Pinckney Walker to P. S.—It is stated in the public papers that Penguin island, at Angra Pequena, near which the Saxon is said to have been seized, and whence the coal was taken by the Vanderbilt, is a British possession, and was annexed to the Cape Colony at the same time as Ichaboe, but of this circumstance I am not aware, my instructions being only to take possession of the island of Ichaboe, November 17, 1863

Rear-Admiral Sir B. Walker to the Secretary to the Admiralty.

Sir: I beg you will inform the lords commissioners of the admiralty that the United States ship-of-war Vanderbilt, after leaving this port on the 11th September last, proceeded to Mauritius, in search, I believe, of the confederate ships Alabama and Georgia. Not finding either of those vessels, she returned to Table bay to coal and provision on the 22d ultimo.

When this vessel first touched at this port, the commander requested to be supplied with coals and provisions, which, on the supposition that he had not received any at a British possession for three months, having it was believed come last from Rio de Janeiro, his demands were complied with. It was subsequently ascertained that the Vanderbilt had touched at St. Helena and received about 400 tons of coal, all that was there.

Under these circumstances, with the fact of her having obtained coal at Mauritius, on the question being raised, I expressed to the governor of this colony my opinion that no further supplies should be given her here, in accordance with the provisions of Earl Russell’s letter for the preservation of strict neutrality. The Vanderbilt did not, therefore, receive any coal, and left Table bay on the 27th ultimo, proceeding northward.

On the 6th instant I received a letter from some merchants at Cape Town (a copy of which is enclosed) reporting that the Vanderbilt had met the colonial vessel Atlas and subjected her to very close examination, and as it appeared to be probable that Commander Baldwin would proceed to Ichaboe for the purpose of searching some English vessels there, I despatched the Valorous to that island to prevent anything of the kind, and to acquaint the American captain, if he was not aware of it, that it is a British possession.

The Valorous returned to this port on the 15th instant, reporting (see inclosure No. 2) that the Vanderbilt had visited Angra Pequena, on the west coast of Africa, and having found there the colonial vessel Saxon (lately employed in conveying cattle to Ascension) loading with wool, stated to have been part of the cargo of the Tuscaloosa, disembarked there, (a vessel captured by the Alabama and constituted a tender, but which vessel was not condemned in any prize court, as stated in my letter No. 86 of the 19th August last.) Commander Baldwin seized her, and sent her as a prize to New York, putting the crew into a small English schooner, now on her way to Table Bay. The Valorous did not fall in with the Vanderbilt, nor had that vessel been at Ichaboe. It was also reported to Captain Fersyth that the mate of the Saxon had been shot, but under what circumstances he could not learn.

It is stated that the Vanderbilt took in 250 tons of coal, said to belong to Messrs. de Pass, Spence & Co., of Cape Town, from an island at Angra Pequena.

I should remark that Angra Pequena lies beyond the colonial territory, but our merchants have been there collecting guano, &c.

The Valorous did not find any vessels whatever at Ichaboe, and therefore returned to this anchorage on the 15th instant.

I have, &c,