ORDNANCE OFFICE, Vicksburg, Miss., September 12, 1862.

Colonel GORGAS.

SIR: The fact of the loss of the steamer Fair Play, with Government arms and ammunition on board, has doubtless been reported to you.

Upon the requisition of Colonel Kennard the brigade quartermaster was ordered by Brig. Gen. M. L. Smith to place the Fair Play at his disposal to carry the quartermaster's and ordnance stores then here to Milliken's Bend. The Fair Play was loaded; proceeded to Milliken's Bend; the stores, comprising 2,000 Enfield rifles, about 200,000 rounds of ammunition for small-arms; accouterments and equipments; a section of a mountain artillery battery, with ammunition, artillery harness, &c.; also quartermaster's stores. These were safely disembarked, transported to Monroe, and are now, I presume, in the hands of troops.

Upon the evening of August 17 the Fair Play again left Vicksburg, with a cargo of arms and ammunition. Reached Milliken's Bend about 2.30 a.m. of the 18th and was tied up to the shore. Major Govan and Colonel Kennard both went upon the boat about an hour after the boat landed, all being asleep or on shore except the watchman. The enemy's boats appeared; alarm was given; the boat was hastily abandoned, and, its cargo intact, taken possession of by the enemy.

These are the circumstances as they have been communicated to me. What measures, if any, were taken to prevent a surprise I do not know. The point selected for the landing of the stores was an eligible one, and I think that if proper vigilance had been exercised by the troops then in the neighborhood of Milliken's Bend no surprise could have been apprehended.

M. McDONALD,
Captain and Ordnance Officer Third Brigade.