mate was put over the side to plug the hole, but found it impossible to do it, as it was too low and the planking shattered. The ship was making water very fast. We continued to fight until the magazine was drowned out. All the powder was taken out and put in the cabin. About 8. 30 the ship was setting fast by the stern. The captain sent me down to examine the leak, and found about four feet of water in the hold and gaining fast. The captain then ordered her to be run on shore. We headed for Navy Cove, but could not steer the ship only with the engines. The captain then ordered the pilot to put her on shore as near Fort Morgan as possible. We still fought what guns could be brought to bear on the enemy. She struck the beach about 9 o'clock. We then discovered a vessel off Fort Morgan; opened on her from our pivot gun. The forts was firing at her. they soon abandoned their ship. Captain Bennett then made signal for the Morgan. She came within hail. He spoke to her and told Captain Harrison that the enemy had deserted their ship and he could burn her. Captain H. then sent a boat's crew to burn her, which they did. We got all our ammunition out, and all gun gear and everything that could be saved of any value. the water was then two feet over the cabin floor. We all left her in the boats and took up our quarters in the hospital. We were employed during the day in conveying the ammunition to the railroad and getting ready to leave at dark. We left Fort Morgan at 8 o'clock that evening and arrived in town next morning.

The dead were buried at Fort Morgan by our crew.

We were struck seventeen times, and several shells burst over and near, so that the ship was struck often by pieces Waterman, who fought the broad guns in my DIVISION, was perfectly cool and behaved nobly. My men all behaved well, with one exception.

Just before the ship grounded I went over the side to examine the hole under and found it could not be stopped.

I remain, sir, most respectfully, &c.,

JOHN A. PAYNE,

Lieutenant andr.

Captain BENNETT.

[Indorsement.]

This report bears no date. It was forwarded to me by Lieutenant Payne on the 8th of August.

J. W. BENNETT,

Lieutenant, Commanding.

Numbers 22. Report of Lieutenant Edgar L. Lambert, C. S. Navy.

MOBILE, ALA., August 6, 1864.

SIR: I herewith make report of what transpired on board C. S. steamer Gaines as far as I could see from my position on the quarter deck.

At 6. 20 a. m. the ship got under way and stood toward the enemy's fleet. They approached Fort Morgan lashed three abreast, the monitors leading; next came sloop-of-war Hartford (flag-ship), with ships lashed