Early last Friday morning [May 17], the Franklin schooner, one of the Continental cruizers, commanded by Capt. James Mugford, of Marblehead, fell in with one of the enemy's transport ships from Cork, bound directly into this harbour, the Captain not knowing that the place had been evacuated by the British fleet and army. Notwithstanding she appeared to be an armed ship, and was in sight of the enemy's men of war laying in Nantasket, Capt. Mugford resolutely bore down upon her, and took her without opposition. She mounted 6 carriage guns, a number of swivels, and had on board 18 men. The Franklin, at that time, had only 21 men. Capt. Mugford, determining to bring her into this harbour, the inhabitants, on leaving their respective places of worship after forenoon's service (it being the day of the Continental fast) had the pleasure of seeing the most valuable prize, taken since the commencement of the war, entering the harbour. But it being ebb-tide, she run ashore in Pulling-Point gut, where she lay till the ensuing night. As her cargo was of almost inestimable value to these colonies, it was thought prudent to bring up to town the greatest part of it in boats; and a large number being immediately dispatched, the same was soon safely landed and properly deposited.

The ship [Hope] is about 300 tons burthen, Alexander Lumsdale, Master. She had 5 weeks passage; and sailed from Cork in company with 12 or 13 other transports, all bound to this place, from which she parted a few days before she was taken. The others, it is concluded, hearing of the evacuation of the town from one of their cruizers, steered for Halifax. The Captain brings no material advices.

The following is an inventory of the cargo of the above-mentioned prize ship, taken and brought in here last Friday, viz.

Handsaws, whet and set, 6; tennant do. 6; turning do. 6; broad axes, helved, 6; adzes, h[e]lved, 6; penmauls, helved, 6; hammers, claw 6; rivetting 6; chizzels, broad-helved 6, scribing 6, heading 12, paring 6, firmer 36, mortice 24, and large 12, Gouges, helved, f[o]rmer 36, p[ac]king 6, and trunnion 12; piercers or pads, stocks and springs, 6; bitts for do. 72; draw borers, helved, 24; pairs of pincers 6; iron squares 6; brass chalk line, rolls 6; chalk line, knots 12; iron compasses, pairs 6; engineers augers, 8 to a set, sets 6; thrifts for do. 48; two feet rules 6; black lead pencils, dozens 6; stones, rub 6, rag, 6, Turkey oil 6; rasps 12; saw sets 6; files for do. 18; gimblets, sorted 124, large spike 12; glue 12 lb. copper glue pots 6; fish skins 6; mallets 6; betties, or small iron crows, 6; planes of all sorts 132; Hambro' line, skains 50; spikes, from 5 to 8 and an half inch, 29C. 3qr. 0 lb. nails, 24d. 38, 500; pickaxes with helves 500; hammers with helves: sledge, 25; augurs with thrifts 75:

Office of Ordnance, 4th Nov. 1775.

The enemy, on board the men of war below, intolerably vexed and chagrined that the above ship should be taken and unloaded in their open view, formed a design of wreaking their vengeance on the gallant Capt. Mugford, who took her.¹ The Sunday following [May 19], Capt. Mugford, in company with Capt. [Joseph] Cunningham, in the Lady Washington, a small privateer armed with swivels, blunderbusses, and musquets, fell down in order to go out in the Bay. The enemy observed their sailing, and fitted out a fleet of boats for the purpose of surprizing and taking them in the night; and the Franklin's running aground in the Gut, gave them a good opportunity for executing their plan. The Lady Washington came to anchor near Capt. Mugford; and between 9 and 10 o'clock he discovered a number of boats, which he hailed, and received for answer, that they were from Boston. He ordered them to keep off, or he would fire upon them. They begged him, for God's sake, not to fire, for they were going on board him. Capt. Mugford instantly fired, and was followed by all his men; and cutting his cable, brought his broadside to bear, when he discharged his cannon, loaded with musquet ball, directly in upon them. Before the cannon could be charged a second time, two or three boats were along side, each of them supposed to have as many men on board as the Franklin, which were only 21, including officers. By the best accounts, there were not less than 13 boats in all, many of them armed with swivels, and having on board, at the lowest computation, 200 men. ー Capt. Mugford and his men plied those along side so closely, with fire arms and spears, and with such intrepedity, activity and success, that two boats were soon sunk, and all the men either killed or drowned. But while the heroic Mugford, with out-stretched arms, was righteously dealing death and destruction to our base and unnatural enemies, he received a fatal ball in his body, which in a few minutes put a period to a life, from which, had it been spared, his oppressed country would undoubtedly have reaped very eminent advantages. After our brave men had maintained this unequal contest for about half an hour, the enemy thought proper to retire. The carnage among them must have been great; for, besides the two boat-loads killed and drowned, many were doubtless killed and wounded on board the others. Great execution was done by the spears. One man, with that weapon, is positive of having killed nine of the enemy.

The number of boats which attacked the Franklin was about 8 or 9. The remainder, to the number of 4 or 5, at the same time attacked Capt. Cunningham, in the Lady Washington, who then had on board only 6 men, besides himself. This brave little company gave the boats such a warm reception, that the enemy were soon glad to give over the contest, after suffering, it is thought, considerable loss.

The body of one of the Marines, killed in the above engagement, and one of the enemy's 13-oar'd barges, have been taken up at Chelsea.

The remains of Capt. Mugford have been carried to Marblehead for internment. No other life, on our part, was lost.