guard came from that vessel, demanding that the custom-house should be given up or it would be entered by force. Fifteen minutes were allowed for Lieutenant Merryman to make his decision. It was stated at the time that the guns of the cutteer had beens hotted, and if any resistance was made it was understood that the custom-house would be shelled by the guns of the Shurbrick. Under these circumstances Lieutenant Merryman, in order to prevent bloodshed, turned over the papers, &c., under protest, to Lieutenant Wilson, commander of the cutter, who receipted for the same, and they were removed on board the Shurbrick. To fire upon the custom-house, in the position in which the Shubrick then lay, was equivalent to firing into the town, as the principal street of the village was directly in rear of the custom-house. Much excitement was caused in Port Townsend by the threatening attitude assumed by the cutter, the citizens declaring that they had taken no part whatever in the matter, and whatever was the difficulty occurring between the officers of the service, it was difficult to see the properitety of punishing innocent persons therefor. An express was immediately sent to the Governor of the Territory, reporting to circumstances and asking for redress, the citizens of Port Townsend avowing their willingness, if they had committed any wrong, to be punsihed for it, but an unwillingness, if they were not to blame, to submit to what they considered an outrage on their rights as loyal American citizens.

Governor Pickering, soon after he was made aware of the serious condition of affairs at Port Townsend, repaired to that place, accompaied by his private secretary (Mr. Evans), the U. S. marshal from Olympia, and also Mr. McGill, U. S. commissioner and late Acting Governor of the Territory. On arriving at Fort Steilacoom, on his way to Port Townsend, at the urgent solicitation of the Governor, the commanding officer at Fort Steilacoom joined the Governor's party and accompanied them to the Port. We left Fort Steilacoom on the steamer Eliza Anderson on the morning of the 11th instant and arrived at Port Townsend the same evening. Learning that Lieutenant Merryman had left for Victoria, Goivernor Pickering, together with his private secretary, in order to have a conference with Lieutenant Merryman, proceeded on in the Eliza Anderson, leaving the remainder of the party at Port Townsend to await the arrival of the Shubrick, w hcih was hourly expected with t he mails from Olympia. Meanwhile an investigation in regard tot the alleged outrage was had before the U. S. commisioner, and on the affidavits of several citizens that the guns of the Shubrick had been shotted and directed against the habitations of Port Townsend with an intent to kill, a warrant was issued by the commissionst of the collector, Victor Smith (known to be on board the Shubrick), and also the commander of the cutter, Lieutenant Wilson. This warrant was placed in the hands of the U. S. marshal, who was directed, on the arrival of the cutter, toi board the Shubrick, arrest the individuals above mentioned, and bring them before the commissioner, who was awaiting their arrival on shore. Soon after dark the signal lights of the Shubrick denoted the approach of that cutter. She, however, did not enter the port, but the U. S. mail was sent on shore in one of her boats, the cutter awaiting its return at a distance of a mile or more from the usual landing. Perceiving that it was not the intention to bring the cutter to the wharf, the marshal summoned a posse to accompany him in a boat for the purpose of boarding her. Before the mails had been exchanged the marshal returend to Port Townsend, reporting to the commissioner that he had boarded the cutter and