Lord Lyons to Mr. Seward.

Sir: In a note which I had the honor to write to you on the 24th ultimo, I stated that I trusted that you would authorize me to inform the agents of Messieurs William Anderson, Saxon & company that the claim of that firm for payment for coals taken from Angra Pequena by the United States ship Vanderbilt might be sent in, and that if the particulars were found to be correct, it would be promptly satisfied.

In the answer which you did me the honor to address to me, on the 25th ultimo, you observed that perhaps these particulars might make the case more clear. In order to place them before you, I forward to you herewith a letter addressed to you by Messieurs Anderson, Saxon & Company, which has been sent to me by the agents under flying seal, and also a bill giving the particulars as to the quantity of coals taken, and the sum demanded in payment.

With regard to the remark made in your note, that it would be desirable to know for what purpose, and at whose instance, the coals were sent on board the Saxon, from Cape Town to Angra Pequena, as well as to the statement in your previous note of the 16th of March, that the coals had notoriously been sent to supply the steamer Alabama, it is my duty to inform you that her Majesty’s government are unable to assent to the position, that if the coals were sent to supply the Alabama, the owners of them would be disentitled to compensation.

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

LYONS.

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

Messrs. Anderson, Saxon & Co. to Mr. Seward.

Sir: We have this day sent to Messrs. C. J. and F. W. Coggill, of New York city, instructions, and a power of attorney, to act for us in the settlement of a claim against the United States government for coal taken by the United States steamer Vanderbilt, which we transmitted to you through Walter Graham, esq., United States consul at this port.

Should you decide to pay the bill, the Messrs. Coggill will draw upon the Treasury Department, or otherwise, as you may direct.

We have the honor to be, sir, your most obedient servant,

WM. ANDERSON, SAXON & CO.

Hon. William H. Seward, Secretary of State, Washington.

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I, Walter Graham, consul for the United States at Cape Town, do hereby certify that the signature above written is genuine, and that the power of attorney referred to has been shown to me, and that it is a genuine document in all respects.

WALTER GRAHAM, United States Consult Cape Town.

The United States Government to William Anderson, Saxon & Co., Dr. 1863.

November 23.—To 250 tons coal taken from Penguin island, by the boats and crew of the United States steamer Vanderbilt, by order of Captain Baldwin, on the 31st of October last, at £6 per ton £1,500

Cape Town.