SIR: * * * We left Juneau City on the 20th, and touching again at Killisnoo, arrived at Sitka on the 21st.
During the afternoon of the 23d, the superintendent of the fishing station at Killisnoo reached Sitka with his family, with the following report, and requesting protection from the United States steamer Adams. On the 22d of October, while the company's whaling-boat was fishing in Hootsnoo Lagoon, one of the bombs used in whaling accidentally exploded, killing one of the native crew, who happened to hold the rank of medicine man or shaman among the tribe. For this man the natives demanded two hundred blankets, at the same time seizing the whaling-boats with their equipments, and holding two of the white men prisoners until the amount should be paid. In case the demand was not met by the company, the natives threatened to burn the company's store and buildings, destroy the boats, and put to death the white prisoners.
Acting upon this information, Capt. E. C. Merriman, of the Adams, placed on board the company's steamer Favorite some marines, and, as the Adams was thought too large for the work, the Corwin was tendered, and Captain Merriman, together with the collector of customs, proceeded upon the Corwin to the scene of the disturbance.
Remaining at Lindenberg Harbor that night, we reached Killisnoo early on the morning of the 25th. The following morning we proceeded to Hootsnoo Lagoon, and came to anchor off the Indian village located there.
Immediately we anchored the white men were released, some of the ringleading Indians captured, and the release of the property effected. In addition to this, as a punishment and as a guarantee for future good behavior, Captain Merriman demanded twice the number of blankets demanded by the Indians, and threatened, in case of refusal, to destroy their canoes and villages. Refusing to pay the amount and remaining defiant, their canoes, to the number of forty, were taken and destroyed, after having selected those which belonged to the Indians who had remained friendly to the white men. Remaining unsubdued, their summer camp at this place was burned. Weighing anchor we steamed out of the lagoon, and at two o'clock hove to off the village of Hootsnoo and proceeded to shell the town. After shelling the village the marines were landed under cover of the guns, and they, setting fire to the houses, destroyed the entire village, with the exception of the friendly Indians.
After the boats returned we steamed down to Killisnoo, and, remaining there during the night, reached Sitka the following afternoon, with twenty-two seamen of the Adams, whom we had received on board for transportation. * * *
I am, very respectfully, your obedient servant,
M. A. HEALY,
First Lieutenant, U.S.R.M., Commanding.