On the occasion of June 12, as soon as the submarine came to the surface and opened fire, _Prize_ as usual, after the necessary intentional bungling, sent away her boat, which took up a position half a mile away on the starboard bow. The enemy kept on firing, and at 11.30 the schooner was hit twice, so three minutes later, as the enemy was turning away to increase the range, Sanders ordered the screens to be lowered, and opened fire from both starboard guns at 1,800 yards. One shell seemed to hit, and the enemy immediately dived. But two hours later a submarine was seen on the surface 4 miles away on the starboard quarter, and remained in sight for a quarter of an hour. Then next morning at 6.30 a submarine was sighted stopped, 1-1/2 miles ahead on the surface. Five minutes later he dived, but came up after four minutes 1,500 yards off on the starboard bow. At 6.43 he again dived, and was not seen again. Probably each of these three appearances was the same submarine. On the first he was repulsed, on the second he would have a perfect opportunity of making a detailed sketch, on the third he may have been intending to attack by torpedo, but the westerly swell from the Atlantic possibly interfered with accurate firing. But, apart from all surmise, it is absolutely evident that the enemy was able to obtain a picture of the schooner, which beyond all doubt would establish her identity on a future occasion. The importance of this will presently be seen. For this action of June 12 Lieut.-Commander Sanders was given a D.S.O. to wear with his V.C. He had had a very trying time. When, at 11.30, the German shells had hit, the falls of the port davit had been shot away, and another shot had struck the ship on the starboard side amidships just on the top of the sheer strake plate. This shell had exploded and caused the ship to leak. Lieut.-Commander Sanders, who was lying concealed between the mast and the hatch, put up his arms to shield his face from the burst fragments and so received a piece of shell in his right arm above the wrist. In addition, the force of the explosion knocked him over and hurled him to the other side of the deck, where he was picked up by Skipper Mead. In spite of the pain and the shock, Sanders was just sufficiently conscious to give the order ‘Action’ at 11.33, when screens were downed, White Ensign run up, and fire was returned. The schooner came back to her base, her gallant captain recovered from his wound, and two months later we find her operating in the Atlantic again to the north-west of the N.W. Irish coast. On this occasion she was cruising with one of our D-class submarines, the idea being that when the enemy came along _Prize_ would be attacked and heave-to in the customary manner, while the British submarine would stealthily make for the enemy and torpedo him whilst, so to speak, he was not looking.