p.2 Milwaukie, Sept. 27th - The propeller Forest City, from Buffalo, with 400 tons of merchandise and 63 passengers, came into collision with the schooner Asia, bound from Chicago to Buffalo, with 16,000 bushels of corn, near Grand Traverse, on Thursday last.
Both vessels sank, but passengers and crew were all saved in boats, and were picked up by the schooner Hamalea, arrived here this morning. The Asia was insured for $23,250 in the Star Company of Ogdensburg, and $3,000 in the Cleveland Commercial. She was owned by Messrs. Spangler & Co., of Cleveland.
The propreller was partially insured, but where is unknown. She was owned by Messrs. Davis, Sutton and others of Buffalo.
The brig H. Seymour of Buffalo is ashore high and dry north of Manitou.