a battery of advisers, from attorneys to accountants to appraisers, at least a year or so ahead of any expected sale. Potential buyers, including rival businesses, private equity firms and venture capitalists, all have sophisticated experts on their side and owners will need to be able to keep up. An exit planning team will
do everything from entertaining bids from potential suitors to making sure the sale is taxadvantageous to spotting and correcting hidden liabilities that could torpedo a sale.
One option that's growing more popular is selling to employees either a management buyout or employee stock ownership plan (ESOP). Both take time to set up but give owners the fulfillment that they're passing on their legacy. In management buyouts, owners must weed out ill-suited managers and groom and train the best personnel so the firm will succeed without them. In these cases, management will often buy into the business over a number of years.
An ESOP tends to be a good route for firms with stable earnings and revenue. But the plan gets way too costly for small firms those under $1 million in yearly pre-tax profit due to associated upkeep costs like annual appraisals.
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from her bow and stern chasers. We fully realized this last night; for, as we got within short range, the enemy poured into us a terrible fire of grape and canister, which we were not slow to return—our guns being double-shotted, each with a stand of both grape and canister. Every vessel in its turn was exposed to the same fiery ordeal on nearing the centre battery, and right promptly did their gallant tars return the compliment. This was the hottest part of the engagement. We were literally muzzle to muzzle, the distance between us and the enemy’s guns being not more than twenty yards, though to me it seemed to be only as many feet.
“Matters had gone on in this way for nearly an hour and a half— the first gun having been fired at about half past eleven o’clock— when, to my astonishment, I heard some shells whistling over our port side. Did the rebels have batteries on the right bank of the river? was the query that naturally suggested itself to me. To this the response was given that we had turned back. I soon discovered that it was too true. Our return was, of course, more rapid than our passage up. The rebels did not molest us much, and I do not believe one of their shots took effect while we were running down rapidly with the current. It was a melancholy affair, for we did not know but what the whole expedition was a failure; neither could we tell whether any of our vessels had been destroyed, nor how many. We had the satisfaction of learning soon afterward, however, that the Hartford and Albatross had succeeded in rounding the point above the batteries. All the rest were compelled to return. As I passed the machinery of the vessel, on my way forward, I was shown a large hole that had been made by an eighty-pounder solid conical shell, which had passed through the hull of the ship, damaging the machinery so as to compel us to return.”
During the naval combat, General Banks marched three divisions of his army from Baton Rouge, to a point within seven miles of Port Hudson, where after engaging in a skirmish with the enemy, with trifling loss, they returned to their starting point. Being unprepared as yet to undertake the capture of Port Hudson, General Banks now turned his attention to that portion of the State west of New Orleans, and bordering on the Teche river. This diversion, it was afterward discovered, would have been made unnecessary, had General Banks possessed the means of learning the exact force of the rebels at Port
Hudson, which was by no means so formidable as he had reason for believing.
The Teche river is a tortuous stream rising in St. Landry parish, and flowing southwardly. On its bank are the towns of Franklin, Martinsville, and Opelousas. General Weitzel had previously made an unsuccessful expedition up that river, and to guard against further invasion a considerable rebel force was now posted in that region, and heavy earthworks were thrown up in the vicinity of Patersonville. The district of country bordering on the Teche, comprised the parishes of Terrebonne, Lafourche, Assumption, St. Mary, and St. Martin, rich in agricultural wealth, and having a large slave population. This district had furnished valuable supplies to the rebel army.
OPERATIONS ON THE TECHE AND ATCHAFALAYA RIVERS, LA.
A 13–20, 1863.
General Banks having concentrated his forces at Brashear, General Weitzel’s brigade was crossed over to Berwick on the 10th of April, without opposition, followed on the succeeding day by General Emory’s division, and both commands advanced upon the fortified position a few miles above Pattersonville. On the 13th, there was considerable artillery firing, in which the gunboat Diana, a late Federal capture, took active part. On the 12th, the division of General Grover left Brashear on the gunboats Clifton, Estrella, Arizona, and Calhoun, and transports, and proceeded up the Atchafalaya river, which joins the Teche at Berwick City, into Lake Chetimacha. The object was to get into the rear of the enemy, and if possible cut off his retreat if he evacuated his position, or to assail him in rear at the time of the attack in front. The expedition effected a landing early the next morning, about three miles west of Franklin, near a spot called Irish Bend. At this time, the gunboat Queen of the West, which had been captured previously by the enemy, was blown up and destroyed on the lake. Skirmishing immediately ensued with a small force of the enemy, that fell back as General Grover advanced. His position was about eleven miles distant from General Banks.
BATTLE OF IRISH BEND, LA.
A 13, 1863.
A correspondent in the army thus describes this battle:
“About seven o’clock A. M., the advance reached the edge of a dense line of woods near what is known as Irish Bend (a sharp bend of the Teche), about eleven miles distant from the rebel earthworks, where General Banks was engaging the enemy. Here our force was met by a strong one of the rebels, in position, from the banks of the Teche, across the front and right flank of General Grover’s division. The enemy was strongly posted at this point, their right flank supported by artillery, and their left extending round into another wood, in such a manner as to completely encircle any force which should simply attack their position in the wood first spoken of.
“Colonel Birge, of the Third Brigade, of General Grover’s division, at this time in command of the advance, and supported by two sections of Rogers’s battery, now skirmished with the rebels in front for about an hour, our skirmishers and their supports engaging the infantry and dismounted cavalry of the enemy. Colonel Birge then ordered the Twenty-fifth Connecticut and One Hundred and Fiftyninth New York in front of the first skirt of woods. He had no sooner done this than the enemy commenced a flank attack, endeavoring to take the section of Rogers’s battery which was on the right. These two regiments, assailed by a fire on their front and right from an enemy very perfectly concealed, replied ineffectually to the fire, became shaken, and finally commenced to fall back, when General Grover rode up to the front and rallied them, at the same time ordering General Dwight to hasten up with his brigade. The section of Rogers’s battery was compelled to limber up and go to the rear, the fire of the enemy being so lively as to pick off nine cannoneers at their guns.
“At this time General Dwight moved on the field with his brigade, and placed the Sixth New York on his right, in such a manner as to outflank the enemy’s left, in a similar way that the enemy had outflanked our right. The Ninety-first New York was ordered in front to advance against the woods, with the First Louisiana supporting the Sixth New York, and the Twenty-second Maine and One Hundred and Thirty-first New York in support of the Ninety-first New York.
“The order to advance was given, and like veterans they moved forward across the field, through the woods, and over another field, the enemy slowly but surely falling back before them; sweeping on, taking from him all his positions, and finally compelling him to so hasty a retreat that he left over one hundred prisoners in our hands. Then the position which Colonel Birge’s brigade failed to take, with a loss of something over three hundred men, was taken by General Dwight, with a loss of only seven killed and twenty-one wounded.
“General Dwight was now ordered to halt, take a favorable position, and hold it. This was done, the enemy continuing to manœuvre in front of General Dwight’s and Colonel Birge’s commands, for two or three hours.
“Our troops in the mean time, had been ordered by General Grover to rest in their places until further orders, which they did until about three P. M., when an order was given to feel the enemy on the front and flank, with a view to our attacking their position in force.
“Before any considerable advance further was made the enemy evacuated, retreating to the woods and canes, having previously set fire to the gunboat Diana, and transports Gossamer, Newsboy, and Era No. 2. They were signally repulsed, with a loss of from three to four hundred. On the field of battle, one hundred and fifty prisoners were taken, and thirty wounded.
“Among the killed is General Riley, and among the wounded, Colonel Gray.”
This success of General Grover was followed by the evacuation of the works before General Banks. Early on Tuesday, the 15th, the cavalry and artillery, followed by General Weitzel’s brigade, with Colonel Ingram’s force of General Emory’s division, as a support, followed the enemy. So rapid was the pursuit that the enemy was
unable to remove their transports at New Iberia, and five, with all the commissary stores and ammunition with which they were loaded, were destroyed at that place, together with an incomplete iron-clad gunboat. On Thursday the army reached New Iberia. A foundry for the manufacture of cannon and other munitions of war was immediately taken possession of, and a similar one had been seized two days before at Franklin. Two regiments were also sent to destroy the tools and machinery at the celebrated salt mine of the town. Thus far about fifteen hundred prisoners had been captured, and more than five hundred horses, mules, and beef cattle taken from the plantations. The Federal loss was small. The entire force of the enemy was about ten thousand men.
On the next day, the 17th, the army moved forward, but General Grover, who had marched from New Iberia by a shorter road, and thus gained the advance, met the enemy at Bayou Vermilion. Their force consisted of a considerable number of cavalry, one thousand infantry and six pieces of artillery, massed in a strong position on the opposite bank. They were immediately attacked and driven from their position but not until they had succeeded in destroying by fire the bridge across the river. The night of the 17th and the next day was passed in rebuilding the bridge. On the 19th, the march was resumed, and continued to the vicinity of Grand Coteau; and on the next day the main force of General Banks occupied Opelousas. At the same time, the cavalry, supported by a regiment of infantry and a section of artillery, were thrown forward six miles to Washington, on the Courtableau. On the 21st, no movement was made, but on the next day, Brigadier-General Dwight, of General Grover’s division, with detachments of artillery and cavalry, was pushed forward through Washington toward Alexandria. He found the bridges over the Cocodrie and Bœuf destroyed, and during the evening and night replaced them by a single bridge at the junction of the bayous. Orders were also found there from General Moore to General Taylor, in command of the Confederate force, directing him to retreat slowly to Alexandria, and, if pressed, to retire to Texas.
Bute a la Rose, with its garrison of sixty men, two heavy guns, and a large quantity of ammunition, was captured by General Banks. The result of the expedition thus far is thus stated by General Banks: “We have destroyed the enemy’s army and navy, and made their
reorganization impossible by destroying or removing the material. We hold the key of the position. Among the evidences of our victory are two thousand prisoners, two transports, and twenty guns taken, and three gunboats and eight transports destroyed.” The Federal loss in the land battle was six or seven hundred.
Admiral Porter took possession of Alexandria on the 6th of May, without opposition, and General Banks established his headquarters at that place on the day following. This town is situated on the Red river, one hundred and fifty miles from its mouth. Admiral Porter thus describes his operations at this time in a dispatch to Secretary Welles, dated May 13:
“S : I had the honor to inform you from Alexandria of the capture of that place, and the forts defending the approaches to the city, by the naval forces under my command. Twenty-four hours after we arrived the advance guard of United States troops came into the city. General Banks arriving soon after, I turned the place over to his keeping. The water beginning to fall, I deemed it prudent to return with the largest vessels to the mouth of the Red river. I dropped down to Fort de Russe in the Benton, and undertook to destroy these works. I only succeeded however, in destroying the three heavy casemates commanding the channel and a small water battery for two guns. About six hundred yards below it I destroyed by bursting one heavy thirty-two pounder and some gun carriages left in their hurry by the enemy.
“The main fort, on a hill some nine hundred yards from the water, I was unable to attend to. It is quite an extensive work, new and incomplete, but built with much labor and pains. It will take two or three vessels to pull it to pieces. I have not the powder to spare to blow it up. The vessels will be ordered to work on it occasionally, and it will be soon destroyed. In this last-mentioned fort was mounted the 11-inch gun, which I am led to believe lies in the middle of the river, near the fort, the rebels throwing it overboard in their panic at the approach of our gunboats. The raft which closed the entrance I have blown up, sawed in two, and presented to the poor of the neighborhood. I sent Commander Woodworth in the Price, with the Switzerland, Pittsburg, and Arizona, up Black river to make a reconnoissance, and he destroyed a large amount of stores, valued at three hundred thousand dollars, consisting of salt, sugar, rum, molasses, tobacco, and bacon.
(Signed)
DAVID D. PORTER, Acting Rear-Admiral, Commanding Mississippi Squadron.
General Banks now concentrated his troops at Simmesport, preparatory to an advance on Port Hudson.
Minor expeditions were meanwhile taking place in other districts of the department. A brigade under General Nickerson advanced to the neighborhood of Lake Pontchartrain, destroying some valuable property, and capturing a few prisoners. A portion of General Auger’s division penetrated to a point on the railroad between Clinton and Port Hudson, where they encountered and routed a Confederate force, killing five and capturing twenty-five. Colonel Grierson was also successful in an expedition near Port Hudson, capturing three hundred head of cattle.
Admiral Farragut now in command of the fleet, was preparing to assist in the attack on Port Hudson. General Banks’s army advanced about the middle of May from Baton Rouge to Port Hudson, portions of his army on either bank of the Mississippi, and a part being forwarded on transports.
On the 21st of May General Banks landed, and on the next day a junction was effected with the advance of Major-General Augur and Brigadier-General Sherman. His line occupied the Bayou Sara road. On this road General Augur had an encounter with a force of the enemy, which resulted in their repulse with heavy loss. On the 25th the enemy was compelled to abandon his first line of works. On the next day General Weitzel’s brigade, which had covered the rear in the march from Alexandria, arrived, and on the morning of the 27th a general assault was made on the fortifications.
Three series of batteries extended along the river above Port Hudson to a point on Thompson’s creek, making a continuous line about three and a half miles in extent. Above Thompson’s creek is an impassable marsh, forming a natural defence. From the lower battery began a line of land fortifications, of semi-circular form, about ten miles in extent, with Thompson’s Creek for its natural terminus above.
ATTACK ON PORT HUDSON, LA.
M 27, 1863.
It having been understood that a grand and simultaneous attack from every part of the lines encircling Port Hudson was to be made on Wednesday, the 27th, General Augur, as early as 6 A. M. of that day, commenced a heavy cannonade upon the works, which continued incessantly until 2 o’clock, P. M.
At 10 o’clock, General Weitzel’s brigade, with the division of General Grover—reduced to about two brigades—and the division of General Emory, temporarily reduced by detachments to about a brigade, under command of Colonel Paine, with two regiments of colored troops, made an assault upon the right of the enemy’s works, crossing Sandy creek, and driving them through the woods into their fortifications. The fight lasted on this line until 4 o’clock, and was very severely contested. Brigadier-General Sherman, who intended to commence his assault at the same time on the left, had his troops in readiness.
General Augur’s assaulting forces consisted only of Colonel E. P. Chapin’s brigade, viz., the Forty-eighth Massachusetts, led by Lieutenant-colonel O’Brien; the Forty-ninth Massachusetts, by Colonel F. W. Bartlett; the One Hundred and Sixteenth New York, led by Major Love; and the Twenty-first Maine, by Colonel Johnson; also two regiments of Colonel Dudley’s brigade, called up from the right, viz., the Second Louisiana, under Colonel Paine; and parts of the Fiftieth Massachusetts, under Colonel Messer.
Before commencing the assault Captain Holcomb’s Vermont battery played upon the works to draw their fire, which he did very effectively; and then the order for the assault was given. A number of brave fellows from each regiment had volunteered to go in advance with the fascines, for the purpose of making a roadway through the
moat; these were immediately followed by others who had volunteered to form the assaulting party; and after them the various regiments with their colonels, all under the immediate direction of Major-General Augur.
The scene that presented itself to the view as the devoted men emerged from the wood was really appalling. Between them and the fortifications to be assaulted lay an immense open space, at least a mile in length, from right to left, and at least half a mile in depth from the edge of the wood. This space was originally a dense forest, but the rebels had ingeniously felled the trees, leaving the huge branches to interlace each other, and forming, with the thick brushwood underneath, a barrier all but impassable.
It was enough to daunt the stoutest hearts; but the order had been given that Port Hudson must be taken that day, and the brave men advanced.
In so horrible a place, where men could scarcely keep their footing, and were sinking at every step up to their arm-pits, and tumbling along as best they could with their muskets and fascines through the impenetrable rubbish—the enemy all the while blazing away at them with grape, shell, and canister—the result may easily be imagined. It was wholesale slaughter.
But it was cheering to see the heroism and endurance of the men. Onward they went—the old flag streaming proudly above them (the fascine-bearers falling in every direction)—until they actually, many of them, fought their way through the half mile of tangled rubbish to the narrow open space between it and the breastworks, where, as a matter of course, the gallant fellows perished. The unequal contest lasted from 3 P. M. to 5 P. M., when General Augur, finding it utterly impossible to carry out the instructions he had received, withdrew his men in perfect order—returning shot for shot as they got back to the wood.
A vigorous bombardment of the position had been made by Admiral Farragut for a week previous to this assault; and reconnoissances had discovered pretty accurately the nature of these formidable defences.
ASSAULT ON PORT HUDSON, LA.
J 14, 1863.
After a bombardment of several days, another assault on Port Hudson was made on the above date. General Banks deemed it necessary on this occasion to change the position of his troops, and they now formed a right and left wing, without the customary centre, and were joined in the form of a right angle. The division of General Grover, on the upper side of Port Hudson, extended a distance of nearly four miles from the river, toward the interior, within supporting distance of General Augur’s division, which was on the west side of the fortifications, and extended a distance of three miles to the river, within hailing distance of the fleet. The defences of the enemy formed nearly a right angle, both lines of which extended to the river, and enclosed a sharp bend. The point of attack was the extreme northeastern angle of the enemy’s position.
Several of their pieces had been dismounted at this point by the incessant bombardment of the previous days, while the Federal sharpshooters were able to render dangerous any attempt to work the artillery in position. Two regiments of sharpshooters were detailed to creep up to and lie on the exterior slope of the enemy’s breastworks, while another regiment, each soldier having a handgrenade besides his musket, followed. Another regiment followed with bags filled with cotton, which were to be used to fill up the ditch in front of the breastworks. The remaining regiments of General Weitzel’s brigade succeeded, supported by the brigades of Colonel Kimball and Colonel Morgan. These forces, all under General Weitzel, constituted the right of attack.
On the left General Paine’s division constituted a separate column. The whole command was under General Grover, who planned the attack.
It was expected that General Weitzel’s command would make a lodgment within the enemy’s works, and thus prepare the way for General Paine’s division.
The advance was made about daylight, through a covered way, to within three hundred yards of the enemy’s position; then their progress was retarded by deep gulleys, covered with bush and creeping vines. Under an incessant fire from the enemy, a part of the skirmishers reached the ditch, where they were met with an enfilading fire, and hurled back, while their hand-grenades were caught up by the enemy and thrown back again into the Union ranks. The assaulting column moved on as rapidly as possible, and made several gallant and desperate attempts on the enemy’s works, but found them fully prepared at all points, and every part of their fortifications lined with dense masses of infantry. At length the assaulting columns were compelled to fall back under the deadly fire of the enemy, and the fighting finally ceased at eleven o’clock in the morning. General Banks’s loss was nearly seven hundred in killed and wounded.
Meantime the first parallel encircling the outer line of the rebel defences was pushed forward, and the skirmishers were posted in rifle-pits so near that skirmishes were of constant occurrence at night.
The withdrawal of General Banks’s force from the west side of the Mississippi was followed by great activity on the part of the enemy, for the purpose of recovering the places held by small bodies of Federal troops, and to cause a diversion from Port Hudson. Opelousas was reoccupied by a considerable Confederate force; and the west bank of the Mississippi was lined with squads of the rebels, who fired on every boat which passed. On the 17th of June, an attack was made on the Federal pickets at La Fourche, which was repulsed. On the 23d, Brashear City was captured by a Confederate force under Generals Green and Morton. A camp of contrabands was attacked by the enemy, and large numbers killed. Immense quantities of ammunition, several pieces of artillery, three hundred thousand dollars’ worth of sutler’s goods, sugar, flour, pork, beef, and medical stores, of vast amount, were also captured. On the 28th, an attack was made on Donaldsonville, and the storming party succeeded in
getting into the fort. But the gunboats opened a flanking fire above and below the fort, and drove back the supporting party, so that the enemy broke and fled. Of those who had entered the fort, one hundred and twenty were captured and nearly one hundred killed.
Other movements on the part of the enemy were made at this time, which indicated great activity, and enabled them to destroy much Federal property. No embarrassment however was caused to the position of General Banks. The enemy, in short, recovered the La Fourche, Teche, Attakapas, and Opelousas country, and captured Brashear, with fifteen hundred prisoners, a large number of slaves, and nearly all the confiscated cotton.
After the two attempts to reduce Port Hudson by a land assault, on the 27th of May and the 14th of June, the purpose to make another was given up General Banks, until he had fully invested the place by a series of irresistible approaches. He was thus engaged in pushing forward his works when Vicksburg was surrendered. Information of this surrender was sent to General Banks, and it was the occasion for firing salutes and a general excitement in his camp, which attracted the attention of the enemy, to whom the surrender was communicated. General Gardner, upon receiving the information, sent by flag of truce, about midnight of the 7th, the following note to General Banks:
“H , P H , L ., J 7th, 1863.
“To Major-General B , commanding United States forces near Port Hudson:
“G : Having received information from your troops that Vicksburg has been surrendered, I make this communication to request you to give me the official assurance whether this is true or not, and if true, I ask for a cessation of hostilities, with a view to the consideration of terms for surrendering this position.
“I am, General, very respectfully, Your obedient servant, FRANK GARDNER, Major-General.”
To which General Banks thus replied
“H , D G , }
P H , J 8th, 1863. }
“To Major-General F G , commanding C. S. forces, Port Hudson:
“G : In reply to your communication, dated the 7th instant, by flag of truce, received a few moments since, I have the honor to inform you that I received, yesterday morning, July 7th, at 10.45, by the gunboat General Price, an official despatch from Major-General Ulysses S. Grant, United States Army, whereof the following is a true extract:
“‘H , D T , }
V , J 4th, 1863. }
“‘Major-General N. P. B , commanding Department of the Gulf:
“‘G : The garrison of Vicksburg surrendered this morning. The number of prisoners, as given by the officer, is twenty-seven thousand, field artillery one hundred and twenty-eight pieces, and a large number of siege guns, probably not less than eighty.
“‘Your obedient servant, U. S. Grant, Major-General.’”
“I regret to say, that under present circumstances, I cannot, consistently with my duty, consent to a cessation of hostilities for the purpose you indicate.
Very respectfully, your obedient servant, N. P. BANKS.”
The following further correspondence then took place:
“P H , J 8th, 1863.
“G : I have the honor to acknowledge the receipt of your communication of this date, giving a copy of an official communication from Major-General U. S. Grant, United States Army, announcing the surrender of Vicksburg.
“Having defended this position as long as I deem my duty requires, I am willing to surrender to you, and will appoint a commission of three officers to meet a similar commission appointed by yourself, at nine o ’clock this morning, for the purpose of agreeing upon and drawing up the terms of the surrender, and for that purpose I ask for a cessation of hostilities.
“Will you please to designate a point outside of my breastworks, where the meeting shall be held for this purpose?
“I am, very respectfully, your obedient servant, FRANK GARDNER, Commanding C. S. Forces.”
“H , U. S. F , }
P H , J 8th, 1863. }
“To Major-General F G , commanding Confederate States forces, Port Hudson:
“G : I have the honor to acknowledge the receipt of your communication of this date, stating that you are willing to surrender the garrison under your command to the forces under my command, and that you will appoint a commission of three officers to meet a similar commission appointed by me, at nine o ’clock this morning, for the purpose of agreeing upon and drawing up the terms of the surrender.
“In reply, I have the honor to state that I have designated Brigadier-General Charles P. Stone, Colonel Henry W. Birge, and Lieutenant-Colonel Richard B. Irwin, as the officers to meet the commission appointed by you.
“They will meet your officers at the hour designated, at a point where the flag of truce was received this morning. I will direct that active hostilities shall entirely cease on my part until further notice, for the purpose stated.
“Very respectfully, your most obedient servant,
“N. P. BANKS, Major-General Commanding.”
CAMP SCENES.
ASSORTING THE MAIL.
THE NEWS DEPOT.
The following are the articles of capitulation mutually agreed upon and adopted:
A . 1. Major-General Frank Gardner surrenders to the United States forces under Major-General Banks, the place of Port Hudson and its dependencies, with its garrison, armaments, munitions, public funds, and materials of war, in the condition, as nearly as may be, in which they were at the hour of cessation of hostilities, namely, 6 o’clock A. M., July 8, 1863.
A . 2. The surrender stipulated in article one is qualified by no condition, save that the officers and enlisted men comprising the garrison shall receive the treatment due to prisoners of war, according to the usages of civilized warfare.
A . 3. All private property of officers and enlisted men shall be respected, and left to their respective owners.
A . 4. The position of Port Hudson shall be occupied to-morrow, at 7 o’clock A. M., by the forces of the United States, and its garrison received as prisoners of war by such general officers of the United
States service as may be designated by Major-General Banks, with the ordinary formalities of rendition. The Confederate troops will be drawn up in line, officers in their positions, the right of the line resting on the edge of the prairie south of the railroad depot; the left extending in the direction of the village of Port Hudson. The arms and colors will be piled conveniently, and will be received by the officers of the United States.
A . 5. The sick and wounded of the garrison will be cared for by the authorities of the United States, assisted if desired by either party, by the medical officers of the garrison.
The formal surrender was made on the 9th of July. General Andrews, Chief-of-Staff of General Banks, with Colonel Birge leading his column, followed by two picked regiments from each division, with Holcombe’s and Rowle’s batteries of light artillery, and the gunners of the naval battery, entered the fortifications. The enemy were drawn up in line, with their officers in front of them, on one side of the road, with their backs to the river. The Federal troops were drawn up in two lines on the opposite side of the road, with their officers in front of them. General Gardner then advanced, and offered to surrender his sword with Port Hudson. In appreciation of his bravery, he was desired to retain it. He then said: “General, I will now formally surrender my command to you, and for that purpose will give the order to ground arms.” The order was given, and the arms grounded. The surrender comprised, besides the position, more than six thousand two hundred and thirty-three prisoners, fifty-one pieces of artillery, two steamers, four thousand four hundred pounds of canon powder, five thousand small arms, and one hundred and fifty thousand rounds of ammunition. The loss of General Banks from the twenty-third to the thirtieth of May was about one thousand. The village of Port Hudson consisted of a few houses and a small church, which had been nearly destroyed by the cannonade. The wounded and sick of the garrison suffered most from want of medical stores. The provisions of the garrison were nearly exhausted.
A short period of inactivity succeeded the heavy campaign of General Banks’s army, which culminated in the capture of Port Hudson, on the 9th of July, 1863. But the plans of the commanding officers were maturing for new expeditions, in more remote regions,
where the flag of rebellion was still floating defiantly, and where the machinations of European powers were striving covertly to give aid to the Confederate cause, and to establish an unfriendly Government on the Federal confines, if not on American soil.
Rear-Admiral David D. Porter arrived at New Orleans on the 1st of August, 1863, and resumed command of the gunboats on the Mississippi. About the same time Major-General Franklin, formerly a corps commander in the Army of the Potomac, arrived at the same place, and reported for duty.
A naval expedition to the mouth of the Sabine river, in Texas, was undertaken by General Banks, who dispatched General Franklin with four thousand men in four army transports, to capture the forts at Sabine Pass, at the mouth of the river, which forms the boundary line between Texas and Louisiana. The armed steamers employed were the Clifton, Sachem, Arizona, and Granite City, and the naval forces were commanded by Lieutenant Crocker.
Early on the morning of September 8th, the Clifton stood in the bay and opened on the fort, to which no reply was made. At 9 A. M. the Sachem, Arizona, and Granite City, followed by the transports, stood over the bar, and, with much difficulty, owing to the low water, reached an anchorage about two miles from the fort at 11 A. M. About the middle of the afternoon the Sachem, followed by the Arizona, advanced up the eastern channel to draw the fire of the forts, while the Clifton advanced up the western channel. The Granite City remained to cover the landing of a division of troops under General Weitzel. No reply was made to the fire of the gunboats until they were abreast of the forts, when eight guns opened fire upon them. Three of these were rifled. Almost at the same moment the Clifton and Sachem were struck in their boilers and both vessels enveloped in steam. The Arizona, not having room to pass the Sachem, then backed down the channel until she grounded by the stern, when the ebb-tide caught her bows and swung her across the channel. White flags were raised on the Clifton and Sachem, and within twenty minutes they were taken in tow by the enemy. The naval force of the expedition being thus disabled, the transports moved out of the bay. The Arizona was got afloat during the night, and followed. The expedition then returned to Brashear City. The officers and crews of the Clifton and Sachem, and about ninety sharpshooters who were
on board were captured, and the loss in killed and wounded was about thirty. After remaining at Brashear City some time, the military force moved to Franklin and Vermillionville.
On the 27th of October an expedition under General Banks put to sea from New Orleans. It consisted of about twenty vessels, accompanied by the gunboats Owasco, Virginia, and Monongahela, which sailed to the mouth of the Rio Grande river, the boundary between Texas and Mexico. Brownsville was occupied by Federal troops, which did much to check the designs of the French Emperor. An American army was now placed on the frontier, prepared to check any open demonstration of sympathy between the armies of Davis and Napoleon.
Western Louisiana was again the scene of military operations in the Teche district, where General Washburn’s command was attacked on the 5th of November, and after a severe struggle, he succeeded in beating off the enemy with a loss of one hundred killed and two hundred prisoners. The Federal loss was forty killed.
NAVAL OPERATIONS IN 1863.
The most important operations of the navy during the year were those on the Mississippi river, and before Charleston, which have been already described in connection with army movements.
The work of building vessels for naval purposes was carried on vigorously during the year, and, inclusive of vessels purchased, and those captured from the enemy, fifty-eight vessels, mounting four hundred and fifty-two guns, with a tonnage of fifty thousand tons, were added; while the loss for the same period was thirty-four vessels of about sixteen thousand tons, including the iron-clads Monitor and Weehawken, which foundered in stormy weather. The number of seamen on the register was about thirty-four thousand.
At daylight on January 29, an iron propeller named Princess Royal attempted to enter Charleston harbor, but was captured by the gunboat Unadilla. This was one of the most valuable prizes taken during the war. The cargo would have been of great service to the enemy, who immediately set on foot a daring scheme to recover her. Accordingly, before daylight on the 31st, two rebel rams, the Palmetto State and the Chicora, under Commodore Ingraham, came down the channel, and surprised the smaller vessels of the blockading squadron, which lay close in shore. The Mercedita was the first vessel attacked, which was rendered helpless by the explosion of a 7-inch shell from the Palmetto State in her port boiler, and surrendered. The Keystone State was then attacked by both rams, and made a most gallant defence, but being disabled, she was compelled to pull down her flag, but re-hoisted it when she found the enemy did not discontinue his fire. Other vessels making their appearance, the rams soon after discontinued the attack, and both the disabled Federal vessels were taken in tow by their consorts.
It was claimed by General Beauregard and Flag-officer Ingraham that the blockade had been raised in accordance with the laws of war, as there were no Federal vessels in sight from Charleston at daylight on the 1st of February; and the foreign consular agents in Charleston were induced to indorse this claim, but the assumption remained unnoticed by foreign governments.
On January 30, the Federal gunboat Isaac Smith, Lieutenant Conover, was captured on Stono river, S. C., by masked shore batteries, after losing twenty-four men in killed and wounded.
On the 27th of February, the Montauk monitor destroyed the rebel steamer Nashville, under the guns of Fort McAllister.
On December 17th, the steamer Chesapeake, plying between New York and Portland, was seized on her passage to the latter place, when about twenty miles northeast of Cape Cod, by sixteen of her passengers, who represented themselves as belonging to the Confederate States. The captain was put in irons, one of the engineers killed and thrown overboard, and the first mate wounded. The crew and passengers, with the exception of the first engineer, retained to manage the steamer, were subsequently put ashore in a boat, and the Chesapeake sailed to the eastward. Upon the reception of the news in the United States, a fleet of cruisers started in pursuit, and on the 17th the Chesapeake was captured by the Ella and Anna, in Sambro harbor, Nova Scotia, and, with a portion of her crew, was carried to Halifax and delivered to the authorities. The prisoners were released by a mob, but the Chesapeake was subsequently restored to her American owners by an order of the chief colonial tribunal.
The number of vessels captured by the several squadrons, from the commencement of the war to November 1, 1863, was one thousand and forty-five, valued at thirteen millions of dollars. During the same period the rebels had destroyed or captured one hundred and eightyfour Federal vessels, valued at fifteen millions of dollars.
THE FIELD OF OPERATIONS IN 1864.
At the beginning of the year 1864, the authority of the United States Government—established by the dauntless courage and determined valor of the armies of the Union—extended over a very large portion of the territory which had been controlled by the rebellion. The capture of Vicksburg and Port Hudson had opened the navigation of the Mississippi river. The State of Missouri had been redeemed, and the rebel power had been broken in Arkansas. From Kentucky and Tennessee the rebel flag had been driven out, by the victorious banner of the Republic. In Florida, in the Carolinas, and in Southern Virginia, the arms of the Union had effected a permanent lodgment. The mouth of the Rio Grande had been closed, thus cutting off an important channel of rebel communication with foreign markets, and with disloyal traders at the North. In Louisiana the power of the Government was growing stronger, day by day. Victory, moreover, had strengthened the hands and hearts of the patriots at the North, soldiers as well as civilians. The army and the navy were in excellent condition, and the War Department felt justified in making a reduction of upwards of two millions of dollars, in its estimate of military and naval expenditure for the next year. Thus, in every particular, the condition of the country seemed much improved, while the prospects for the future were full of comfort and promise. Important work yet remained to be done: sacrifices were yet to be made. But the work was enjoined by a sacred sense of duty, and the loyal people of the United Slates were ready to make any and every sacrifice that might be required for its suitable and thorough performance.
The positions of the various armies, at the beginning of 1864, should here be noted. General Meade, commanding the Army of the Potomac, was posted near Culpepper Court House, in Virginia,
whither he had arrived, after a variety of manœuvres, in the latter part of 1863. General Lee confronted him with the finest army of the rebellion. The Union forces occupied Winchester, Martinsburg, and Harper’s Ferry, and held the line of the Baltimore and Ohio railroad, thus blocking all possible advance of the rebels up the Shenandoah valley. A rebel force, however, was in the valley, led on by General Jubal Early, whose headquarters were at Staunton. General Bragg’s rebel forces were massed in the vicinity of Dalton, Georgia, opposed by the Union armies under General Grant, in front of Chattanooga, Tennessee. General Burnside—whose resignation had not yet been given in—was at Knoxville, and not far to the eastward of that point was General Longstreet’s division of the rebel army. General Banks held command in New Orleans, and had detachments of troops in Texas. General Rosecrans was at the head of a small force in Missouri. General Steele commanded the Union troops at Little Rock, in Arkansas. Military fortifications were established, all along the Mississippi river. The United States had about six hundred thousand men in the field: the Confederates about four hundred thousand. General Lee’s forces, in Virginia and North Carolina, numbered at least one hundred and ten thousand. The other great army of the Confederacy was commanded by General J. C. Johnston, whose department included Georgia, Alabama, and Mississippi. The rebel troops at Mobile were commanded by Generals Maury and Clairborne.
The great operations of the year 1864 were, Sherman’s march from Atlanta to Savannah—including, of course, the preliminary manœuvres and battles, which prepared his way—and General Grant’s advance on Richmond, by way of the Wilderness. Before describing these, however, a considerable space must be devoted to miscellaneous operations in various parts of the country.
SHERMAN’S EXPEDITION AGAINST MERIDIAN, MISS.
F 3, 1864.
After participating in the battles around Chattanooga, and raising the siege of Knoxville to relieve General Burnside, General Sherman withdrew to Vicksburg, to take command of an expedition which left that city on the 3rd of February, 1864, and proceeded in the direction of Meridian, in Alabama. The force under General Sherman numbered about thirty thousand men, and consisted of the two corps under General McPherson and General Hurlbut, with sixty pieces of light artillery. After much skirmishing by the way, in which the enemy was constantly overcome. General Sherman reached Meridian on the 7th of February. The object of this expedition was the destruction of several railroads which are specified in the following order, issued after the Union force had been one week in Meridian.
H , D T , } M , Miss., February, 15, 1864. }
1. The destruction of the railroads intersecting at Meridian is of great importance, and should be done most effectually. Every tie and rail for many miles in each direction should be absolutely destroyed or injured, and every bridge and culvert should be completely destroyed. To insure this end, to General Hurlbut is entrusted the destruction east and north, and to General McPherson the roads west and south. The troops should be impressed with the importance of this work, and also that time is material, and therefore it should be begun at once, and prosecuted with all the energy possible. Working parties should be composed of about one-half the command, and they should move by regiments, provided with their arms and haversacks, ready to repel attacks of cavalry. The other half in reserve will be able to watch the enemy retreating eastward.
2. Colonel E. F. Winslow, commanding cavalry, will keep his cavalry in advance of the party working eastward, and will act as though this army were slowly pursuing the enemy.
3. Special instructions will be given as to the general supply train; and the troops now in Meridian will, under proper brigade parties, collect meal, meat and supplies. The destruction of buildings must be deferred till the last moment, when a special detail will be made for that purpose.
By order of W. T. SHERMAN, Major-General commanding.
These directions being faithfully carried out, General Sherman with justice declared that he had made the most complete destruction of railroads ever beheld.
Supplies now beginning to fall short, the Union forces fell back toward Vicksburg, returning by the way of Canton, and reached their original position on the 26th of February.
In this expedition the National loss in killed and wounded amounted to one hundred and seventy men.
GENERAL SMITH’S EXPEDITION FROM MEMPHIS, TENN.
F 11, 1864.
General M. L. Smith, who had been ordered to report to General Sherman at Meridian, had in the mean time, left Memphis on the 11th of February. On the 13th the National forces reached the Tallahatchie, and on the same day crossed the river at New Albany, without encountering any opposition from the enemy. Pushing forward with all possible speed, General Smith encountered the enemy, in force, near Houston. The Unionists, not being strong enough to engage the rebels, then moved eastward, and surprised and entered Okalona. Advancing along the railroad, and tearing up the track as he went, General Smith next reached West Point, having destroyed on the way two thousand bales of cotton, and one million bushels of corn. Two miles north of West Point Station, the enemy was encountered, and a short skirmish ensued, in which the rebels were driven back. The enemy were next discovered to be in strong force in front, holding all the crossings over a swamp to the right of the town, and also on the line of the Octibbieha in front, and that of the Tombigbee river on the left. An attack was necessary; and General Smith, encumbered with pack trains and captured cattle, determined to make his demonstration for battle in front, in order to give his main body and trains an opportunity to fall back on Okalona. This movement was successfully accomplished, notwithstanding that the enemy, under the command of Generals Lee, Forrest and Chalmers, pressed very hard upon the retreating Union line. Subsequently, on the 22nd, General Smith was attacked at Okalona, and defeated with severe loss. That night he retreated, with all possible secrecy and speed. A correspondent thus describes his retreat:
“Picture to yourself, if you can, a living, moving mass of men, negroes, mules, and horses, of four thousand or five thousand, all en masse, literally jammed, huddled, and crowded into the smallest possible space; night setting in; artillery and small arms booming behind us; cavalry all around and ahead, moving on, on, on, over fences, through fields and brush, over hills and across mud-holes, streams, and bridges, and still on, on into the night, until the moon rises on the scene and shows us some of the outlines of this living panorama. I forgot to say that in this crowd were a lot of prisoners, too, once or twice attempting to escape, followed by the swift report of the revolver, once with bitter consequences to the escaping prisoners.”
On the night of the 23d General Smith succeeded in crossing the Tallahatchie at New Albany, and on the 25th, at about noon, his forces reached Memphis, with all their trains and spoils of war. The loss was less than two hundred killed and captured. Thus it happened that the expedition failed to make a junction with General Sherman, at Meridian.
THE RED RIVER EXPEDITION.
M 10-M 16, 1864.
An extensive trade had been carried on for two years between the Confederate States, and the Mexican border. The occupation of Brownsville had checked in a measure this intercourse, and it was determined by the Federal authorities to attempt the capture of Shreveport, an important trading town in the extreme northwestern border of Louisiana, near the boundaries of Arkansas and Texas. This place is at the head of steamboat navigation on the Red river, in the midst of the largest and richest cotton district in the transMississippi department. It was the rebel capital of Louisiana, the headquarters of Gen. Kirby Smith, and the general depot for rebel supplies in that section. The Government desired Shreveport, and the undisturbed possession of the Mississippi, and General Banks was charged with the duty of taking it. His army consisted of a part of the Nineteenth army corps, which he formerly commanded in person; a portion of the Thirteenth army corps, under General Ransom; and a portion of the Sixteenth army corps, under the command of General Smith. A large naval force under Admiral Porter, constituted an important part of the expedition.
The Red river cannot be navigated with safety for any distance above Alexandria by large vessels, except during the months of March and April; and arrangements were accordingly made for the grand naval and army expedition to start as early in the month of March as practicable.
On the second of the month, Admiral Porter concentrated his fleet off the mouth of Red river, awaiting army movements, while some of his gunboats were engaged in destroying bridges on the Atchafalaya and Black rivers, and rebel property collected at Sicily Island. Admiral Porter’s fleet comprised the following vessels:
The Essex, Commander Robert Townsend; Benton, LieutenantCommander James A. Greer; La Fayette, Lieutenant-Commander J. P. Foster; Choctaw, Lieutenant-Commander F. M. Ramsey; Chilicothe, Acting Volunteer Lieutenant S. P. Couthouy; Ozark, Acting Volunteer Lieutenant George W. Browne; Louisville, Lieutenant-Commander E. K. Owen; Carondolet, LieutenantCommander J. G. Mitchell; Eastport, Lieutenant-Commander S. L. Phelps; Pittsburgh, Acting Volunteer Lieutenant W. R. Hoel; Mound City, Acting Volunteer Lieutenant A. R. Langthorne; Osage, Lieutenant-Commander T. O. Selfridge; Neosho, Acting Volunteer Lieutenant Samuel Howard; Ouachita, Lieutenant-Commander Byron Wilson; Fort Hindman, Acting Volunteer Lieutenant John Pearce. And the lighter boats: Lexington, Lieutenant George M. Bache; Cricket, Acting Master H. H. Gorringe; Gazelle, Acting Master Charles Thatcher; Black Hawk, Lieutenant-Commander K. R. Breese.
General A. J. Smith embarked from Vicksburg with his command, of about ten thousand troops, on twenty transports, on the 10th of March. His corps consisted of two divisions from the Sixteenth and two of the Seventeenth army corps. He arrived at the mouth of the Red river on the 12th. On the same day the transports moved up to the Atchafalaya, and the troops were landed at Semmesport, where they disembarked and marched overland, a distance of thirty miles, to Fort De Russy, on the Red river, skirmishing throughout the route with the enemy’s cavalry. On the afternoon of the 14th they were in sight of the fort.
It consisted of two distinct and formidable earthworks, connected by a covered way; the upper work, facing the road, mounted four guns, two field and two siege; the lower work, commanding the river, was a casemated battery of three guns. Only two guns were in position in it, one an eleven-inch columbiad, and an eight-inch smooth bore. On each side were batteries of two guns each, making in all eight siege and two field-pieces. As the line moved up to the edge of the timber, the upper work opened with shell and shrapnel, against which two batteries were brought to bear. The cannonading continued for two hours. A charge was then ordered, and as the men reached the ditch, the garrison surrendered. The Federal loss was four killed and thirty wounded; that of the enemy, five killed and four wounded. The prisoners taken were twenty-four officers and
two hundred men. Considerable ammunition and stores were found, besides a thousand muskets.
The fleet met with many obstructions on its passage up the river, which were removed without serious damage to the vessels; and after constant skirmishing with the river batteries, arrived in front of the fort just before the close of the action, and rendered effective service.
General Smith ordered the works to be destroyed. A portion of his troops then embarked on the transports, and reached Alexandria, one hundred and forty miles from the Mississippi river, on the evening of the 16th. They were followed by the remainder of the forces and the fleet. The enemy retired before the advance, destroying two steamboats and considerable cotton. During the first week, the gunboats rescued upwards of four thousand bales of cotton, and large quantities were brought in by the negroes. The fleet was detained by the low water on the falls above Alexandria, its depth being only six feet, whereas nine feet were required to float the largest gunboats.
On the 20th, the cavalry force under General Lee, attached to the command of General Banks, reached Alexandria, after marching from Franklin across the Teche country. Meantime detachments from General Smith’s command had been sent forward, and captured several small bodies of the enemy.
On the 21st, Natchitoches was taken, with two hundred prisoners and four pieces of artillery. It is about eighty miles from Alexandria.
About four miles from Natchitoches, is a small settlement of dingy houses, called Grand Ecore. General Banks arrived at this place on the 4th of April, and it was then made the headquarters of both the army and navy commanders, and the entire force of the expedition was located in that vicinity.
The army numbered about twenty thousand men. The cavalry was under General Lee, formerly of Grant’s army; the artillery was commanded by Brigadier-General Richard Arnold. General Franklin was second in command. He had one division of his corps with him, under General Emory. That of General Green remained at Alexandria, to garrison the post. General Ransom’s force consisted of two divisions. General Smith’s command remained at Natchitoches. With the rest of the army General Bank’s moved from Natchitoches
