From a 2005, North Carolina Historic Sites News Release "Help Bring Home Brunswick Town/Ft. Anderson State Historic Site Flag."
The Confederate flag that flew over Fort Anderson on the Cape Fear River south of Wilmington.has been located and the staff at the site is seeking donations to purchase it. It is currently owned by a dealer and described as being in excellent condition and authenticated. The dealer is asking $40,000 for it.
Chris Fonvielle in his book Fort Anderson: Battle for Wilmington says that Federal troops found it rolled up after falling off a wagon during the hasty retreat. A soldier from Co. A, 140th Indiana found it and turned it over to the regiment's commander, Col. Thomas J. Brady.
Four weeks later, Brady presented it to Indiana Governor Oliver P. Morton at a ceremony in front of the National Hotel in Washington, D.C.. Abraham Lincoln was also at that ceremony and reviewed the 140th Indiana.
This ceremony took place on March 17, 1865, the same day that John Wilkes Booth planned to kidnap Lincoln on his way to Campbell Hospital where the president was originally going until the presentation and review happened.
The site now has the flag.