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Beaty enlisted from Cincinnati on June 7, 1863 for a three-year term of service in the Union Army; he was among a group of men recruited for a Massachusetts a regiment. He joined as a Private but was promoted to Sergeant only two days later. He was placed in charge of a squad of forty-seven other recruits and ordered to report to Columbus, Ohio, from where they would be sent to Boston. Upon arriving in Columbus on June 15, however, they learned that the Massachusetts regiments were full and unable to accept their service. The Governor of Ohio, immediately requested permission from the Department of War to form an Ohio regiment of African Americans. Permission was granted, and on June 17, Beaty and his squad became the first members of the 127th Ohio Volunteer Infantry, later re-designated the 5th United States Colored Troops.
By the Battle of Chaffin's Farm on September 29, 1864, Beaty had risen to the rank of First Sergeant in Company G. His regiment was among a division of black troops assigned to attack the center of the Confederate defenses at New Market Heights. The defenses consisted of two lines of abatis and one line of palisades. The attack was met with intense Confederate fire and was turned back after reaching a line of abatis. During the retreat, Company G's color bearer was killed; Beaty returned through about 600 yards of enemy fire to retrieve the flag and return it to the company lines. The regiment had suffered severe casualties in the failed charge. Of Company G's eight officers and eighty-three enlisted men who entered the battle, only sixteen enlisted men, including Beaty, survived the attack unwounded.

With no officers remaining, Beaty took command of the company and led it through a second charge at the Confederate lines. The second attack successfully drove the Confederates from their fortified positions, at the cost of three more men from Company G. By the end of the battle, over fifty percent of the black division had been killed, captured, or wounded. For his actions, Beaty was commended on the battlefield by General Benjamn Butler and seven months later, on April 6, 1865, awarded the Medal of Honor.
The Butler Medal was solid silver, suspended from a red, white, and blue ribbon meant to be worn around the neck. Attached to the ribbon was a wreath reading "Army of the James". The front of the medal depicts African American troops moving forward in battle, below an inscription in Latin which reads, Ferro iis libertas perveniet: "Freedom Will be Theirs by the Sword."
