USS Hatteras ( 1861 ) The very first USS " Hatteras " was a 1 , 126 - ton steamer purchased by the Union Navy at the beginning of the American Civil War . She was outfitted as a gunboat and assigned to the Union blockade of the ports and waterways of the Confederate States of America . During an engagement with the disguised Confederate commerce raider , CSS " Alabama " , she was taken by surprise and was sunk off the coast of Galveston , Texas . The wreck site is one of the few listed on the National Register of Historic Places because of its location away from destructive surf and because of the ship ' s side - wheel design , which marks the transition between wooden sailing ships and steam - powered ships . " Hatteras " ( formerly " St . Mary " ) was purchased by the U . S . Navy from Harlan and Hollingsworth of Wilmington , Delaware on 25 September 1861 . She was fitted out at the Philadelphia Navy Yard and commissioned in October 1861 , Commander George F . Emmons in command . Civil War service . " Hatteras " sailed for Key West , Florida on 5 November 1861 , arriving there on 13 November to join the South Atlantic Blockading Squadron to choke off the South ' s economic lifeline as part of president Lincoln ' s Anaconda Plan . After blockade duty off Apalachicola , Florida , she was reassigned to Cedar Key , Florida , reaching there on 7 January 1862 . Nine days later , " Hatteras " made a highly successful raid on the Cedar Keys harbor , burning seven small would - be blockade runner s loaded with turpentine and cotton at the Florida Railroad wharf ( an important Southern railroad terminus ) , several flat - cars , and various buildings . To cap this day ' s work , " Hatteras " also captured 14 of the 22 - man garrison stationed there , including their commanding officer . Such unceasing attack from the sea on any point along her long coastline and inland waterways cost the South dearly in losses , economic disruption , and dispersion of defense strength . After this exploit , " Hatteras " was transferred to the Gulf Blockading Squadron and arrived off Berwick , Louisiana on 26 January . The next day , she engaged CSS " Mobile " , but failed to do any serious damage when the light - draft ship withdrew to the safety of shallow water . Nevertheless , the Gulf of Mexico proved to be a profitable hunting ground for " Hatteras " , as in less than a year , she captured seven blockade runners with assorted cargos of cotton , sugar , and other goods the South was desperately striving to export for gold or much needed trade goods . These captures netted " Hatteras " , among other things , some 534 bales of valuable cotton . Commander Emmons stationed four of his own men on board one prize ship , the sloop " Poody " , and rechristened her " Hatteras Jr " . , turning the erstwhile blockade runner into a unit of the Union ' s Gulf Blockading Squadron . Other Confederate ships taken by " Hatteras " as prizes included : steamer " Indian No . 2 " , " schooner " " Magnolia " , steamer " Governor A . Mouton " , schooner " Sarah " , sloop " Elizabeth " , and brig " Josephine " . The majority of these ships were captured off Vermilion Bay , Louisiana , as they ran toward either Havana , Cuba , or the Sabine River area of Texas . However , her illustrious career was cut short in early 1863 , not long after she was ordered to join the blockading squadron under Rear Admiral David Farragut , who was attempting to retake the key Texas port of Galveston . Under a new skipper , Commander Homer C . Blake , who had relieved Captain Emmons in November 1862 , " Hatteras " joined Farragut ' s squadron off Galveston on 6 January 1863 . Encounter with the CSS " Alabama " . As the blockading fleet lay to off the coast near Galveston on the afternoon of 11 January 1863 , a set of sails was sighted just over the horizon and " Hatteras " was ordered to give chase . She took off in pursuit of the unknown ship at about 15 : 00 ( 3 : 00 PM ) , and for the next four hours followed her as she ventured closer and closer to shore . Finally , as dusk was falling , " Hatteras " came within hailing distance of the square - rigged ship . Commander Blake demanded her identity . " Her Britannic Majaesty ' s Ship Petrel , " came the reply . Still suspicious , Blake ordered one of " Hatteras " boats to inspect this " Britisher . " Scarcely had the longboat pulled away from " Hatteras " than a new reply to Blake ' s question rang through the night . " We are the CSS " Alabama " . " With this , the famed Confederate raider commanded by Raphael Semmes struck the Union Jack the raider had been flying , raising the Confederate Stars and Bars , and began raking " Hatteras " with her heavy cannon . Through the gloom , for about 20 minutes , the two ships exchanged heavy fire at distances ranging from . The flashes of the guns and their rumbling were heard in the Union squadron some away , and the cruiser was dispatched to investigate and render aid if needed . But " Hatteras " had already been badly holed in two places and was on fire and beginning to sink . Captain Blake ordered the magazines flooded to prevent explosion and reluctantly fired a single bow gun , indicating surrender and a need for assistance . " Alabama " , promptly sent over her boats to help remove " Hatteras " ' crew and wounded , and the last boatload of men had barely pulled away when the Union blockader sank , some 45 minutes after the beginning of the action . Of " Hatteras " crew of 126 , two had been killed and five wounded . Six escaped back to the squadron in the boat originally sent out to board and investigate " HBMS Petrel " , and the remainder , including Captain Blake , were taken to Port Royal , Jamaica , and from there paroled back to the United States ; " Alabama " suffered only 2 wounded . When " Brooklyn " reached the site of the battle early the following morning , she found the hulk of " Hatteras " upright in the water about south of Galveston Light . Only " Hatteras " masts reached out of water , and from the topmast the U . S . Navy commissioning pennant was still waving in the breeze . Even after surrendering , she had not struck her colors . Present day . The hull of " Hatteras " rests in approximately of water off of Galveston , Texas and is buried under about of sand . Her steam engine and two iron paddle wheels remain on the ocean bottom . The wreck is monitored to ensure that it is not damaged by oil and gas development in the area . The wreck of " Hatteras " is the property of the United States Navy , though the Texas Historical Commission , Texas A & M University at Galveston and the federal Minerals Management Service cooperate in preserving the important historical site . At one time , local treasure hunters filed suit claiming the right to salvage the ship , but the courts found in favor of the United States government , in one of the few times courts have ruled in favor of historic preservation of a shipwreck site versus commercial interests .