Potter was promoted to ensign on July 12, 1870, and transferred to the frigate USS Franklin, the Flagship of Rear Admiral Charles S. Boggs, commander of the European Squadron.

After four years at Annapolis, Potter was ordered to the steam frigate USS Powhatan in January 1879, which served as the flagship of Rear Admiral Robert H. Wyman, commander of North Atlantic Station.

Admiral Wyman later switched his flag to USS Tennessee and Potter served aboard her until September 1881, when he returned to the United States Naval Academy.

Potter was subsequently appointed flag lieutenant to Rear Admiral Bancroft Gherardi, commander of North Atlantic Station, and served aboard his flagship USS Philadelphia until January 1895, when he began his fourth tour of duty at the Naval Academy as assistant to the superintendent and secretary of the academic board at the Naval Academy under Captain Philip H. Cooper.

In September 1897, Potter was appointed an executive officer to Captain French Chadwick aboard armored cruiser USS New York, the flagship of Rear Admiral Montgomery Sicard, commander North Atlantic Station.

Following the sinking of battleship USS Maine in Havana Harbor in February 1898, he was assigned to the Sampson Board's Court of Inquiry, investigating the incident under then-Captain William T.

[1] The events in the Caribbean led to the outbreak of the Spanish–American War in April that year and Potter served with the armored cruiser USS New York during that conflict and took part in the final phase of the Battle of Santiago de Cuba in July 1898.

[1] Potter was promoted to commander on September 9, 1899, and ordered to Philadelphia Navy Yard, where he assumed duty as ordnance officer under Captain Charles E. Clark.