Fight with the gunboats in James river — a monitor disabled — the fleet Retreats.
On Wednesday three gunboats and an ironclad came up James river as far as Varina, about 13 miles from the city. They came up with the Confederate flag flying on the foremost vessel, and so deceived two of the 26th Va. regiment who were out in a boat fishing that they succeeded in capturing one of them. The men on board called out to the two Confederates to come on the vessel, and at the same time lowered the Confederate and ran up the Yankee flag. One of the men, who could swim, leaped out of the boat, and though fired at succeeded in getting ashore, the other one was captured. The ships lay off Varina all Wednesday night.Yesterday morning the monitor and three gunboats came up to a point near Chaffin's Bluff, where one or two heavy pieces belonging to Major Boggs's battalion had been posted for their reception. As soon as they came within range these guns were fired upon them, and, as was afterwards ascertained, with damaging effect. They drew off after receiving the fire and moved off down the river. They passed City Point at about 11 o'clock, and an officer, who was there at the time and saw them, says that the monitor was very materially injured, three shots having passed entirely through her, disabling her machinery, and requiring her to be towed off by the gunboats. As they passed the Point the three gunboats were abreast, and the two outside once were towing the monitor.
One of the shots which struck the monitor passed through her engine-house, and it was this that rendered her incapable of moving off without assistance. We understand that on Wednesday night two torpedoes that had been placed in the channel exploded, but the explosion took place before the boats had approached sufficiently near to receive any injury.