JOHN BAKER, Acting Master United States Navy to Commodore Paulding, January 7, 1862

Mr. Welles to Mr. Seward.

Sir: Referring to my letter of the 2d instant, I have the honor to transmit herewith an extract from a communication received from Acting Master John Baker, in explanation of his conduct in taking the prize schooner James Campbell into New York with the British flag flying under the American.

I have the honor to be your obedient servant,

GIDEON WELLES.

Hon. William H. Seward, Secretary of State.

[Extract.]

New York, January 3, 1862.

Sir: I received your order to-day stating for me to make a written statement and explain the reason for hoisting the English flag under the American. Commodore, not being acquainted with the customs of fetching in prizes, I was under the impression that I was right. My intention was to do right, but it was not done for any bad purpose or intention to insult the English flag in any way whatever. I was wrong for so doing, and truly hope the department will forgive me. * * * * *