Lord Lyons to Mr. Seward.

Sir: I beg to call your attention to the statement in the enclosed copy of a despatch from her Majesty’s consul at New York, that the Granite City, of London, a British steamship, has, while waiting the action of the prize court, been taken, by orders from Washington, for the service of the United States government.

I shall be much obliged if you will inform me, at your earliest convenience, whether the fact is as it has been represented by her Majesty’s consul.

I have the honor to be, with the highest consideration, sir, your most obedient, humble servant,

LYONS.

Hon. W. H. Seward, &c., &c.

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My Lord: I have the honor to report to your lordship the arrival at this port of the steamship Granite City, of London, in charge of a prize crew from the United States ship-of-war Tioga. The Granite City, according to the report of the master, cleared from Nassau, N. P., on the 21st ultimo, for St. John’s, New Brunswick, with a cargo, consisting of coffee, salt, copperas, and dry goods. At daybreak on the following morning, when about 60 miles to the westward of the island of Elenthera, the Granite City was fallen in with by the Tioga, and having been brought to, by a shell fired from the latter vessel, was boarded; the greater part of her crew were removed to the Tioga, and a prize crew put on board the Granite City, which was then despatched to this port, where she arrived on the 29th ultimo.

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While waiting the action of the prize court, the Granite City has been taken, by orders from Washington, for the service of the United States government.

I have, &c.,

E. M. ARCHIBALD.

Lord Lyons, &c., &c.