To prevent the blowing up of the Hatteras from the fire, which was making much progress, I ordered the magazine to be flooded, and afterwards a lee gun was fired.  The Alabama then asked if assistance was desired, to which an affirmative answer was given.

The Hatteras was then going down, and in order to save the lives of my officers and men, I caused the armament on the port side to be thrown overboard.  Had I not done so, I am confident the vessel would have gone down with many brave hearts and valuable lives.  After considerable delay, caused by the report that a steamer was seen coming from Galveston, the Alabama sent us assistance; and I have the pleasure of informing the Department that every living being was conveyed safely from the Hatteras to the Alabama.

Two minutes after leaving the Hatteras, she went down, bow first, with her pennant at the masthead, with all her muskets and stores of every description, the enemy not being able, owing to her rapid sinking, to obtain a single weapon.

The battery upon the Alabama brought into action against the Hatteras numbered nine guns, consisting of six long 32 pounders, one 100 pounder, one 68 pounder, and one 24 pounder rifled gun.  The great superiority of the Alabama, with her powerful battery, and her machinery under the water-line, must be at once recognized by the Department, who are familiar with the construction of the Hatteras, and her total unfitness for a conflict with a regular built vessel of war.

The distance between the Hatteras and the Alabama during the action varied from twenty-five to one hundred yards.  Nearly fifty shots were fired from the Hatteras, and I presume a greater number from the Alabama.

I desire to refer to the efficient and active manner in which Acting-master Porter, executive officer, performed his duty.  The conduct of the Assistant-surgeon, Edward S. Matthews, both during the action and afterwards, in attending to the wounded, demands my unqualified commendation.  I would also bring to the favourable notice of the Department Acting-master’s mate McGrath, temporarily performing duty as gunner.  Owing to the darkness of the night and the peculiar construction of the Hatteras, I am only able to refer to the conduct of those officers who came under my especial attention; but from the character of the contest, and the amount of damage done to the Alabama, I have personally no reason to believe that any officer failed in his duty.

To the men of the Hatteras I cannot give too much praise.  Their enthusiasm and bravery were of the highest order.

I enclose the report of Assistant-surgeon E.S.  Matthews, by which you will observe that five men were wounded and two killed.  The missing, it is hoped, reached the fleet at Galveston.

I shall communicate to the Department, in a separate report, the movements of myself and my command from the time of our transfer to the Alabama until the departure of the earliest mail from this place to the United States.