O.R.-- SERIES I--VOLUME XVI/1 [S# 22] OCTOBER 18, 1862.--Action at Lexington, Ky. No. 2.--Report of Maj. Charles B. Seidel, Third Ohio Cavalry, of skirmish Lexington. DANVILLE, October 19, 1862. SIR: In compliance to orders I received from your headquarters to go to Camp Dick Robinson and take charge of the provisions left there by the rebel forces I left camp on the 16th of October at 2 p.m. and arrived at Camp Dick Robinson at 5 p.m., finding Colonel Hoskins in charge of those stores, consisting of 2,600 barrels of pork and 2,000 bushels of wheat. Went into camp at Dick Robinson with intention to return the following morning to Danville. At 11 o'clock of same night I received a message from Colonel Hoskins of the approach of General Morgan with 500 men strong toward Hickman Bridge with intention to burn said bridge, and recommending one battalion of my forces to be immediately dispatched to Hickman Bridge to prevent it from being burned by General Morgan's forces. This I complied with, by sending one battalion of the Fourth Ohio Volunteer Cavalry under command of Captain Robie. The next morning (October 17) at 5 o'clock I started with the balance of my command, consisting of one battalion Third Ohio Volunteer Cavalry, to join Captain Robie at said bridge. On my arrival here I learned that Captain Gotwald, commanding four companies of Fourth Ohio Volunteer Cavalry, had left Nicholasville for Lexington to drive a portion of Morgan's cavalry forces from that vicinity to prevent their pillage and burning of bridges. I then, knowing that Captain Gotwald could not accomplish his object with the force under his command, went with all the force under my command, numbering in all 260 men, to re-enforce him, which I accomplished by 3 o'clock of same day. Finding Captain Gotwald with his force stationed in town, I then went into camp 1 ½ miles from Lexington on the Richmond pike. At 1` o'clock the same night two citizens living about 7 miles from Lexington came in with the following statement, viz: Morgan's forces of about 500 or 600 men were advancing on the Richmond pike. I immediately sent out a scouting party of 22 men, under command of Lieutenant Hall, Company K, Third Ohio Volunteer Cavalry, to procure all possible information. At about 3 o'clock 1 corporal and 2 privates returned with 2 rebel prisoners in charge, captured about 5 miles from Lexington on the Richmond pike. The balance of the scouting party marched on. On questioning said prisoners I became satisfied that heavy force was coming upon us. I therefore called out my command immediately and formed in line, when we were attacked by General Morgan's forces of about 3,000 strong and six pieces of artillery pouring in most deadly volleys of musketry and grape on all sides. My command most manfully and gallantly returned their fire and fought them hand to hand until overpowered by an overwhelming force, when we were compelled to surrender. Our loss was 4 killed and 24 wounded. The loss of the enemy 1 was unable to ascertain, but saw 3 wagons of killed and wounded leave the battle ground. Major Morgan, of General Morgan's cavalry, was mortally wounded. The scouting party have not been heard from. As a large rebel force left the scene of action in pursuit of them fears are entertained that all have been captured. Much credit is due to Captain Robie, of the Fourth Ohio Volunteer Cavalry, for his cool and gallant behavior during the fight. Capt. P. H. Warner, Company D; Lieut. H. Hamilton, Company A, and Lieut. W. E. Crane, Company C, [Fourth] Ohio Volunteer Cavalry, having left the command on the evening previous without permission and remained in town all night, and have not reported themselves yet. The greatest credit is due to all officers and men. Most respectfully, your obedient servant, CHAS. B. SEIDEL, Major, Commanding Third Ohio Volunteer Cavalry. Colonel ZAHM. [Indorsement. ] Respectfully forwarded, with the addition that the four companies of the Fourth Ohio Volunteer Cavalry stationed at Lexington, under command of Captain Gotwald, have surrendered likewise. Have had no official reports from him. LEWIS ZAHM, Colonel, Commanding Second Cavalry Brigade.