(Report of Acting Rear Admiral Lee, U.S. Navy.) "U.S. Flagship 'Minnesota,' "Off Newport News, Va., "_November 12, 1863_. "Sir: In addition to the captures of the _Margaret and Jessie_ and the _Cornubia_, or _Lady Davis_, detailed in my Nos. 948 and 949 of this date, I have the gratification of presenting to the department the details of the capture of the rebel blockade runner _Ella and Annie_, off Wilmington. "At 5.30 o'clock on the morning of the 9th instant, the _Niphon_, returning from an unsuccessful chase and steaming along the beach to the northward of New Inlet, made another steamer near Masonboro Inlet coming down along the shore. The stranger finding himself intercepted, put his helm up and endeavored to run down the _Niphon_. This attempt was partly avoided, though the _Niphon_ was struck about the fore rigging, and her bowsprit, stem and starboard boats carried away. At the moment of collision Acting Master Breck reports he opened upon the enemy with shell and canister and carried the prize by boarding. A keg of powder and slow match were found ready to blow her up. "The _Ella and Annie_ is represented to be a vessel of 905 tons burden, in good order, with the exception of some small damages from shell and grape. "Her cargo is chiefly composed of 480 sacks of salt, 500 sacks of saltpeter, 281 cases of Austrian rifles, 500 barrels of beef, 42 cases of paper, etc. "In the collision three men on board the _Niphon_ and four on board the _Ella and Annie_ were slightly injured. "Inclosed is a list of passengers from this prize, brought up by the _New Berne_ (thirty-eight in number) and sent to New York in her. "The capture seems to have been well and gallantly made by Acting Master Breck. Captain Ridgely, senior officer, commends his spirit and promptness. I hope that the department, in view of this especial and other good service on the part of Acting Master Breck, will favorably consider my application for his promotion. "The _Ella and Annie_, I am informed, was built at Wilmington, Del., is of light draft, fast, and would, I think, be very convenient for general purposes in this squadron, being available either for inside or outside service. I would suggest that she be purchased by Government and sent to this squadron, if, after examination, she be found suitable. "I have the honor to be, Sir, "Very respectfully yours, "S.P. Lee, "_Acting Rear Admiral_, "_Comdg. North Atlantic Blockading Squadron_. "Hon. Gideon Welles, "_Secretary of the Navy, Washington, D.C._" (Report of Acting Master Breck, U.S. Navy, Commanding U.S.S. _Niphon_.) "U.S.S. 'Niphon,' "Off New Inlet, "_November 9, 1863_.