During this campaign a serious charge was brought against Gregory, which, though soon proved to be wholly unfounded, caused the gallant officer life-long mortification and distress. The circumstances of this unfortunate occurrence were as follows:
Captain Stevens, a British officer in Arnold's corps, while sitting idly by his fire one night, "just for a joke," as he afterwards explained, wrote two notes to General Gregory, which he intended to destroy, as they were simply the product of his own imagination, and were never intended to go out of his hands.
In some unknown way these papers came into the hands of an American officer, who, deeming from their contents that Gregory was a traitor, carried them to headquarters. Their purport being made public, even Gregory's most loyal friends began to look upon him with suspicion and distrust.
The first of these two notes was as follows:
"General Gregory:
"Your well-formed plans of delivering into the hands of the British these people now in your command, gives me much pleasure. Your next, I hope, will mention place of ambuscade, and manner you wish to fall into my hands."
The second note was equally incriminating:
"General Gregory:
"A Mr. Ventriss was last night made prisoner by three or four of your people. I only wish to inform you that Ventriss could not help doing what he did in helping to destroy the logs. I myself delivered him the order from Colonel Simcox."
Great was the excitement and consternation in Gregory's brigade, and indeed throughout the American army when these notes were read. Arnold's treason early in 1780 was still fresh in the minds of all; and it was natural that the accusation now brought against General Gregory should find ready and widespread credence. Gregory was arrested and court-martialed by his own men; but his innocence was soon established, for as soon as Colonel Stevens heard of the disgrace he had unintentionally brought upon an innocent man, he hastened to make amends for his thoughtless act by a full explanation of his part in the affair. Colonel Parker, a British officer and a friend of Stevens, had been informed of the writing of the notes, and he now joined Stevens in furnishing testimony at the trial that fully exonerated the brave general from the hateful charge. But though friends and brother officers now crowded around him with sincere and cordial congratulations upon the happy termination of the affair, and with heartfelt expressions of regret at the unfortunate occurrence, the brave and gallant officer, crushed and almost heart-broken at the readiness with which his men and many of his fellow officers had accepted what seemed proofs of his guilt, never recovered from the hurt caused by the cruel charge. For though he nobly put aside his just resentment, and remained at his post of duty, guarding the Albemarle counties from danger of invasion until the withdrawal of the British troops from southeastern Virginia removed the danger, his life was ever afterwards shadowed by the mortification he had been called upon to undergo.