In early August, Sullivan is overcome with bleeding ulcers and writes to Washington:
Hanover August 7th, 1777
Dear General
I Joined my Division Three Days Since but am Exceeding weak & what is Still more afflicting I am Extremely apprehensive that I shall never perfectly Recover Doctr Jones says that my Excessive Fatigue has So much Injured The whole nervous System that nothing but a Long Continuation of the Cold Bath accompanied with a Strict Regimen can Restore me to a perfect State of Health -- all Solid Food & all Drink Except water must be abstained from. Spirits I must never again use but with the greatest Caution (if at all) as he Conceives that the free use of them has in great measure assisted in bringing on my Complaint & if continued will always have the Same Effect. This being the fourth time I have Bled he apprehends That the Bleeding has almost become habitual & will (if not prevented in the above mentioned manner) prove Fatal. I will however do all in my power to perform my Duty in the Division So Long as my new mode of Living will afford me strength sufficient for the purpose --
In August, Sullivan was troubled with insubordination from one of his officers on the one hand, Sullivan's rebuke to the officer was so severe that the officer deserted to the British and complaints from Washington's staff that he wasn't filing proper reports of his troop strength. Meanwhile Sullivan's published remarks vaguely impugned the loyalty of General St. Claire, who had withdrawn his troops from Ticonderoga in July, resulted in a demand from St. Claire for a "clarification" of the strong suggestion that satisfaction would be demanded in the absence of such an explanation -- "it is therefore left to yourself to explain, and that Explanation, whatever it is, I expect you will be good enough to send me by the Bearer. The Gentlemen is one of my Aids de Camp and will wait for it."
The August 22 raid was very much in the Sullivan style -- daring, but energetic, but not successful, with 25 American casualties and over a hundred of the raiders captured. Though Sullivan's troops killed or wounded many of the British troops and Tory sympathizers, troop discipline was poor and many were trapped on the island as a result of confusion over the timing and location of boats meant to carry them back to New Jersey.
Though Washington generally approved of the raid, he consented to Congressional demands that an inquiry into Sullivan's conduct be made, though Washington, needing Sullivan's services in the upcoming confrontation with Howe's army, which was moving toward Philadelphia.
Thursday, September 11, found Sullivan commanding the right wing of Washington's forces. Confused or faulty intelligence resulted in Howe's troops outflanking the Americans, and the collapse of Sullivan's part of the line. Sullivan, unable to rally his men, joined the adjacent division where his horse was shot out from under him and, according to one officer "his uniform bravery, coolness, and intrepidity, both in the heat of battle, rallying and forming the troops when broke from their ranks, appeared to me to be truly consistent with, or rather exceeded, any idea I had ever of the greatest soldier." Others, especially North Carolina's Thomas Burke, accused Sullivan's blundering as being the cause of the loss of the battle. The defeat occurred at a time when Congress was growing impatient with the performance of Washington's army, and sullivan was suspended from the army. For many months afterwards, he found him dealing with depositions and criticism and hearings. From all of these he would be ultimately acquitted...