while here, stated that there was a gunboat building by Mr. Laird at Birkenhead for the Southern Confederacy; and not long after that a foreman employed about the vessel in Mr. Laird's yard stated that she was the sister of the Oreto,' and intended for the same service; and when pressed for an explanation, further stated that she was to be a privateer for the Southern Government in the United States.

When the vessel was first tried, Mr. Wellsman, one of the firm of Fraser, Trenholm, & Co. (who are well known as agents for the Confederate Government), Andrew and Thomas Byrne, and other persons, well known as having been for months actively engaged in sending munitions of war for said Government, were present, and have accompanied her on her various trials, as they had accompanied the Oreto' on her trial trip and on her departure.

In April last the Southern screw steamer 'Annie Child,' which had run the blockade out of Charleston, and the name of which was changed at this port to the 'Julia Usher,' was laden with munitions of war, consisting of a large quantity of powder, rifled cannon, &c. by Messrs. Fraser, Trenholm, & Co. for the Southern Confederacy, and left Liverpool to run the blockade under the command of a Captain Hammer, and having on board several of the crew of the privateer Sumter,' to which I have before referred.

For some reason unknown this vessel came back and is now here. Since her return, a youth named Robinson, who had gone in her as a passenger, has stated that the gunboat building at Lairds' for the Southern Confederacy was a subject of frequent conversation among the officers while she (the 'Julia Usher') was out. That she was all the time spoken of as a Confederate vessel, that Captain Bullock was to command her, that the money for her was advanced by Fraser, Trenholm, & Co.; that she was not to make any attempt to run the blockade, but would go at once as a privateer; that she was to mount 11 guns, and that if the 'Julia Usher' was not going, the six men from theSumter,' who were on board the Julia Usher,' were to join the gunboat. This youth, being a native of New Orleans, was extremely anxious to get taken on board the gunboat, and wished the persons he made the

communication to to assist him and see Captain Bullock on his behalf. He has, I understand, been removed to a school in London. With reference to his statement, I may observe, that Captain Hammer referred to is a South Carolinian, has been many years in Fraser, Trenholm, & Co's. employ, is greatly trusted by them, and is also intimate with Captain Bullock, so that he would be likely to be well informed on the subject, and as he had no notion at that time of returning to Liverpool, he would have no hesitation in speaking of the matter to his officers, and the persons from the Sumter.' I may also state that Captain Bullock referred to is in Liverpool; that he is an officer of the Confederate Navy; that he was sent over here for the express purpose of fitting out privateers and sending over munitions of war; that he transacts his business at the office of Fraser, Trenholm, & Co.; that he has been all the time in communication with Fawcett, Preston, & Co., who fitted out the 'Oreto,' and with Lairds, who are fitting out this vessel; that he goes almost daily on board the gunboat, and seems to be recognised as in authority.

A Mr. Blair, of Paradise-street, in this town, who furnished the cabins of the Laird gunboat, has also stated that all the fittings and furniture were selected by Captain Bullock, and were subject to his approval, although paid for by Mr. Laird.

The information on which I have formed an undoubting conviction that this vessel is being fitted out for the so-called Confederate Government, and is intended to cruise against the commerce of the United States, has come to me from a variety of sources, and I have detailed it to you as far as practicable. I have given you the names of persons making the statements, but as the information in most cases is given to me by persons out of friendly feeling to the United States, and in strict confidence, I cannot state the names of my informants; but what I have stated is of such a character that little inquiry will confirm its truth.

Everything about the vessel shows her to be a war vessel; she has well-constructed magazines; she has a number of canisters of a peculiar and expensive construction for containing powder; she has platforms already screwed to her decks for the reception of swivel guns.

Indeed the fact that she is a war vessel is not denied by the Messrs. Laird, but they say she is for the Spanish Government. This they stated on the 3rd of April last, when General Burgoyne visited their yard, and was shown over it, and the various vessels being built there by Messrs. John Laird, jun., and Henry H. Laird; as was fully reported in the papers at the time.

Seeing the statement and having been already informed from so many respectable sources, that she was for the so-called Confederate Government, I at once wrote to the Minister in London to ascertain from the Spanish Embassy whether the statement was true. The reply was a positive assurance that she was not for the Spanish Government. I am therefore authorised in saying that what was stated on that occasion, as well as statements since made, that she is for the Spanish Government, are untrue.

I am satisfied beyond a doubt that she is for a Confederate war vessel.

If you desire any personal explanation or information I shall be happy to attend you whenever you may request it.

I

am, &c.

(Signed)

THOMAS H. Dudley,

U. S. Consul.

Copy of Letter from the Collector of Customs, Liverpool, to the United States Consul.

Liverpool, July 10, 1862. Sir, I beg to acknowledge the receipt of your communication of yesterday's date (received this morning), and to acquaint you that I shall immediately submit the same for the consideration and direction of the Board of Customs, under whom I have the honour to serve. I may observe, however, that I am respectfully of opinion the statement made by you is not such as could be acted upon by the officers of this revenue, unless legally substantiated by evidence. I have, &c.

The Consul for the United States of America.

(Signed)

S. PRICE EDWARDS.

Copy of a Letter to the Collector at Liverpool.

Custom House, London, July 15, 1862. Sir,-Having considered your report of the 10th instant, No.1151, enclosing a communication which you had received from Mr. T. H. Dudley, American Consul at Liverpool, apprising you of certain circumstances relative to a vessel which he states is now being fitted out by Messrs. Laird, at Birkenhead, as a gunboat for the so-called Confederate Government of the Southern States of America, and intended to be used as a privateer against the United States, and having communicated with our Solicitor on the subject: We acquaint you that there does not appear to be primâ facie proof sufficient in the statement of the Consul to justify the seizure of the vessel, and you are to apprise the Consul accordingly.

(Signed)

FREDERICK GOULBURN.
R. W. GREY.

Copy of a Letter from the Collector of Customs, Liverpool, to the Commissioners of Customs.

Liverpool, July 21, 1862.

Honourable Sirs,-The United States Consul, accompanied by his solicitor, Mr. Squarey, has just been here with the witnesses, whose affidavits are enclosed,* requesting me to seize the gunboat alluded to in your Honour's order of the 15th instant, No. 345, upon the evidence adduced by him, that the gunboat has been fitted out by Messrs. Laird, of Birkenhead, for the Confederate Government of the Southern States.

The only evidence of importance, as appears to me, is that of William Passmore, who had engaged himself as a sailor to serve in the vessel.

I shall feel obliged by the Board being pleased to instruct me, by telegraph, how I am to act, as the ship appears to be ready for sea, and may leave any hour she pleases. Respectfully, (Signed)

**

S. PRICE EDWARDS.

Copies of these affidavits are included in the Papers relating to the 'Alabama,' laid before Parliament in 1863.

Nothing has been done to her since my former representation, nor has anything, besides coals, been placed in her. (Signed) S. P. E.

Mr. Adams to Earl Russell.—(Received July 22.)

Legation of United States,
London, July 22, 1862.

My Lord, I have the honour to transmit copies of six depositions,* taken at Liverpool, tending to establish the character and destination of the vessel to which I called your Lordship's attention in my note of the 23rd of June last.

The originals of these papers have already been submitted to the Collector of the Customs at that port, in accordance with the suggestions made in your Lordship's note to me of the 4th of July, as the basis of an application to him to act under the powers conferred by the Enlistment Act. But I feel it to be my duty further to communicate the facts as there alleged to Her Majesty's Government, and to request that such further proceedings may be had as may carry into full effect the determination which I doubt not it ever entertains to prevent, by all lawful means, the fitting out of hostile expeditions against the Government of a country with which it is at peace. I avail, &c.

(Signed)

CHARLES FRANCIS ADAMS.

Copy of a Letter from the Commissioners of Customs to the Collector of Customs, Liverpool.

London, July 22, 1862. Sir,-Having considered your report of the 21st instant, No. 1200, stating, with reference to previous correspondence which has taken place on the subject of a gunboat which is being fitted out by Messrs. Laird, of Birkenhead, that the United States Consul, accompanied by his Solicitor, has attended at the Custom House with certain witnesses, whose affidavits you have taken and have submitted for our consideration, and has requested that the vessel may

*Copies of these depositions are included in the 'Correspondence respecting the "Alabama," presented to Parliament in 1863,