Unknown to Brigadier General Anderson, the Union Regiment was part of a larger force that was occupying the town of Okonoko. At the sound of the artillery, the Federals in Okonoko formed into columns and crossed the Potomac into Maryland. Crossing the Chesapeake and Ohio Canal, the Union force under command of Colonel Samuel Dunning took a position on a hill at the Ambrose Farm. They were eventually joined by their pickets from the 13th Indiana.
Anderson's infantry was not far behind the 13th Indiana, with his artillery having limbered and joined the pursuit. Anderson's men forded the Potomac and marched along a wooded section of road between the Potomac and canal. When they rounded the last curve before the canal, they came under fire by Capt. Phillip Daum's Battery "A," West Virginia Light Artillery, which was on Ambrose Hill. The Confederates lost their first casualties while crossing the bridge over the canal.
Anderson got his command across the canal and was able to deploy with his batteries, which began returning fire. His infantry then advanced, but the 1st Tennessee halted and took cover, leaving a gap in the center of the line. Anderson's men were better armed than their Federal counterparts and were able to open fire on the enemy first. With the 1st Tennessee failing to come up, however, four Federal regiments were firing in to the 7th and 14th Tennessee, while Captain Daum switched to canister with deadly effect.
Anderson's line was forced to retreat. One of Ashby's Cavalry companies (Company "C," under Captain Meyers), entered the canal and lost some men to artillery fire while trying to retreat. One of the Confederate artillery pieces also entered the canal, with losing several of its men as they attempted to extricate it. In the end, Anderson's men were forced to retreat back to Lowell's Cross Roads for the night.
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