Mr. Seward to Lord Lyons.

My Lord: With reference to your note of the 27th ultimo, requesting further particulars in regard to the transfer of the British prize steamer Granite City to the Navy Department, I have the honor to communicate a copy of two letters, upon that subject, addressed to this department, by the United States attorney at New York, one bearing date the 22d ultimo, and the other the 8th instant.

It appears, from these communications, that the owners of the vessel were not notified of the application to the court for the transfer, because no attorney had appeared in the suit on their behalf.

I have the honor to be, with high consideration, your lordship’s obedient servant,

WILLIAM H. SEWARD.

Right Hon. Lord Lyons.

[Page 600]

Mr. M. Delafield Smith to Mr. Seward.

Office of the District Attorney of the United States for the Southern District of New York,

Sir: I have the honor to acknowledge the receipt of your letter of the 20th instant, requesting information as to the order of the court, directing the transfer to the Navy Department of the steamer Granite City, captured as prize, and the reasons assigned for that proceeding.

In reply, I have to say that the Granite City arrived at this port on the 29th, and was libelled as prize on the 30th ultimo. On the 7th instant, I received a letter from the honorable Secretary of the Navy, stating that the Navy Department would take the steamer for the use of the government, at a valuation of $55,000.

I accordingly applied for, and obtained from the court, an order for the delivery of the vessel to the agent of the Navy Department, basing my application upon the second section of the act of Congress of March 3, 1863, entitled, “An act further to regulate proceedings in prize cases, and to amend various acts of Congress in relation thereto.” I enclose, herewith, a copy of the order granted, and of the letter above referred to.

I add for your information that the monition issued against the vessel and cargo were returned into court yesterday, and no one appearing to claim either, the default of all parties was taken, and the case submitted to the court for its decision.

I am, sir, with great respect, your obedient servant,

E. DELAFIELD SMITH, U. S. District Attorney.

Hon. William H. Seward, Secretary of State.

[Untitled]

At a stated term of the district court of the United States of America for the southern district of New York, held at the United States court rooms in the city of New York, on Wednesday, the 8th of April, A. D. 1863.

Present: The honorable Samuel R. Betts, district judge.

The United States } In prize.
vs.
The Steamer Granite City, her tackle, &c, and cargo.

A libel having been filed on the part of the United States, in prize, against the above vessel, and a warrant of attachment thereon having been served upon her, and she being held in custody by the marshal, on filing a copy of an official letter from the Secretary of the Navy, dated April 6, 1863, to E. Delafield Smith, United States district attorney, and on motion of said attorney, it is ordered by the court, that the marshal forthwith deliver, for the use of the government, the said vessel into the possession of the Secretary of the Navy, or such person as may be by him authorized to receive her, and that the cargo of the above-named steamer Granite City be immediately unladen by the marshal under the superintendence of the prize commissioners, and that the same be stored in some suitable warehouse to be selected for that purpose, there to abide the decree or further order of the court; and that at the time of such [Page 601] discharge, the said prize commissioners take a full and accurate inventory of the said cargo, specifying each package thereof, and file the same with the clerk of this court, with all convenient speed,

SAMUEL R. BETTS.

A true copy.

GEO, E. BETTS, Clerk.

Mr. Welles to Mr. Smith,

Sir: The department will take for the use of the government the prize steamer Peterhoff, valued at one hundred and ten thousand dollars, and the prize steamer Granite City, valued at fifty-five thousand dollars, and will deposit these amounts as required by law.

The commandant of the navy yard at New York has been directed to receive the vessels.

I am, respectfully, your obedient servant,

GIDEON WELLES, Secretary of the Navy.

E. Delafield Smith, Esq., United States Attorney, New York.