Mr. Seward to Lord Lyons.

My Lord: Recurring to your note of the 21st ultimo, respecting the case of the Margaret and Jessie, and to my reply, I have now the honor to communicate to your lordship a copy of a letter of the 2d instant from the Secretary of the Navy, informing me that a court of inquiry has been ordered to convene at Boston on the 7th instant for the purpose of investigating the circumstances [Page 576] connected with the alleged violation of British territorial jurisdiction in the case of the steamer above named.

I have the honor to be, with high consideration, my lord, your obedient servant,

WILLIAM H. SEWARD.

Right Hon. Lord Lyons, &c., &c., &c.

Mr. Welles to Mr. Seward.

Sir: I have the honor to state for your information that the United States steamer Rhode Island, under the command of Commander Stephen D. Trenchard, having recently arrived at Boston, the department has ordered a court of inquiry to convene at the navy yard in that city on Thursday next, the 7th instant, for the purpose of a thorough investigation of the circumstances connected with the alleged violation of British territorial jurisdiction in the case of the steamer Margaret and Jessie.

In conformity with the suggestion made in your letter of the 28th ultimo, the evidence in the case submitted on the part of the British government will be transmitted to the court for its guidance in the investigation; but it is proper to state, in this connexion, that the court, in its findings, must be governed by evidence of a legal character, and the party whose conduct is the subject of inquiry has the right to cross-examine witnesses.

I am, respectfully, your obedient servant,

GIDEON WELLES, Secretary of the Navy.

Hon. William H. Seward, Secretary of State.