The ship was a sidewheel paddle steamer built at New Albany, Indiana, in 1860, and operated out of New Orleans, Louisiana, as De Soto.

In April 1862 De Soto was busy ferrying troops to evacuate the area near Island Number 10 on the Mississippi River and was used, under a flag of truce, to communicate with Union gunboats.

It was at night, and De Soto approached cautiously, giving four blasts of her whistle, repeatedly, until answered, whereupon Federal officers came on board to accept the surrender.

After undergoing extensive repairs at Cairo, Illinois, General Lyon saw duty as ordnance, stores, and dispatch ship for the U.S. Navy's Mississippi Squadron.

She was re-documented for commercial service as Alabama, and was destroyed by fire at Grand View, Louisiana, on 1 April 1867.