August 4th.-10.45 p.m.

From the statements made by yourself and General Schofield to-day, my decision is, that he ranks you as a major-general, being of the same date of present commission, by reason of his previous superior rank as brigadier-general. The movements of to-morrow are so important that the orders of the superior on that flank must be regarded as military orders, and not in the nature of cooperation. I did hope that there would be no necessity for my making this decision; but it is better for all parties interested that no question of rank should occur in actual battle. The Sandtown road, and the railroad, if possible, must be gained to-morrow, if it costs half your command. I regard the loss of time this afternoon as equal to the loss of two thousand men.

I also communicated the substance of this to General Thomas, to whose army Palmer's corps belonged, who replied on the 5th:

I regret to hear that Palmer has taken the course he has, and I know that he intends to offer his resignation as soon as he can properly do so. I recommend that his application be granted.

And on the 5th I again wrote to General Palmer, arguing the point with him, advising him, as a friend, not to resign at that crisis lest his motives might be misconstrued, and because it might damage his future career in civil life; but, at the same time, I felt it my duty to say to him that the operations on that flank, during the 4th and 5th, had not been satisfactory—not imputing to him, however, any want of energy or skill, but insisting that "the events did not keep pace with my desires." General Schofield had reported to me that night:

I am compelled to acknowledge that I have totally failed to make any aggressive movement with the Fourteenth Corps. I have ordered General Johnson's division to replace General Hascall's this evening, and I propose to-morrow to take my own troops (Twenty-third Corps) to the right, and try to recover what has been lost by two days' delay. The force may likely be too small.

I sanctioned the movement, and ordered two of Palmers divisions —Davis's and Baird's—to follow en echelon in support of Schofield, and summoned General Palmer to meet me in person: He came on the 6th to my headquarters, and insisted on his resignation being accepted, for which formal act I referred him to General Thomas. He then rode to General Thomas's camp, where he made a written resignation of his office as commander of the Fourteenth Corps, and was granted the usual leave of absence to go to his home in Illinois, there to await further orders. General Thomas recommended that the resignation be accepted; that Johnson, the senior division commander of the corps, should be ordered back to Nashville as chief of cavalry, and that Brigadier-General Jefferson C. Davis, the next in order, should be promoted major general, and assigned to command the corps. These changes had to be referred to the President, in Washington, and were, in due time, approved and executed; and thenceforward I had no reason to complain of the slowness or inactivity of that splendid corps. It had been originally formed by General George H. Thomas, had been commanded by him in person, and had imbibed some what his personal character, viz., steadiness, good order, and deliberation nothing hasty or rash, but always safe, "slow, and sure." On August 7th I telegraphed to General Halleck:

Have received to-day the dispatches of the Secretary of War and of General Grant, which are very satisfactory. We keep hammering away all the time, and there is no peace, inside or outside of Atlanta. To-day General Schofield got round the line which was assaulted yesterday by General Reilly's brigade, turned it and gained the ground where the assault had been made, and got possession of all our dead and wounded. He continued to press on that flank, and brought on a noisy but not a bloody battle. He drove the enemy behind his main breastworks, which cover the railroad from Atlanta to East Point, and captured a good many of the skirmishers, who are of his best troops—for the militia hug the breastworks close. I do not deem it prudent to extend any more to the right, but will push forward daily by parallels, and make the inside of Atlanta too hot to be endured. I have sent back to Chattanooga for two thirty-pound Parrotts, with which we can pick out almost any house in town. I am too impatient for a siege, and don't know but this is as good a place to fight it out on, as farther inland. One thing is certain, whether we get inside of Atlanta or not, it will be a used-up community when we are done with it.

In Schofield's extension on the 5th, General Reilly's brigade had struck an outwork, which he promptly attacked, but, as usual, got entangled in the trees and bushes which had been felled, and lost about five hundred men, in killed and wounded; but, as above reported, this outwork was found abandoned the next day, and we could see from it that the rebels were extending their lines, parallel with the railroad, about as fast as we could add to our line of investment. On the 10th of August the Parrott thirty-pounders were received and placed in Position; for a couple of days we kept up a sharp fire from all our batteries converging on Atlanta, and at every available point we advanced our infantry-lines, thereby shortening and strengthening the investment; but I was not willing to order a direct assault, unless some accident or positive neglect on the part of our antagonist should reveal an opening. However, it was manifest that no such opening was intended by Hood, who felt secure behind his strong defenses. He had repelled our cavalry attacks on his railroad, and had damaged us seriously thereby, so I expected that he would attempt the same game against our rear. Therefore I made extraordinary exertions to recompose our cavalry divisions, which were so essential, both for defense and offense. Kilpatrick was given that on our right rear, in support of Schofield's exposed flank; Garrard retained that on our general left; and McCook's division was held somewhat in reserve, about Marietta and the railroad. On the 10th, having occasion to telegraph to General Grant, then in Washington, I used this language:

Since July 28th Hood has not attempted to meet us outside his parapets. In order to possess and destroy effectually his communications, I may have to leave a corps at the railroad-bridge, well intrenched, and cut loose with the balance to make a circle of desolation around Atlanta. I do not propose to assault the works, which are too strong, nor to proceed by regular approaches. I have lost a good many regiments, and will lose more, by the expiration of service; and this is the only reason why I want reenforcements. We have killed, crippled, and captured more of the enemy than we have lost by his acts.