No. 14.

Messrs. Sinclair, Hamilton & Co. to Mr. Hammond.—(Received February 3, 1864.)

Sir: With reference to the conversation Mr. Hamilton had with you last week on the subject of the coals taken from Penguin island by the United States steamer Vanderbilt, when you expressed a doubt as to whether the island was British territory, we have to say that we are informed on good authority that a man-of-war was sent (we believe towards the end of 1861) to take possession, and the British flag was hoisted in due form. Furthermore, the colonial government granted a lease of the island, or a portion of it, to Messrs. Granger and Co., merchants, Cape Town, who have ever since occupied it and carried on business there. Under these circumstances we trust Earl Russell will support Messrs. Anderson, Saxon & Co.’s claim on the government at Washington, for the value of their coals seized in so outrageous a manner by the Vanderbilt.

We have, &c.,

SINCLAIR, HAMILTON & CO.