(Special Dispatch to the Chicago Tribune.)
Cairo, Oct. 7.
The gunboats Tyler and Lexington had an active engagement to-day with rebel shore batteries at Iron Banks, three miles this side of Columbus. The boats left here at 9 o’clock for down the river, on a reconnaissance. Arrived at Lucas Bend, they got sight of the rebel gunboat Jeff Davis, which on, chase being given, put about with all possible dispatch for Columbus. The Lexington and Conestoga, while in chase, and throwing shot, were suddenly fired upon from masked batteries on each side of the river. The rebel shots, however, generally fell short. A battery of rifled cannon on the Iron Banks threw balls over and around the gunboats, cutting close, but fortunately doing no damage. Parties on board represent the scene for a time as particularly exciting. Shot and shell were flying about in uncomfortable proximity, making the air ring with music. The guns of our boats were admirably managed, every shot going home, and the shell bursting in air over the rebel quarters, causing a big commotion among them. The boats finally drew off and returned to Cairo. It is not known what damage was done to the rebels, but many of them are thought to have been killed.
A heavy reconnoitering force, under command of Col. Marsh of the 20th Illinois, are out in the direction of Charleston to-day.
Graham, Halliday & Co’s splendid wharf-boat was to-day dropped to the levee landing, and occupied by Government for storage purposes.
A gentleman came into headquarters to day directly from Columbus, who represents the rebels at that place are not less than 40,000 strong, under command of Gen. A. S. Johnson. He says they are making big preparations for strike somewhere.
The 18th and 29th Illinois were to-day reviewed by Generals McClernand and Grant. The Egyptians made a fine appearance.
Chicago Daily Tribune, Chicago, IL