Mr. Seward to Lord Lyons.

My Lord: With reference to your note of the 21st of July last, relative to the case of the brigantine Scylla, which vessel was seized by the United States military authorities at Brazos Santiago, Texas, I have the honor to enclose in reply a copy of a letter of the 10th instant from the War Department, which is accompanied by a copy of a report upon the case made by Major General Canby.

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

WILLIAM H. SEWARD.

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

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Mr. Dana to Mr. Seward.

Sir: In reply to your letter of the 12th of August last, transmitting a copy of a communication from the British minister relative to the brigantine Scylla, seized by the military authorities of the United States at Brazos Santiago, Texas, I am instructed, by the Secretary of War, to enclose a copy of the report made by Major General Canby, to whom the subject was referred for investigation; and from which it appears that the vessel with her neutral cargo has been turned over to the United States marshal for the district of East Louisiana, and reported to the district attorney for libel.

I have the honor to be, sir, your obedient servant,

C. A. DANA, Assistant Secretary of War,

Hon. William H. Seward, Secretary of State.

General Canby to Adjutant General Thomas,

Sir: I have the honor to return the papers in relation to the brigantine Scylla, referred through your office by the State Department for investigation and report. The evidence and the admission of Mr. Adams show that he has no claim to the character of a neutral. He is still a citizen of the United States, and, under the law of nations, a deserter from the duties and obligations of that citizenship, and his property is subject to capture wherever it may be found. In his case, as there are no neutral rights or questions of prize money involved, the title is vested by the capture, and his only relief is in executive remission, or by an appeal to the Court of Claims, under the 3d section of the act of Con-gress approved March 12, 1863.

How far the vessel may be tainted by the unlawful intent and destination of the voyage, can only be determined by courts exercising admiralty jurisdiction; and there is no doubt an error was committed by the military authorities on the Rio Grande in not sending the vessel and the neutral cargo on board of her, for adjudication by the United States courts.

The only other question involved in the reference of these papers is the ruse by which the vessel was brought under the control of the land forces of the United States. This is properly a subject for judicial decision. Under the laws of war it was, in my judgment, perfectly legitimate; and there are decisions in the English courts in which similar stratagems are declared to be “not only justifiable but commendable.”

The brigantine and her neutral cargo will be turned over to the United States marshal for the district of East Louisiana, and reported to the district attorney for libel. The property (or the proceeds, if it has been sold) of Mr. Adams will be turned over to the supervisory special agent for this district, under the act of March 12, 1863. .

Very respectfully, sir, your obedient servant,

ED. R. S. CANBY, Major General Commanding.

Adjutant General of the Army, Washington, D. C.