"Sir: I have the honor to report that at 3 a.m., of this date, and while drifting in three and a half fathoms water, Bald Head Light bearing east, saw white water near the beach to the south and westward, which I supposed to be a steamer. I immediately steamed ahead at full speed toward the beach in order to cut her off.
"On near approach I discovered her to be a side-wheel steamer, steering for the bar.
"As he crossed my bow I rounded to in his wake and discharged at him my starboard 8-inch gun, loaded with one 5-second shell and stand of grape, and kept firing my 30-pound rifle as I continued the chase, until 3.30 a.m. she struck on the bar. I immediately ordered the first and second cutters to board and fire her, the former under command of Acting Master's Mate William Moody, the latter under charge of Acting Third Assistant Engineer Thomas W. Hineline.
"On arrival on board they found that two boats, with their crews, had escaped to the shore.
"They, however, succeeded in capturing twenty-nine of the crew, including the captain and most of the officers, together with three passengers.
"They fired her in several places, and she continued to burn until 10 a.m., when she was boarded from the shore. At daylight Fort Caswell and the adjacent batteries opened fire on our boats with shot and shell, which compelled them to return without accomplishing her destruction.
"She proved to be the Georgiana McCaw of Liverpool, 700 tons burden, from Nassau, bound to Wilmington, N.C.
"Her cargo consists of about 60 tons provisions, etc.
"I would add, sir, that too much credit can not be awarded to Acting Master's Mate William Moody and Acting Third Assistant Engineer Thomas W. Hineline for their perseverance and energy displayed, and their cool and gallant conduct while under fire of the enemy."