Sir,

The Rebels pursuing their avowed design of cutting off possible Supply to the Army and Navy, and of destroying what they cannot carry away, burnt a great deal of Hay on Hog Island the 27th of last month; a few hours after they landed on Noddles Island not only to burn the Hay thereon bought for the Army, but also to set fire to a Store house, hired when the Glasgow was ashore, in which I had deposited two large Cargoes of Lumber, Board and Spars, until an Opportunity offered of sending part of each to Halifax. In the Store house was also many other Articles that the Store Schooner could not conveniently hold. The preservation of all these became of great Consequence, not altogether from their intrinsic Value, but from the almost impossibility of replacing them at this Juncture. On Noddles Island, besides the Hay and Stores just mentioned, were above 600 Sheep, several milch Cows and a Number of Horses; the most part private property. It was absolutely requisite to prevent the destruction of the Stores, and if possible the Hay, Sheep &c: therefore upan observing the Rebels landed on Noddles Island, I ordered the Diana to sail immediately between it and the Main, and get up as high as possible to prevent their Escape, and I also directed a party of Marines to be landed for the same purpose: there was no time to be lost, and assistance from the Army could not immediately be had.

The Diana entered the River between three and four in the Afternoon at low water, and proceeded to Hog Island with some interruption from the Rebels on all Sides. The Number on Hog and Noddles Islands were computed at 700 men. Parties of each occasionally attacked the Diana, but they were all obliged to quit Noddles Island without doing the intended Mischief. This effected, as I had ordered Lieut. [Thomas] Graves not to remain in the River upon the Turn of the Tide, he began to come away: It fell calm; the Boats of the Squadron were ordered to tow the Diana: by the close of the Evening the whole Country was alarmed; General [Israel] Putnam had brought I am told full two thousand Men with two Field pieces from Cambridge, with which he lined the Shore and greatly annoyed the Diana. The Marines from the Squadron were landed on the Island with two Pounders from the Cerberus, and the General sent two pieces of Artillery; but it was impossible, tho' in sight of the Fleet, to give the schooner any other Assistance than by Boats to tow her out; her slow progress by this means unavoidably exposed her to the Enemy; the Calm continued, it grew almost dark, the fire of the Rebels increased, and between 11 and 12 at Night she unfortunately got aground upon the Ferry Ways at Winnisimmet, and the Tide ebbing fast it almost instantly became impossible to move her, although every means was tried to get her off; about 3 in the Morning she fell over, so that they were obliged to quit her and go into the Britannia armed Sloop, who had been sent to their Assistance.

In this Sloop they renewed the fight, which had continued with little intermission from 4 o'Clock; but, as the Schooner was by this time dry, the Rebels set her on fire and entirely destroyed her. In the Somersets Boat two Men were killed and two wounded; several were wounded in the Schooner and other Boats.

I transmit the Sentence of a Court Martial held upon the Commander, Officers and Crew of the said Schooner on this occasion. The very honourable Acquittal of the Commander of the Diana by the Court, I make no doubt will be satisfactory to their Lordships. Several of the Members saw part of the Action. The Situation of the Combatants afforded me also an opportunity of hearing their Discharges at each other and for some time of seeing the Battle.

The concurrent Testimony of those immediately concerned, of the nearest Spectators, and indeed the general Voice, authorize me to assure their Lordships of the perseverance and good Conduct of Lieut. Graves the Commander of the Diana in this Action, which lasted nearly eleven hours. I beg you will also represent to their Lordships, that it being very warm Weather, the far greater part of the Officers and people were in their Shirts, that the necessity for quitting the Schooner was urgent, and that it was morally impossible to save a single Article; with the loss of the Kings Schooner therefore they lost every thing they possessed on Board her.

I submit to their Consideration that as the Schooner was bravely defended to the last moment, against a very superior Enemy, the Officers and Crew should be indemnified for their Losses. It will operate as an Encouragement and be an Example to the whole Fleet to defend his Majesty's Ships and Vessels to the last Extremity, even against great Superiority of Numbers; and ought not to be drawn into precedent, except in extraordinary cases like this and the Gaspee's at Rhode Island, The Commander of which received very honorable Marks of their Lordships appreciation of his Conduct, and the Officers and Crew were I am told also severally recompenced.² I am &c.