Schooner and cotton burnt.
--We learn from the Galveston News that two boats crews from the Federal steamer Montgomery, boarded schooner Columbia, inside Galveston bar, laden with 275 bales of cotton, and captured her. They then attempted to warp her out; but failing, they took the Captain, crew, and passengers, ten in all, aboard their boats, and set the schooner on fire. The boats, together with the sloop and small boat of Capt. Davidson were taken to the bar, where they were kept all night.About nine o'clock the flames burst out on the schooner, and lit up the whole horizon.--She burnt all night, and in the morning tragments of cotton were afloat in the vicinity.--The vessel and cargo are a total loss. They were the property of Messrs. B. & D. G. Mills.
On the next day Lieut. Pickering, of the Montgomery, who was in charge of the boats, told Capt. Davidson that he could take his small sloop and boat and go ashore with his crew and passengers — a privilege which they willingly took.