themselves capable of running their own ships in without resorting to the aid of pilots, I do not see how we can apply a remedy, though we may punish. When abroad they are out of our power so long as we are unrecognized, and they defy us. When here we can confine and conscript them, but we cannot confiscate their earnings; they get them in advance and deposit them abroad.

Very respectfully,

W. H. C. WHITING,

Major-General.

[Indorsement.]

JANUARY 8, 1865.

ASSISTANT SECRETARY:

Could not these pilots (as condition of not being conscribed or being allowed to act as pilots) be placed under heavy bonds as to return and rates of charges, &c. What do you advise?

J. A. S.,

Secretary.

[Inclosure.]

FORT CASWELL, December 31, 1864.

General L. HEBERT,

Smithville, N. C.:

GENERAL: It becomes my duty to report to you that Julius Dozier, an enrolled pilot, who was assigned to the Agnes E. Fry under my command, informed me that unless I paid him the highest price given to pilots for similar services, and that, too, before leaving Nassau, he would refuse to return in the vessel. I was left to ascertain what this sum, was obliged to call upon Major Hayliger, the Government agent at Bermuda, to advance the sum of $3,500 in specie to Dozier, or be compelled to await the arrival of another pilot from the Confederacy-a delay prejudicial in the highest degree to the interests of the Government and of our cause, as the vessel was freighted with provisions for the Army. I am satisfied that the majority of the pilots reject the claim to their services implied in their enrolment, and can only be induced to perform their duty by the payment aborad of large sums of money in coin, professing a disregard for the authority by which they are assigned to certain vessels, and boasting of the immunity which the protection of foreign laws affords. The money made in this way, being invested abroad renders them independent, and becomes a source of corruption, which it requires a severe example to repress. In the case of the vessel under my command, she was run on shore whilst in the hands of the pilot, ad continue there, and he holds possession of the money extorted from me under a threat for a service not performed.

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

JOSEPH FRY,

Lieutenant-Commander, C. S. Navy.

[First indorsement.]

HDQRS. DEFENSES MOUTH OF CAPE FEAR RIVER,
Smithville, January 1, 1865.

Respectfully forwarded for action at district headquarters.

Pilot Dozier has been arrested.

LOUIS HEBERT,

Brigadier-General.