Some time after the retreat from Canada, charges of misconduct and dishonesty, growing chiefly out of his seizure from merchants in Montreal of goods for the use of his troops, were brought against him; these charges were tardily investigated by the Board of War, which in a report made on the 23rd of May 1777, and confirmed by Congress, declared that his "character and conduct" had been "cruelly and groundlessly aspersed." Having constructed a flotilla on Lake Champlain, Arnold engaged a greatly superior British fleet near Valcour Island (October 11, 1776), and after inflicting severe loss on the enemy, made his escape under cover of night. Two days later he was overtaken by the British fleet, which however he, with only one war-vessel, and that crippled, delayed long enough to enable his other vessels to make good their escape, fighting with desperate valour and finally running his own ship aground and escaping to Crown Point. The engagement of the 11th was the first between British and American fleets. Arnold's brilliant exploits had drawn attention to him as one of the most promising of the Continental officers, and had won for him the friendship of Washington. Nevertheless, when in February 1777 Congress created five new major-generals, Arnold, although the ranking brigadier, was passed over, partly at least for sectional reasons--Connecticut had already two major-generals--in favour of his juniors. At this time it was only Washington's urgent persuasion that prevented Arnold from leaving the service. Two months later while he was at New Haven, Governor Tryon's descent on Danbury took place; and Arnold, who took command of the militia after the death of General Wooster, attacked the British with such vigour at Ridgefield (April 27, 1777) that they escaped to their ships with difficulty. In recognition of this service Arnold was now commissioned major-general (his commission dating from 17th February) but without his former relative rank. After serving in New Jersey with Washington, he joined General Philip Schuyler in the Northern Department, and in August 1777 proceeded up the Mohawk Valley against Colonel St Leger, and raised the siege of Fort Stanwix (or Schuyler). Subsequently, after Gates had superseded Schuyler (August 19), Arnold commanded the American left wing in the first battle of Saratoga (September 19, 1777). His ill-treatment at the hands of General Gates, whose jealousy had been aroused, led to a quarrel which terminated in Arnold being relieved of command. He remained with the army, however, at the urgent request of his brother officers, and although nominally without command served brilliantly in the second battle of Saratoga (October 7, 1777), during which he was seriously wounded. For his services he was thanked by Congress, and received a new commission giving him at last his proper relative rank.