During 1864, rumors of Confederate conspiracies in Canada were heard again. In March, Secretary of the Navy Gideon Welles ordered "Michigan" to be "prepared for active service as soon as the ice will permit." In the autumn, the Confederates finally struck. Led by Acting Master John Yates Beall, 20 Confederates embarked on the steamer as passengers and soon seized her. They next captured and burned the steamer . Meanwhile, Captain Charles H. Cole, CSA, a Confederate agent in the Lake Erie region, was attempting to gain the trust of "Michigan"s officers as the "Michigan" lay off Johnson's Island helping to guard Confederate prisoners. However, Commander Carter discovered Coles and had him arrested before Beall reached Johnson's Island on "Philo Parsons". When the prearranged signals from shore were not made, Beall reluctantly abandoned his plan and retired to Sandwich (now Windsor, Ontario) where he stripped and burned "Philo Parsons".