No. 18.

Messrs. Sinclair, Hamilton & Co. to Earl Russell.—(Received February 8.)

My Lord: Referring to our letter of 29th January, as to the capture of the bark Saxon by the United States steamer Vanderbilt, we have now the honor to inform your lordship that the Saxon, at the time of capture, was at anchor within a mile and a half of Penguin island, British territory.

We have &c.,

SINCLAIR, HAMILTON & CO.