the answer of secretary of the board, (marked No. 3.) I beg to call your attention especially to the affidavits of William Passmore, Robert John Taylor, Edward Roberts, and A. S. Clare, as positive and direct, and making, in my judgment, as strong proof as can ordinarily be made in cases of this nature, and quite strong enough to justify the detention of the vessel, if there was any disposition to do it. Copies of all these affidavits were made for Mr. Adams and by him submitted to Earl Russell. Mr. Squarey, with the consent of Mr. Adams, on Wednesday had an interview with Mr. Layard, the undersecretary of foreign affairs, showed him Mr. Collier's opinion, and made the request that the government would act promptly in the matter. I have not learned what decision has been finally made in the case. I hope for the best, but am quite prepared for the worst. It is proper for me to remark that the question of security to the col lector did not arise. The decision which was made turned upon the merits. I retained Mr. Collier in the case on Tuesday, and instructed him and Mr. Squarey, if the vessel was arrested, to institute proceedings immediately for her condemnation; Mr. Collier being of the opinion that this was necessary under the act, and that the collector would not be justified to hold her unless we took these steps. I have done about all that I can do to stop this vessel, much more, I think, than this government ought to require any friendly government to do. My counsel say I can do no more. They think the evidence not only sufficient, but conclusive, in the preliminary proceedings to detain the vessel. Indeed, they both say that it is enough to secure her condemnation before any court. I have procured a photographer to take her as she now lies in the dock. I will inclose a copy, if received in time for this communication. and shall send another to Mr. Craven, the commander of the Tuscarora. * With, &c., THOMAS H. DUDLEY. N. B.-Since writing the above I have received a copy of letter from the collector to Mr. Squarey, my solicitor, announcing the decision of the board upon the case submitted to the collector. It is inclosed, marked No. 4. It is a strange decision, the last part. Mr. Squarey has called upon the collector and asked him the meaning of this last paragraph: his response was that this was copied from the letter addressed to him by the board. I am instructed by my counsel that I have no power to stop the vessel; that the power to detain her is lodged in the collector. [Inclosures will be found with Mr. Adams's dispatch to Mr. Seward, July 25, 1862, post.] No. 196.] Mr. Adams to Mr. Seward. LEGATION OF THE UNITED STATES, London, July 25, 1862. SIR: Since the date of my dispatch No. 187, of the 17th July, I have to report that I received from Mr. Collier so decided an opinion in regard to the illegality of the proceedings at Liverpool that I directed Mr. Dudley to proceed with the utmost vigor in the preparation of the necessary depositions to place before the collector of customs at Liverpool. I authorized him to act under professional advice, so that no mere omission of form could be made to avail against us. No time has been lost in getting up the papers and in submitting them in the proper quarter. For two days Mr. Dudley and his adviser, Mr. Squarey, have been in constant communication with me here, and all the measures taken by them have been sanctioned by me. I am sorry to say that, although the second opinion of Mr. Collier, based upon the depositions themselves, is so unequivocal, I have reasons to believe that they are not likely to be more effective to secure the detention of the ship by the collector than any former action. Not to omit any step that could be imagined likely to avail, I [247] transmitted *copies of all the papers to Lord Russell, with a request for action on the subject in his department. I now send copies of the same, with the exception of the affidavits, which Mr. Dudley will probably send for your consideration. As yet I have no answer from Lord Russell. I am not sanguine of success; but it seems to me that the action taken is essential to complete the record. I have authorized Mr. Dudley and Mr. Morse to incur some liabilities in the process, which I hope will not be regarded as ill judged. The Tuscarora has not yet left Southampton. I shall give Captain Craven directions. to intercept the vessel, if possible, should she be permitted to depart. I have, &c., (Signed) CHARLES FRANCIS ADAMS. Opinion of Mr. R. P. Collier. The accompanying copy of a statement, submitted by the American consul in Liverpool to Her Majesty's collector of customs there, will furnish all the information which has at present been obtained relative to the fitting out of a vessel intended to be used as a privateer for the purposes of the Confederate States of America. It is believed that the vessel is now very nearly ready. The American Government are desirous of taking immediate steps, under the foreign-enlistment act, 59 Geo. III, cap. 69, to seize the ship and get her condemned. Mr. Collier, Queen's counsel, is requested to advise as to the proper course of proceeding under the circumstances. WESTERN CIRCUIT, Winchester, July 16, 1862. I think the evidence almost conclusive that the vessel in question is being fitted out by the Messrs. Laird as a privateer for the use of the confederate government, in contravention of the provisions of the foreign-enlistment act, 59 Geo. III, cap. 69. As the matter is represented to me to be urgent, I advise that the principal officer of the customs at Liverpool be immediately applied to, under 59 Geo. III, cap. 69, to exercise the powers conferred upon him by that section to seize the vessel, with a view to her condemnation, an indemnity being given to him, if he requires it. It would be proper at the same time to lay a statement of the fact before the secretary of state for foreign affairs, coupled with a request that Her Majesty's government would direct the vessel to be seized, or ratify her seizure if it has been made. If the matter were not urgent I should advise no other steps being taken until it was known whether or not the government thought fit to interfere; but inasmuch as the government might not unreasonably take some little time to determine what course to pursue, during which time the vessel might escape, I advise the more prompt remedy. Mr. Edwards to Mr. Dudley. CUSTOM-HOUSE, Liverpool, July 16, 1862. SIR: With reference to my letter of the 10th instant, acknowledging your communication of the 9th, relative to the vessel built by Messrs. Laird, of Birkenhead, I have to acquaint you, that I am directed by the commissioners of Her Majesty's customs to apprise you that their solicitor informs them that the details given by you in regard to the said vessel are not sufficient, in a legal point of view, to justify me in taking upon myself the responsibility of the detention of the ship. I have, &c., J. PRICE EDWARDS, Collector. [248] *Mr. Edwards to Mr. Squarey. CUSTOM-HOUSE, Liverpool, July 23, 1862. SIR: With reference to your communication of the 21st instant, on the subject of a gun-boat which is being fitted out by Messrs. Laird, of Birkenhead, and requesting that the ship might be seized under the foreign-enlistment act, upon the ground that the evidence adduced affords proof that she has been fitted out for the Confederate States of America, I have it in command to acquaint you that the board have communicated with their solicitor on the subject, who has advised them that the evidence submitted is not sufficient to justify any steps being taken against the vessel under either the 6th or 7th section of the act 59 Geo. III, cap. 69. It is, however, considered to be competent for the United States consul to act at his own risk if he should think fit. I am, &c., J. PRICE EDWARDS. Mr. Squarey to Mr. Adams. TAVISTOCK HOTEL, COVENT GARDEN, SIR: I beg to inform you that I saw Mr. Layard at the Foreign Office after leaving you this afternoon, and ascertained from him that the papers forwarded by you in reference to the gun-boat No. 290 were sub mitted yesterday to the law-officers of the Crown for their opinion. The opinion had not, up to the time of my seeing Mr. Layard, been received, but he promised, on my representation of the extreme urgency of the case, to send for it at once. Mr. Layard was not disposed to discuss the matter, nor did he read Mr. Collier's opinion. I now inclose a copy of the case with Mr. Collier's opinion, and a copy of the letter which I have addressed this afternoon to the secretary of the board of customs. I have, &c., (Signed) A. F. SQUAREY. Mr. Squarey to Mr. Adams. GUN-BOAT NO. 290. TAVISTOCK HOTEL, COVENT GARDEN, London, July 25, 1862. SIR: I have further to report to you on this matter that I have again seen Mr. O'Dowd, the solicitor to the board of customs, who informs me that, on receipt of my letter addressed to the secretary yesterday, the board resolved to refer the matter to the law-officers of the Crown, by whose opinion they would be guided as to seizing the vessel. I have, &c., A. F. SQUAREY. No. 99.] Mr. Dudley to Mr. Seward. UNITED STATES CONSULATE, SIR: The steamer No. 290 sailed yesterday at about 11 o'clock in forenoon. Orders were given to the men to be on board on Monday evening at 6 o'clock. I much regret my inability to procure a photograph of her. She lay in with other vessels in such manner that it could not be obtained. I could not complete a satisfactory arrangement with the man referred to in No. 95, to go out in her. I am told there is a man on board by name of John Readdy, from one of the New England States, (he has signed his name Jack Readdy,) who can be procured as a witness at any port she may go to. She left the port without a register or clearance from the custom-house. After she had steamed out of the river, I sent one of my clerks to the custom-house to ascertain if she had been registered or cleared. They informed him that she had not, and that it was not necessary. I do not understand this. It would seem as if all vessels for the rebels, and to carry munitions of war and aid to them, were privileged at this port; at least every facility for their de [249] parture and conducting their operations is extended to them. *I have not been able to ascertain any reliable information as to her movements. One report is that she has gone out on a trial trip, and will return into port; another, that she has gone to Queenstown; a third, that she has taken her final departure, and will go direct to the place where she is to receive her armament. I think she will go to Nassau to receive her armament. That seemed to be understood among the crew, but it is possible that this was told them to mislead them or me. I am satisfied that her guns are not on, and that she will have to go to some place or port to get them. Since writing the above, one of my men has called to say that the steam-tug Hercules is at the Birkenhead ferry taking on men, beams for gun-carriages, and other things for this vessel; that she is now lying off Cape Lynas waiting for the tug; that during the whole of last night she has been receiving gunpowder on board, and that she has six of her guns below deck. I have telegraphed this news to Mr. Adams, and called myself in person, with my informant, on the collector of the port and gave him the information. I am now preparing a formal letter to the collector. One of the persons interested stated that they would go to a Spanish port. I shall address notes to all the consuls to-day at Spanish ports. I will inclose you a copy of my letter to collector during the day. I have, &c., (Signed) THOMAS H. DUDLEY. It is now ascertained that she will not return to this port unless she meets with an accident. A copy of letter is inclosed. Mr. Adams to Mr. Seward. No. 199. LEGATION OF THE UNITED STATES, London, July 31, 1862. SIR: You must long before this have received all the information respecting the Laird gun-boat, No. 290, for which you ask in your dispatch No. 299, of the 12th of July. It only remains for me to continue the narrative of that transaction down to this date. In spite of all my efforts and remonstrances, which as yet wait the opinion of the lawofficers of the Crown, I received on the 29th instant from Mr. Dudley, the consul at Liverpool, the news that she sailed without register or clearance from that port on that day. I immediately communicated the intelligence by telegraph to Captain Craven, at Southampton. 1 learn from the consul at that place that the Tuscarora sailed from thence at 8 p. m. on the 29th instant. Should the captain be so fortunate as to encounter the vessel on the high seas, I have every reason to believe that he will attempt her capture. But I have given him no instructions how far to pursue her, or what to do in case of failure. In these respects he is left entirely to his own discretion. I have, &c., CHARLES FRANCIS ADAMS. Mr. Adams to Mr. Seward. [Extracts.] No. 201.] LEGATION OF THE UNITED STATES, SIR: Yesterday I had a conference with Lord Russell at the Foreign Office, in the course of which I went over the various subjects whereupon I had received instructions in your late dispatches. ** 2. I read to his lordship the substance of your dispatches Nos. 281 and 299 respecting the use made of the island of Nassau by the rebels, and the fitting out of the gun-boats Oreto and 290. His lordship first took up the case of 290, and remarked that a delay in determining upon it had most unexpectedly been caused by the sudden development of a malady of the Queen's advocate, Sir John D. Harding, totally incapacitating him for the transaction of business. This had made it necessary to call in other parties, whose opinion had been at last given for the detention of the gun-boat, but before the order got down to Liverpool the vessel was gone. He should, however, send directions to have her stopped if she went, as was probable, to Nassau. I said I was |