William H. Seward to Charles Francis Adams, May 20, 1862

Mr. Seward to Mr. Adams.

Sir: With reference to the case of the Labuan, which is the subject of your despatch, No. 151, of the 2d instant, I have to remark that when it was first presented to the department by Lord Lyons my impression was that the capture was illegal. My opinion, however, was that there was probable cause enough for the capture to warrant a judicial investigation of the case, at least for the purpose of assessing the damages which might be due to the claimants. This opinion was soon after confirmed by a letter from the United States consul at Matamoras to the department, which represented that at the time of the capture the Matamoras custom-house was at Brownsville, and that the cotton which was on board the Labuan at the time of the capture proceeded from the latter place in a steamer belonging there.

The attorney of the United States at New York was instructed to endeavor to have the case disposed of as soon as might be practicable, and the department is in daily expectation of receiving from him the result of the proceedings.

I am, sir, your obedient servant,