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[338] shore, in the cemetery, with the honors of war, and her other officers paroled. The Owasco, which had been anchored below the town, coaling, the night before, got under way, moved up at the commencement of the attack, and engaged the enemy's artillery on shore. When it was light enough for her to observe that there were two rebel steamers alongside the Harriet Lane, she moved up to her assistance, grounding several times in so doing, owing to the narrowness of the channel. She could only occasionally bring her eleven-inch gun to bear. She was soon driven back by the incessant fire of the enemy's musketry, and when the howitzers of the Harriet Lane opened on her, she concluded she had been captured, and backed down below the Sachem and Corypheus, continuing her engagement with the enemy on shore. She had all her rifle-gun crew wounded when above, and lost in all one man killed and fifteen wounded.

The Clifton before the action commenced, went around into Bolivar Channel, to render assistance to the Westfield, which had got under way when the rebel steamers were first discovered, soon afterward got hard and fast ashore, at high-water, and then made a signal for assistance. While the Clifton was in the act of rendering this assistance, the flashes of the enemy's guns were first seen in the town. Commander Renshaw then directed Lieut. Com. Law to leave him and to return to the town.

The moon had now gone down, and it became quite dark, yet the Clifton, with some difficulty got around into the other channel, opening the batteries upon Fort Point, which the rebels now had possession of, shelling them out and driving them up the beach as she neared the town. Here she anchored and continued the engagement, but did not proceed up to the rescue of the Harriet Lane, owing to the failure of the Owasco, the intricacy of the channel, and the apprehension of killing the crew of the Harriet Lane, who were then exposed by the rebels on her upper deck.

It was now about half-past 7 A. M. A white flag was hoisted on the Harriet Lane. A boat bearing a flag of truce, with a rebel officer and an Acting Master of the Harriet Lane, came down to the Clifton, informing her Commander of the capture of the Harriet Lane, the death of her Commander and First Lieutenant, and the killing and wounding of two thirds of her crew, all of which was corroborated by the Acting Master.

Major Smith, their Commander, now proposed that our vessels should all surrender, and that one should be allowed, with the crews of all, to leave the harbor; otherwise they would proceed down with the Harriet Lane, and all their steamers, (three more of which had appeared in sight after daylight, but were neither armed or barricaded,) and proceed to capture the gunboats in line.

Lieut. Commander Law replied that he was not the commanding officer, and that he could not imagine that such terms could be accepted; but that he would take the Acting Master of the Harriet Lane, and proceed over to the Westfield, and tender his proposal to Commander Renshaw. This he did, and went in his own boat. Flags of truce were at this time flying on our vessels, and by the parties on shore. During the absence of Lieut. Commander Law, and under these flags of truce, the rebels coolly made prisoners of our troops on shore, got more of their artillery into position, and towed the Harriet Lane alongside the wharf, though it had been understood that every thing should remain in statu quo until an answer should have been received. Commander Renshaw refused to accede to the proposition, directed Lieut. Commander Law to return, and get all the vessels out of port as soon as possible, and as he found he could not get the Westfield afloat, he should blow her up and go on board the army transports Saxon and M. A. Boardman, which were lying near him, with his officers and crew.

Upon Lieut. Commander Law's return to his vessel, he proceeded to carry out these direction. The flags of truce were hauled down, the enemy firing upon the vessels as we then left the harbor.

When the Clifton was half-way toward the bar, her commander was informed, by a boat from the Westfield, that in the explosion of that vessel, which they observed some half-hour before, Commander Renshaw, Lieut. Zimmerman, Engineer Green, and some ten or fifteen of the crew, had perished, the explosion being premature. Lieut. Commander Law, now being commanding officer, proceeded to cross his vessel over the bar, and finally concluded to abandon the blockade altogether, considering the Owasco as his only efficient vessel, and regarding her as not equal to resist an attack from the Harriet Lane, should she come out for that purpose.

By eight P. M. they had all left the blockade, although the commander of the Clifton had been notified by an officer on board the M. A. Board man, that another transport would be down within forty-eight hours, and requested that he would warn her off.

The vessels, which were left in possession of the enemy, were the Harriet Lane, and two coal barks, the Cavallo and Elias Pike. The only injury sustained by the Harriet Lane, appears to have been from an eleven-inch shell under her counter, fired by the Owasco, and the damage to her guard from the collision.

Very respectfully,

James S. Palmer, Captain. Melancton Smith, Captain. L. A. Kimberly, Lieut. Commanding. Rear-Admiral D. G. Farragut, Commanding Western Gulf Blockading Squadron.


New-York Tribune account.

New-Orleans, January 4, 1863.
Yesterday, at sunset, a startling rumor reached this city. It was said that the rebels at Galveston, Texas, had made an unexpected attack,


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