U. S. GRANT, Lieutenant-General.

Sheridan having been summoned to Washington City, started on the 15th leaving Wright in command.  His army was then at Cedar Creek, some twenty miles south of Winchester.  The next morning while at Front Royal, Sheridan received a dispatch from Wright, saying that a dispatch from Longstreet to Early had been intercepted.  It directed the latter to be ready to move and to crush Sheridan as soon as he, Longstreet, arrived.  On the receipt of this news Sheridan ordered the cavalry up the valley to join Wright.

On the 18th of October Early was ready to move, and during the night succeeded in getting his troops in the rear of our left flank, which fled precipitately and in great confusion down the valley, losing eighteen pieces of artillery and a thousand or more prisoners.  The right under General Getty maintained a firm and steady front, falling back to Middletown where it took a position and made a stand.  The cavalry went to the rear, seized the roads leading to Winchester and held them for the use of our troops in falling back, General Wright having ordered a retreat back to that place.

Sheridan having left Washington on the 18th, reached Winchester that night.  The following morning he started to join his command.  He had scarcely got out of town, when he met his men returning in panic from the front and also heard heavy firing to the south.  He immediately ordered the cavalry at Winchester to be deployed across the valley to stop the stragglers.  Leaving members of his staff to take care of Winchester and the public property there, he set out with a small escort directly for the scene of battle.  As he met the fugitives he ordered them to turn back, reminding them that they were going the wrong way.  His presence soon restored confidence.  Finding themselves worse frightened than hurt the men did halt and turn back.  Many of those who had run ten miles got back in time to redeem their reputation as gallant soldiers before night.

When Sheridan got to the front he found Getty and Custer still holding their ground firmly between the Confederates and our retreating troops.  Everything in the rear was now ordered up.  Sheridan at once proceeded to intrench his position; and he awaited an assault from the enemy.  This was made with vigor, and was directed principally against Emory’s corps, which had sustained the principal loss in the first attack.  By one o’clock the attack was repulsed.  Early was so badly damaged that he seemed disinclined to make another attack, but went to work to intrench himself with a view to holding the position he had already gained.  He thought, no doubt, that Sheridan would be glad enough to leave him unmolested; but in this he was mistaken.