On the 16th of October, as the brigantine and schooner were entering the Bay of Fundy, Captain Vergor noticed, at 11 in the morning, an English frigate, which put on all sail and came after him. A quarter of an hour afterwards the frigate fired a cannon shot and displayed her flag. Vergor immediately hoisted his own flag and responded with a cannon shot, continuing on his way. The English frigate continued the chase and a half hour later fired a second shot followed by a third, which went through the little top-mast of the St. Francis. Vergor then made preparations for the combat, the frigate continuing to approach and firing four cannon shots at his sails. When within speaking distance Vergor called through his trumpet that he was in command of a ship of the King of France carrying provisions and munitions to the troops of his majesty. The English captain in reply ordered him to lay to or he would sink him. Vergor repeated his announcement in English, but, for answer the frigate discharged a volley of all her guns damaging the ship and killing two of his men. He in turn now fell upon the frigate, discharging all his guns and musketry. The fight lasted nearly five hours, at the expiration of which the St. Francis was so crippled by the loss of her mainmast and injuries to her sails and rigging that Vergor was obliged to surrender. His long boat having been rendered unserviceable, the English captain sent his own to convey him on board. Vergor found the frigate to be the Albany, of 14 guns and 28 swivel guns and a crew of 120 men, commanded by Captain Rous. The Albany did not pursue the schooner, which proceeded to St. John, but sailed for Halifax with her prize, where she arrived three days later. Vergor was sent on shore and confined to a room in the house of Governor Cornwallis. The governor treated him courteously, heard his version of the affair and called a council meeting the next day to inquire into the circumstances of the case. Vergor's official report conveys the idea that Cornwallis was rather doubtful as to whether Rous had acted in a legitimate manner. The council held five or six meetings without coming to any decision. Meanwhile, with the governor's approval, Vergor had a new main-mast cut and drawn from the woods by the crew of the St. Francis and arrangements were made to repair the damaged sails and shrouds. However the matter was soon afterwards taken out of Cornwallis' hands by Captain Rous, who brought the case before the Admiralty Court, where the St. Francis was confiscated for engaging in illicit commerce in the province of his Britannic Majesty.