On the night of the 9th of May, the rebels, believing that an attack was about to be made by the Union fleet, under Captain, now Commodore Porter, set fire to the Pensacola Navy Yard, Fort McRea, the Naval Hospital, Warrington, and Pensacola itself. General Arnold, divining their destructive object, immediately opened fire from Fort Pickens, and kept up a heavy bombardment, for five hours, thus preventing the rebels from fulfilling their plan, which contemplated the destruction of the entire town. A demand was then made for the surrender of Pensacola, and, Mayor Bode complying, the Union forces took possession of the place, capturing a quantity of valuable lumber, many thousand dollars’ worth of oil, and rebel arms and equipments. The enemy, however, had succeeded in destroying a good deal of property, and had then retired, about one thousand strong, led by General Bragg, to a camp, five miles outside of Mobile.

On the 12th of May, immediately following the occupation of this point, President Lincoln issued a proclamation, announcing the ports of Beaufort, Port Royal, and New Orleans, to be open to commerce under the laws of the United States.