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* bath heard, and in his conscience believes, and hath confessed to be true, and the party

proponent doth allege and propound of any other time, place, person, or thing, as shall appear from the proof to be made in this cause, and everything in this and the subsequent articles of this allegation contained jointly and severally.

20. That, after the arrival of the steamship Oreto at Nassau aforesaid, neither the said James Alexander Duguid, nor any person exercising anthority over the said steamship Oreto, without the leave or license of Her Majesty for that purpose first had and obtained, attempted to equip, furnish, and fit out the said steamship Oreto, with intent that the said steamship Oreto should be employed in the service of certain persons exercising, or claiming to exercise, the powers of government in certain States claiming to be designated and known as the Confederated States of America, to cruise and commit hostilities against the citizens of the United States of America, Her Most Gracious Majesty the Queen being at the time at peace with the said United States, as in the second position of the article or libel given in and admitted in this cause, on the part and behalf of our said Lady the Queen, is falsely alleged and pleaded ; on the contrary, the party proponent doth allege that the steamship Oreto and her fittings and equipments were, since her arrival and up to the time of her seizure by the said Henry Dernis Hickley, under the sole control and management of him, the said James Alexander Duguid, and none other, and that no act or deed or thing done or committed on board the said steamship after her said arrival, as aforesaid, was with such unlawful intent as would make the said steamship liable to forfeiture for breach of some or one of the provisions of the statute in the first article of the said libel pleaded. And this was and is true, public, and notorious, and the party proponent doth allege and propound as before.

That the said steamship or vessel Oreto was, before she sailed on the voyage from the port of Liverpool to this port of Nassau, lying in the river Mersey, and during all tbat time vessels of war in the navy of Her Majesty the Queen frequently passed and repassed the said steamship; and the said steamship was at all times, both in dock and in the said river, in a conspicuous and public position, without having been in any manner seized, arrested, or subjected to detention or scrutiny; and the said ship quitted the port of Liverpool aforesaid in the open day, and without any manner of laste or secrecy. And that the said James Alexander Duguid, the master, while the said ship was lying in the Mersey, with all her crew on board, waiting instructions from the owner, directed the then mate to employ the crew during their leisure hours in doing ordinary ship's work, fitting gear, strapping blocks, &c., and during such last-mentioned time, as well as after the said ship sailed on her voyage aforesaid, certain spare blocks which were then on board, and which were intended solely for the use of the ship as part and parcel of her rigging, and not in any way whatever as blocks for gun-tackles, or as the part of the furniture of guns, were strapped by the said crew; and the said blocks were never known or called gun-tackle blocks” until a certain Edward Jones, a man of infamous and abandoned character, who had been shipped on board in the capacity of boatswain, called them “gun-tackle blocks," and then told certain of the crew of the said ship that the blocks were gun-tackle blocks. And this proponent further propounds that neither the said James Alexander Duguid, nor any person whomsoever having authority over the said steamship during the time she was at this port of Nassau, ever gave any orders or directions to strap blocks as gun-tackle blocks, or to strap any blocks Whatever. But any blocks which may have been strapped on board the said ship was done by the seamen of the Oreto in their ordinary avocations, as is always done on board, and not for the purpose of fitting the Oreto as a vessel of war, for the purpose of cruising or committing hostilities; and the said proponent doth further propound that the said Jones, in calling the blocks "gun-tackle blocks,” well knew that they were blocks intended simply for the use of the ship; but he having been disrated on board by the said James Alexander Duguid for incapacity and general bad conduct, refused to work, and endeavored likewise to prejudice the crew against the said James Alex

ander Dnguid, and to cause it to be believed throughout the ship that the Oreto [70] was intended as a *cruiser; and this was and is true, and the party proponent

doth allege and propound as before. And the said Bruce Lockhart Barnside lastly alleged that no faith or credit is due or ought to be given to the sayings or depositions of Charles Ward, a witness produced, sword, and examined in this cause on the libel given in and admitted on the part and behalf of the other party in this cause ; for the party proponent doth allege and propound that the said Charles Ward is a man of abandoned character, and is actuated by malicious and vindictive feelings against the said James Alexander Duguid, and has sworn falsely, and is not to be believed on his oath, and who, for the purpose of carrying out an avowed intention of doing an injury to the said James Alexander Duguid, has, of his own malicious intent, in various and many particulars, detailed and sworn to occurrences which he, the said Charles Ward, has fabricated for such malicions purpose; and this was and is true, public, and notorious; and the party proponent doth allege and propound, as before, that all and singular the premises were and are true. (Signed)

BURNSIDE, Counsel.

(Inclosnre 8 in No. 37.)

Proclamation by Gorernor Bayley.

BAHAMA ISLANDS.

By his Excellency Charles John Bayley, esq., governor and commander-in-chief in and

over the said islands, chancellor, vice-adnjiral, and ordinary of the same.

1 Proclamation. Whereas his Græce the Duke of Newcastle, Her Majesty's principal secretary of state for the colonies, has transmitted for my guidance the following copy of a dispatch fronı the Right Honorable Earl Russell, Her Majesty's principal secretary of state for foreign affairs :

“FOREIGN OFFICE, January 31, 1-62. “MY LORD DUKE: Her Majesty being fully determined to observe the duties of neutrality during the existing hostilities between the United States and the States calling themselves the Confederate States of America, and being, moreover, resolved to prevent, as far as possible, the use of Her Majesty's harbors, ports, and coasts, and the waters within Her Majesty's territorial jurisdiction, in aid of the warlike purposes of either belligerent, has commanded me to communicate to your grace, for your guidance, the following rules, which are to be treated and enforced as Her Majesty's orders and directions.

“Her Majesty is pleased further to command that these rules shall be put in force in the United Kingdom and in the Channel Islands on and after Thursday, the 6th day of February next, and .in Her Majesty's territories and possessions beyond the seas six days after the day when the governor or other chief authority of each of such territories or possessions, respectively, shall have notified and published the same, stating in such notification that the said rules are to be obeyed by all persons within the same territories and possessions.

“1. During the continuance of the present hostilities between the Government of the United States of North America and the States calling themselves the Confederate States of America, or until Her Majesty shall otherwise order, no ships of war or privateers belonging to either of the belligerents shall be permitted to enter or remain in the port of Nassau, or in any other port, roadstead, or waters of the Bahama Islands, except by special leave of the governor of the Bahama Islands, or in case of stress of weather. If any such vessel should enter any such port, roadstead, or waters, by special leave or under stress of weather, the authorities of the place shall require her to put to sea as soon as possible, without permitting her to take in any supplies beyond what may be necessary for her immediate use.

“If, at the time when this order is first notified in the Bahama Islands, there shall be any such vessel already within any port, roadstead, or waters of those islands, the governor shall give notice to such vessel to depart, and shall require ber to put to sea within such time as he shall, under the circumstances, consider proper and reasonable.

If there should then be ships of war or privateers belonging to both the said bel[71] ligerents * within the territorial jurisdiction of Her Majesty, in or near the said port,

roadstead, or waters, the governor shall fix the order of time in which such vessels shall depart. No such vessel of either belligerent shall be permitted to put to sea until after the expiration of at least twenty-four hours from the time when the last preceding vessel of the other belligerent (whether the same shall be it slip of war, or privateer, or merchant-ship) which shall have left the same port, roaustead, or waters adjacent thereto, shall have passed beyond the territorial jurisdictiou of Her Majesty.

*2. During the continuation of the present hostilities between the Government of the United States of North America and the States calling themselves the Confederate States of America, all ships of war and privateers of either belligerent are prohibited from making use of any port or roadstead in the United Kingdom of Great Britain and Ireland, or in the Channel Islands, or in any of Her Majesty's colonies, or foreign possessions, or dependencies, or in any waters subject to the territorial jurisdiction of the British Crown, as a station or place of resort for any warlike purpose, or for the purpose of obtaining any facilities of warlike equipment; and no ship of war or privateer of either belligerent shall hereafter be permitted to sail out of or leave any port, roadstead, or waters subject to British jurisdiction, from which any vessel of the other belligerent (whether the same shall be a ship of war, or privateer, or a merchant-ship) shall have previously departed, until after the expiration of at least twenty-four hours from the departure of such last-mentioned vessel beyond the territorial jurisdiction of Her Majesty.

“If any ship of war or privateer of either belligerent shall, after the time when this order shall be first notified and put in force in the United Kingdom and in the Channel Islands, and in the several colonies, and foreign possessions, and dependencies of Her

Majesty respectively, enter any port, roadstead, or waters belonging to Her Majesty, either in the United Kingdom or in the Channel Islands, or in any of Her Majesty's colonies, or foreign possessions, or dependencies, such vessel shall be required to depart and to put to sea within twenty-four hours after her entrance into such port, roadstead, or waters, except in case of stress of weather, or of her requiring provisions or things necessary for the subsistence of her crew, or repairs, in either of which cases the authorities of the port, or of the nearest port, (as the case may be,) shall require her to put to sea as soon as possible after the expiration of such period of twenty-four hours, without permitting her to take in supplies beyond what may be necessary for her immediate use; and no such vessel which may have been allowed to remain within British waters for the purpose of repair, shall continue in any such port, roadstead, or waters, for a longer period than twenty-four hours after her necessary repairs shall have been completed: Provided, nevertheless, that in all cases in which there shall be any vessels (whether ships of war, privateers, or merchant ships) of both the said belligerent parties in the same port, roadstead, or waters within the territorial jurisdiction of Her Majesty, there shall be an interval of not less than twenty-four hours between the departure therefrom of any such vessel (whether a ship of war, a privateer, or a merchant-ship) of the one belligerent, and the subsequent departure therefrom of any ship of war or privateer of the other belligerent; and the times hereby limited for the departure of such ships of war and privateers respectively shall always,fin case of necessity, be extended so far as may be requisite for giving effect to this proviso, but not further or otherwise.

* 4. No ship of war or privateer of either belligerent shall hereafter be permitted, while in any port, roadstead, or waters subject to the territorial jurisdiction of Her Majesty, to take in any supplies except provisions and such other things as may be requisite for the subsistence of her crew, and except so much coal only as may be suficient to carry such vessel to the nearest port of her own country, or to some nearer destination; and no coal shall be again supplied to any such ship of war or privateer, in the same or any other port, roadstead, or waters subject to the territorial jurisdiction or Her Majesty, without special permission, until after the expiration of three months from the time when such coal may have been last supplied to her within British waters as aforesaid.

“I have, &c.,
(Signed)

“RUSSELL. ** Ilis Grace the DUKE OF NEWCASTLE, SC., Sc., Sc.”

Now, therefore, I do hereby issue this my proclamation notifying and publishing the foregoing dispatch for general information and the guidance of all and every persons and person whom it may in anywise concern or atfect, to the intent that they may

respectively take notice of the same and govern themselves accordingly. [79] Given under my hand and the seal of the said Bahama Islands, at Nassau, in

the island of New Providence, the eleventh day of March, in the year of our Lord one thousand eight hundred and sixty-two, and in the twenty-fifth year of Her Majesty's reign.

By his excellency's command, (Sigued)

C. R. NESBITT,

Colonial Secretary. God save the Queen!

JI: closure 9 in No. 37.)

Extract from the Vassau Guardian of January 28, 1863,
The Confederate States steamer of war Florida, Lieutenant J. N. Maffit comma

manding, arrived bere on Monday last from Havana. Having obtained permission to remain in port tweuty-four hours, she sailed again at 11 o'clock yesterday morning.

We understand that the Florida sailed out of Mobile bay on the morning of the 16th instant, and was immediately chased by eleven Federal ships of war and gun-boats, the cbase lasting twenty-four hours.

We are also informed the Florida captured, on the 20th instant, the American brig Estelle, bound from Santa Cruz, Cuba, to Boston, with a valuable cargo. The vessel was quite new, and, with her cargo, was valued at $140,000.

On the 22d 'she captured the American brig Windward, bound from Matanzas to Portland, Maine ; and on the same day the brig Corvis Anné, bound from Philadelphia to Matanzas.

H. Ex. 182_20

No. 38.

dr. Peel to Mr. Hammond.

TREASURY CHAMBERS,

September 17, 1862. (Received September 18.) SIR: I am directed by the lords commissioners of Her Majesty's treasury to transmit herewith, for the information of Earl Russell, with reference to your letter of the 4th instant, copy of a report from the commissioners of customs of the 12th instant, containing further explanations in reference to the ship Oreto, fitted out at Liverpool.

I am, &c.,
(Signed)

F. PEEL.

[Inclosure in No. 38.)

9

The commissioners of customs to the lords commissioners of the treasury.

Custom-HOUSE, September 12, 1862. Your lordships having referred to us the annexed letter from Mr. Layard, transmitting,

by desire of Earl Russell, copy of a memorandum by Her Majesty's advoFurther report from cate-general, stating that the attorney general and he have perused the ceedings at Liverpool inclosures in your lordships' letter to Mr. Hammond of the 26th ultimo,

and that they are of opinion that, under the circumstances therein stated, it will not be necessary to send a custom-house officer to Nassau to give evidence in the case of the vessel Oreto, which formed the subject of our report to your lordships of the 25th ultimo, and requesting, as it is observed in the memorandum, that the papers inclosed in your lordships' letter are silent as to the various other suspicious circnmstances in regard to that vessel, that we may be acquainted therewith, in order that we may report such observations as we may have to otfer.

We have accordingly to report that, upon receipt of your lordships' reference, we again communicated with our collector at Liverpool, from which port the vessel cleared out, and that officer has transmitted to us a report from the customs surveyor, who was specially appointed to watch the Oreto while she was being fitted out, from which it appears that there was no attempt on the part of the builders to disguise what was most apparrent, viz: that she was intended for a vessel of war; that she was pierced

for eight guns; and her general appearance denoted that she was intend d for [73] the navy of some *government; that it was currently reported and stated by

her builders that she was intended for the government of the King of Italy; and that she sailed from Liverpool under the command of a Mr. Duguid, who is a resident of that place, for Palermo. The surveyor has further reported that Mr. Duguid has now returned to Liverpool from Nassau, where it is stated that the Oreto has been released, and that he has been informed Mr. Duguid was not aware of the actual des. tivation of the vessel when she left Liverpool; but that, after the ship had proceeded to sea, sealed orders were given to him by the supercargo, by which he was directed to proceed to Nassau, and that these orders were carried out by him. (Signed)

F. GOULBURN.
W. R. GREY.

No. 39.

Mr. Stuart to Earl Russell.

Vessel

WASHINGTON, September 24, 1862. (Received October 10.) MY LORD: The steamship Oreto, which has formed the subject of so

much correspondence between your lordship and Mr. Adams, Motule september, appears to have at length succeeded in entering the port of

Mobile, having been mistaken for a British man-of-war by the senior naval officer in charge of the blockade of that port.

The inclosed extract from the National Intelligencer contains the ex

4, 1862

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planation given by Commander Preble of his conduct, the report of
Admiral Farragut thereupon, and an order from the Secretary of the
Navy dismissing Commander Preble from the naval service. This last
act is a startling exercise of power on the part of the Executive Gov.
ernment, not having been preceded by any court-martial or formal
inquiry, by which Commander Preble might have had an opportunity
of justifying his conduct.

I have, &c.,
(Signed)

W. STUART.

(Inclosure in No. 39.)

[Extract from the National Intelligencer of September 22, 1862. ]

Dismissal of Commander Preble, of the United States naral service.

GENERAL ORDER.

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Dismissal of Com

lowing it.

Navy DEPARTMENT, September 20, 1862.
Commander George Henry Preble, senior officer in command of the blockading force
off Mobile, having been guilty of a negiect of duty in permitting the
armed steamer Oreto to run the blockade, thereby not only disregarding
article 3, section 10, of the articles of war, which requires an officer to manager Preble for al-
* do his utmost to overtake and capture or destroy every vessel which
it is his duty to encounter,” but omitting the plainest ordinary duty committed to an
officer, is, by order of the President, dismissed from the naval service from this date.

The commander of each vessel of war, on the day after the receipt of this published
general order, will cause it to be read on the quarter-deck at general muster, together
with the accompanying reports, and enter both upon the vessel's log.
(Signed)

GIDEON WELLES,

Secretary of the Nary.

FLAG-Ship HARTFORD,

Pensacola Bay, September 8, 1862. Sir: I regret to be compelled again to make another mortifying acknowledgment of apparent neglect, viz: the running of the blockade at Mobile by a 10-gun gun-boat, supposed to be Laird's gun-boat, Captain Bullock. You will perceive, however, from Captain Preble's report, herewith inclosed, that there was no want of vigilance. They saw ber in good time, but failed to sink or capture her. Why Captain Preble did not fire into her after she failed to stop or answer his hail I cannot imagine. The commander of the Rachel Leaman says, and I believe they all admit, that there never

was a finer opportunity for stopping a vessel until she passed them. Then, [74] *however, when it was too late, they commenced firing; the Oneida first, the

Winona next, and the Rachel Leaman last.
Very respectfully, &c.,
(Signed)

D. G. FARRAGUT,

Rear-Admiral, Commanding West Gulf Blockade. Hon. GIDEON WELLES,

Secretary of the Nary.

UNITED STATES STEAMER ONEIDA, OFF MOBILE,

September 4, 1862. SIR: I regret to inform you that a three-masted steamer, wearing the English red ensign and pennant, and carrying four quarter boats, and a battery of eight broadside guns, one or two pivots, and having every appliance of an English man-of-war, ran the blockade this afternoon, under the following circumstances :

I bad sent the Winona to windward to speak a schooner standing in under sail; the smoke of a steamer was discovered, bearing about southeast, and standing directly for us. Observing she was burning black smoke, I immediately got under way, and stood toward ber, signaling the Winona to "chase at discretion." We soon neared the stranger in company with the Winona, who, as we supposed, gradually hauled to the windward.

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