C., and states that they are making rifles and gun carriages up there, and also that they are building a large foundry and blacksmith's shop. As fast as the arms are completed they are sent to Raleigh, North Carolina. "These contrabands state that the rebels succeeded in getting out of the _Modern Greece_ (which vessel was run ashore near New Inlet) six rifled cannon, which, from their description, I should judge to be Whitworth's breech-loading guns; also 500 stand of arms and a large amount of powder and clothing, the last two in a damaged condition. One also states that the steamer _Kate_, before running into this port, was chased by a cruiser and threw overboard 10,000 stand of arms. This he is positive of, as one of the hands on board the _Kate_, a friend of his, told him so. From their accounts I judge that a regular and uninterrupted trade is kept up between Nassau, New Providence, and Shallotte Inlet, N.C., which inlet is about 20 miles to the westward of this place. Schooners are said to arrive here weekly, and, after discharging, take in cotton, turpentine, and rosin, and sail for Nassau with papers purporting that they sailed from the city of Wilmington. I would suggest that some means be taken to stop this trade, and I am, "Very respectfully, "Your obedient servant, "D.L. Braine, "_Lieutenant-Commander_. "Commander G.H. Scott, "_Comdg. U.S.S. 'Maratanza,' "Off Western Bar, Cape Fear River_." "U. S. Gunboat 'Penoboscot' "Off Cape Fear, N.C., "_September 23, 1862_. "Sir: I have to inform you that seven contrabands came to this vessel this morning who gave their own and their masters' names as follows: "William, owned by S.G. Northrop, of Wilmington. "Lewis, owned by Dr. McCrea, of Wilmington. "Ben Greer, owned by P.K. Dickinson, of Wilmington. "George, owned by T.D. Walker, of Wilmington. "Virgil Richardson, owned by James Bradley. "Abraham Richardson, owned by D.A.F. Flemming. "No information of importance was elicited, except that the steamer _Mariner_, loaded with cotton, tobacco, and turpentine, was ready for sea and would make an early attempt to run the blockade of this port. "I am, respectfully, "Your obedient servant, "J.M.B. Clitz, "_Commander_. "Commander G.H. Scott, "_Commanding U.S.S. 'Maratanza,' "And Senior Officer Present_." "From William Robins, contraband, ship carpenter, who has been at work upon one of the rebel gunboats at Wilmington since July: