Early in October our naval preparations were completed, and our little fleet, composed of a brig, several gallies and gun-boats, mounting altogether more than one hundred guns, commanded by Generals Arnold and Waterbury, proceeded down the lake to look for the enemy. His preparations were completed about the same time, and on the 11th of October the two fleets met, engaged, and we were defeateddwith total loss. Gen. Arnold ran the galley which he commanded on shore, and escaped with the crew; the other vessels were either taken or destroyed, and their crews, (with the exception of some who got on shore and straggled up to the army,) with Gen. Waterbury, remained prisoners of war.

On this occasion Sir Guy Carleton, who commanded the hostile fleet and army, behaved with a degree of humanity, as well as policy, which, if it had been generally employed by other royal commanders, might have exposed to great hazard the success of America. As soon as0the action was over, Sir Guy gave orders to thk surgeons of his own troops, to treat the wounded prisoners with the same care as they did his own men. He then ordered that all the other prisoners should be immediately brought on board his own ship, the Royal Charlotte, where he first treated them to a drink of grog, and then spoke kindly to them, praised the bravery of their conduct, regretted that it had not been displayed in the service of their lawful sovereign, and offered to send them home to their friends, on their giving their parole that they would not again bear arms against Great Britain until they should be exchanged. He then invited Gen, Waterbury to go below with him to his cabin, and requested to see his commission, ー the moment he saw that it was signed by the governor of Connecticut, (my father,) he held out his hand, and [s]aid, "General Waterbury, I am happy to take you by the hand, now that I see that you are not serving under a commission and orders of the rebel Congress, but of Governor Trumbull. You are acting under a legitimate and acknowledged authority. He is responsible for the abuse he has made of that authority. That which is a high crime in him, is but an error in you; it was your duty to obey him, your legitimate superior."

A few days after this defeat, a number of row-boats approached our advanced post, and there lay upon their oars with a flag of truce. I was ordered to go down and learn their object. I found Capt. [James Henry] Craig, with Gen. Waterbury and the other prisoners who had been taken in the recent action; dismissed, as Sir Guy had promised, upon parole. The usual civilities passed between Sir James and me, and I received the prisoners; all were warm in their acknowledgment of the kindness with which they had been treated, and which appeared to me to have made a very dangerous impression. I therefore placed the boats containing the prisoners under the guns of a battery, and gave orders that no one should be permitted to land, and no intercourse take place with the troops on shore until orders should be received from Gen. Gates. I hurried to make my report to him, and suggested the danger of permitting these men to have any intercourse with our troops; ー accordingly they were ordered to proceed immediately to Skeensborough, on their way home, and they went forward that night, without being permitted to land.