Mr. Seward to Lord Lyons.

My Lord: I have the honor to communicate for your lordship’s information, and that of her Majesty’s authorities in Canada, a copy of a despatch of the 8th instant from D. Thurston, esquire, the vice-consul general of the United States at Montreal, and of the paper which accompanied it, in regard to the sale of the schooner Georgian, or Georgiana, to parties suspected of being agents of the insurgent enemies of the United States, which was the subject of my note to your lordship of this morning.

I have the honor to be, with the highest consideration, my lord, your obedient servant,

WILLIAM H. SEWARD.

Right Hon. Lord Lyons, &c., &c., &c.

Mr. Thurston to Mr. Seward.

No. 91.]

Sir: I have the honor to enclose a letter from the consular agent at Toronto, in relation to the sale of the schooner Georgian to a supposed rebel agent by parties residing at Toronto. This is a new vessel, built some year and a half since on,the Georgian bay by G. H. Wyatt and others, and has, I believe, made” one trip across the Atlantic. She is a splendid vessel, built with great care, a fast sailer, and would, if employed in the business mentioned in Mr. Kimball’s despatch, be capable of doing immense injury to the shipping on the lakes. Mr. Wyatt and his partners sold the steamer Bowmanville some two years ago. She was ostensibly to be employed in legitimate trade, but was undoubtedly designed for blockade running. The corroboration of the purposes for which the Georgian has been purchased by four persons, unknown to each other, would seem to establish the fact that she has been bought for the design of being con-verted into a ram by rebel agents in Canada, and that measures should be at once taken to prevent the plan being executed. I have notified the Canadian government.

With great respect, I am, sir, your obedient servant,

D. THURSTON, United States Vice-Consul General

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

[Page 772]

Mr. Kimball to Mr. Potter.

Sir: I have the honor to report the following information which I communicated to the provost marshal of Buffalo, N. Y., under date of November 3. It is given to me by four different parties, unknown to each other:

First. Messrs. A. M. Smith & Co, and George H. Wyatt informed me, in answer to my questions, that they have sold the propeller Georgian, which they owned, to one Bates, from Michigan, who intends to use her in the lumber trade. They delivered her at Port Colborne, C. W., on the first or second of this month. They claim that she is particularly adapted to the lumber trade, as she carries heavy loads with light draught, and the present owners intend to strengthen her beams for towing. I consider they partially admitted that the pay came through the Ontario Bank, ($16,500,) where I know Colonel Thompson, the confederate agent, keeps his account.

The second person says he knows this Bates; knew him in Louisville, Ky. He was at one time a captain of the steamer Magnolia on the Mississippi river.

A third person, whom I well know, but who has previously sympathized with the confederates, came to me of his own accord to reveal what he claims as a great plot, in order to arrest it, because, he assumes, its success would have a tendency to make trouble between the United States and Canada. He gives as a synopsis the following, which he says he received from Captain Bates himself:

The Georgian is purchased by the confederates. She is to be strengthened in the bow for a ram somewhere on Lake Huron, after which she will take on men, cannon, small-arms, and ammunition, and run into the Michigan off Johnson’s island to sink her; then make a dash to release the prisoners, who will at once be furnished with arms if they meet with success; alter which the Georgian will go on a cruise of destruction, including Buffalo harbor and other places.

My informant claims to know the details of the whole plot, men and places, and would reveal the whole of it to the authorities in the United States, if I, as an officer of the United States government, would pay his expenses, and he would also expect the United States to remunerate him. I told him I could not see any difference between his revealing to me or to the authorities in Buffalo, and therefore could not comply with his requests, but if he would give me his information I would transmit it to the department, and if it was of real service to them I had no doubt they would do him justice. He would not consent to this.

A fourth person says he has been solicited to join an expedition by the confederates. They tell him they have a steamer, but would not say what one it was, plenty of arms and ammunition, and they were going to make an attempt to release the prisoners on Johnson’s island. For the purpose of getting more information he agreed to meet them at Sarnia this week; would be here on Monday next, and would see me and give me any further information he might obtain.

Taking these circumstances altogether, I have no doubt something of the kind is intended, and therefore immediately communicated the intelligence as I received it to the authorities in Buffalo, with the request that they should notify other authorities as they deem proper.

I am, sir, very respectfully, your obedient servant,

R. J. KIMBALL, United States Consular Agent.

Hon. John F. Potter, Consular General, B. N. A P., Montreal, C. E.