The CSS Shenandoah

On June 27, 1865, he learned from a prize, the Susan & Abigail, that General Robert E. Lee had surrendered his Army of Northern Virginia. Her captain produced a San Francisco newspaper reporting the flight from Richmond, Virginia, of the Confederate Government 10 weeks previously. However, the newspaper also contained Confederate President Jefferson Davis's proclamation that the "war would be carried on with re-newed vigor."[9] Waddell then captured 10 more whalers in the space of 7 hours just below the Arctic Circle.

On August 3, 1865, Waddell finally learned of the war's end when he met at sea the Liverpool barque Barracouta, which was bound for San Francisco.[10] He received the devastating news of the surrender of General Joseph E. Johnston's army on April 26, Kirby Smith's army's surrender on May 26, and crucially the capture of President Davis and a part of his cabinet. Captain Waddell then knew the war was over.[9]

Captain Waddell lowered his Confederate flag, and the CSS Shenandoah underwent physical alteration. Her guns were dismounted and stored below deck, and her hull was painted to look like an ordinary merchant vessel.