At 7.05 A.M. all hands abandoned the _Californian_ and came on board the _Corsair_. The captain informed me that he could do nothing as the engine-room was filling with water. I told him that we would attempt to tow. He returned to the _Californian_ with a boat’s crew, taking the end of our tow-line with him. As the _Californian_ was down by the head and we had a fair wind, our tow-line was made fast to the stern. At 7.55 A.M. we started ahead. At 8.20 A.M. it was found that we could not handle the ship by the stern; stopped and attempted to take the line forward. Before it could be made fast, the ship settled so rapidly that the crew was obliged to abandon her, and we hauled the tow-line on board. At 8.54 A.M. the bow of the _Californian_ went down, apparently resting on bottom. At 9.04 A.M. the stern disappeared and _Corsair_ proceeded. While waiting we hoisted two of the _Californian’s_ boats on board. During these operations one French destroyer stood by. It is believed by the Commanding Officer of the _Californian_ that the damage was caused by a mine. Nothing was seen. No radio message was sent as antennæ was disabled by the explosion. There were no casualties. The lost ship was commanded by Lieutenant Commander D. Mahlman, U.S.N.R.F., and was under charter to the United States Government. To the Board of Inquiry convened for the purpose, he presented his own story of the disaster, which was as follows: At 4.50 A.M. felt an explosion amidships. Stopped the ship and ordered all hands to stand by the boats. The Engineer Officer reported water and oil leaking into the forward stoke hold. Sounded bilges and found three feet in No. 1; No. 2 full; and Nos. 4 and 5 empty. On examining the engine-room and stoke hold again, I found the water over the floor plates, the engineers meanwhile having the pumps working on the stoke hold bilge. The water was steadily gaining so I ordered the boats to be lowered and the ship abandoned. Sent two boats away to the U.S.S. _Corsair_ which was standing by, while I remained on board with Ensign Schwartz and boat’s crew to investigate further if it were possible to do anything to keep the ship afloat, the pumps being worked to the full capacity continually. Soon afterwards two boats from the _Corsair_ returned to the ship with some of the officers and crew.