Lord Lyons to Mr. Seward.

Sir: I have the honor to transmit to you an extract from a despatch from her Majesty’s consul at New York, relative to the arrest and imprisonment of Mr. James McHugh, who arrived at that place in the British packet City of Washington on the 17th instant, and who appears to be a British subject. You will perceive that the marshal at New York had stated to her Majesty’s consul that he was about, in pursuance of directions, to transfer Mr. McHugh from the county jail to Fort Lafayette. I trust you will be so good as to acquaint me as soon as possible with the grounds of the arrest and imprisonment of Mr. McHugh.

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

LYONS.

Hon. William H. Seward, &c., &c., &c.

Extract from a despatch from Consul Archibald to Lord Lyons, dated New York, December 25, 1863.

“I have the honor to report to your lordship that Mr. James McHugh, a British subject, landed on the 17th instant from the steamer City of Washington, (which vessel arrived on that day at this port from Queenstown,) and was [Page 451] immediately arrested by the custom-house officers. On the 19th instant I received a note, dated the 18th instant, from Mr. McHugh, informing me of his arrest and claiming my protection, and stating, at the same time, that he was ignorant of the cause of his arrest. On the same day (the 19th) I applied to the marshal for information as to the cause of Mr. McHugh’s arrest, and received on Monday, the 21st, a reply from the marshal stating that Mr. McHugh had been arrested and handed over to him by the officers of the customs, as a ‘bearer of rebel despatches,’ and because he had been concerned in running the blockade; that the custom-house authorities were to produce evidence before him, and that unless such evidence were produced before him in the course of that day, he (the marshal) would discharge Mr. McHugh.

“On Wednesday, the 23d, finding, by a note from Mr. McHugh, that he was still in custody, I wrote a note to the marshal inquiring why the prisoner had not been set at liberty. Not receiving any reply, and having (yesterday, the 24th) received a further urgent note from Mr. McHugh, I again addressed a note to the marshal, trusting that Mr. McHugh would be liberated in the course of yesterday. To this note I received a reply from the marshal, informing me that, in pursuance of directions, he was about to transfer Mr. McHugh from the county jail to Fort Lafayette.”