"Albatross" made her first capture on 18 July, when a party from the steamer boarded and seized the schooner "Velasco" of Galveston, Texas, which was carrying false papers while sailing under the Lone Star flag from Matanzas, Cuba, with a cargo of sugar. "Albatross" took the prize to Hampton Roads and turned her over to Flag Officer Stringham on 20 July. The next day, while returning to her station, "Albatross" exchanged fire with the North Carolina steamer "Beaufort" lying off Bodie Island and forced the Southern ship to retire through Oregon Inlet to safety in Pamlico Sound.