Shortly after 11 A.M. we made out a vessel, and on nearer approach we saw there were three vessels, one a large liner, the others colliers. The latter had derricks topped, and were probably working when we hove in sight. Before we had raised their hulls they had separated, and were making off in different directions. The large vessel was, apparently, about our own size, with two funnels painted to represent a Castle liner. After running away for a little while, the large steamer turned to starboard and headed towards us. She was then steering about south, and we were steering about south-west. The weather was fine and sunny, with a moderate breeze from the north-east. Our speed was 16 knots, and his apparently about 18. At 8,500 yards we fired a shot across his bows, and he immediately opened fire from his starboard after gun. We opened with all the port guns, and the firing became general. We were now well within range, and most of his shots went over. Consequently our rigging, masts, funnels, derricks, and ventilators all suffered. He was then well open on our port side. All our port guns and his starboard guns engaged, and firing became rapid. Owing to the decreasing range, his machine guns were becoming particularly dangerous, so the ship was turned away from him and the range opened. The ship continued to turn until the starboard battery was engaged. Two of our hits were seen to take his deck steam pipes. He was well on fire forward, and had a slight list to starboard. One of his shells had passed through the cabin, under our forebridge, and although it did not burst, it started a fire which became rapidly worse, no water being available owing to the fire main having been shot through. The chemical fire extinguishers proving of very little use, the fire got such a firm hold that the forebridge had to be abandoned, and the ship conned from aft, using the lower steering position. At this time the enemy was on our starboard, with a heavy list to starboard, and at 1.50 P.M., or one hour and forty minutes from the firing of the first shot, she capsized to starboard and went down bows first, with colours flying. It was some time before we got the fire under, which necessitated keeping the ship before the wind, and consequently we could not go to the assistance of the survivors, some of whom got away in boats and were picked up by one of the colliers. The enemy before sinking was in wireless communication with some German vessel, and as smoke was seen in the northern horizon and the signalman thought he could make out a cruiser's funnels, we went off full speed to the southward. When we were in touch with the _Cornwall_ all we asked him was to meet us, as the ship was unseaworthy and practically all communications and navigational instruments were destroyed, rendering the conning and navigation of the ship difficult and uncertain.