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I give you a translation of the repy to this, as follows:

"In this department the government has not the power to protect the interests of the Panama Railroad Company, having only a few policemen to attend to the town duties. This I shall communicate to the government of the state, that it will, no doubt, take it in consideration.

"IGNACIO PEREZ."

This admission obtained, (an important one,) I at first thought of sending a force from the Wyoming, which Commander Cushing was ready to furnish; but, as this end of the road was still quiet, concluded to let the detachment from Panama come as far as Mamei and then return. Before having the United States troops sent, however, I took the precaution to telegraph to the station-superintendent at Panama as follows: "DIAZ: Are there any national troops at the station? If so, ask for a detachment of them to come to Mamei. If they refuse, send the United States troops."

His reply reads: "No national troops at this station." I then said: "Then send United States troops; start train."

You will see from this that I was careful to ask the needed protection before accepting it from the United States forces. All this was done between 12 and 1 o'clock of the 24th.

The officer in charge of the United States forces in Panama promptly sent a detachment of ten men, and also sent a similar guard with the train, leaving Panama at 7 a. m. on the 25th, but as there appeared no sign of further interruption, I then had the guard discontinued, except when passenger trains from connecting steamers have been sent, when it has been sent out as far as Mamei and returned from there to Panama. Toward night on the 24th I received a telegram from Captain Dow, as follows: "I have seen President Neira, who regrets the circumstances related by Mr. Fry." To which I replied, "I think that the President's' regrets' hardly atone for the interference of this morning with Mr. Fry and the train."

Soon after the commencement of hostilities, the force of Colombian national troops, called the battalion "Sapaderes," sent to and maintained on the Isthmus for the protection of the transit, joined the state forces, and are still in the ranks opposed to the rebels or outsiders. Had it not been for the presence and prompt action of the United States naval forces, under the command of Admiral Almy, the interests of this company and of the transit generally would have been at the mercy of an armed mob of semi-savages, and it is not difficult to predict the result. As it is, our thanks are due to the United States forces.

Since the first day, September 24, we have been able to keep up a show of work at Panama, although under many difficulties and drawbacks.

Refugees from the city and suburbs have crowded into the station for shelter and protection to the number of several hundred, mostly women aud children.

The United States military force has contributed to make the station a scene of constant bustle, excitement, and confusion, so far as work has been concerned, and the only wonder is how Mr. Hunt has managed to do so well as he has. It must be remembered that all of this time, since the night of September 23, eleven days to-day, communication with the city by land has been entirely cut off, rendering it necessary for all our officers and clerks to go backward and forward between their homes and the station by water, which could only be done at high tide.

I am, your obedient servant,

[Inclosure 2 in inclosure in No. 15.]

Mr. Robinson to Mr. Keeler.

TRACY ROBINSON,
Acting Superintendent.

RISING STAR, Aspinwall, October 6, 1873.

DEAR SIR: At 11.20 a. m. of this date I received telegram from Captain Dow, of which the following is copy:

"During last night the entire rebel force evacuated its position in suburbs, literally stole away and is now said to be at its old quarters beyond the Rio Grande. I walked this morning from the city to the depot for the first time in twelve days. I think there is no doubt but that the rebels are out of ammunition and have retired until such time as they can renew the fight with fresh supplies. In the mean time peace may be negotiated. Communication with the city by land is now open."

From this you will gain an idea of the present situation. The strife may be at an end and may not. Meanwhile we can only hope for the best. Commander Brown, commanding the United States forces on shore at Panama, telegraphed me at the same

time that it was thought by himself and Captain Dow unnecessary to keep a larger force than fifty men on shore to protect the company's property, in which I acquiesced, and at 4 this p. m. the balance were sent back on board.

I have written a letter to Admiral Almy, copy of which you will find among my inclosures. It seems but proper that I should convey the sense of obligation the company is under.

The various questions which have arisen affecting the company in its relations to the state and national governments have been all referred to Admiral Almy for solution, inasmuch as he had assumed military control of the transit and must therefore be held responsible for its safety. This we have been all the more willing to concede, as it has relieved us of an important share of the very pressing and grave responsibilities inseparable from the situation; and I am happy to say that, so far as I am at present informed, no just cause of complaint has been given these people by any act of commission or omission on our part. Day and night we have been vigilant to guard the interests of the company and at the same time to preserve the strictest neutrality.

It seems more than probable to me that the present cessation of hostilities is owing to the strict watch we have kept in the matter of smuggling ammunition to the rebels. On the 30th September, it occurred to me that it would be well to keep a sharp lookout, and I requested Mr. Wise to examine carefully every package of local cargo which might contain contraband. As a result, he came back to me the same day and reported having discovered something wrong in a shipment of 10 barrels flour, made by Mr. J. F. Cespedes of this place, examination showing that something besides flour was in the barrels. They were allowed to go forward, however, with instructons to Mr. Hunt to examine, who found each barrel to contain 2,000 cartridges, more or less, all destined for the outside party. This fact having come to the knowledge of General Neira's government, there was an awakening on their part to an extra vigilance, going so far as to even request me not to receive or allow to be transported to Panama, from Aspinwall or the line, any cargo whatever, of a local character; a request, by the way, I could not comply with, but so far as anything suspicious has been concerned, I have taken good care not to allow it to be received.

Of course, this long interruption has caused an accumulation of Panama cargo, which now amounts to well-nigh 1,000 tons, and which up to the present remains on our hands.

Mr. Hunt reports freight-house full and 36 loaded cars on station, while we have the cargoes of two sailing-vessels, the Osprey and a French bark, a large part of which is for Panama, besides constant arrivals.

This stoppage has also interfered seriously in the matter of funds with which to meet our payments. Mr. Hunt's collections have almost entirely ceased for the past two weeks, and it is uncertain how soon he may be able to collect September bills. It has, therefore, been necessary for us to draw for money rather than defer our payments, which I trust will be approved.

I am your obedient servant,

[Inclosure 3, in inclosure in No. 15.]

Mr. Robinson to Admiral Almy.

TRACY ROBINSON,
Acting Superintendent.

ASPINWALL, October 6, 1873.

SIR: I beg you will pardon my delay in making this formal acknowledgment of the very great debt of obligation under which you have placed the Panama Railroad Company, of which I have the honor to be the temporary representative on the Isthmus. Verbally on the 27th ultimo I requested Commander Brown to transmit so much in substance to you, and nothing but an unremitting pressure of care, coupled with illness, has prevented my earlier acknowledgment, in this form, of what I may be permitted to call the invaluable services rendered by yourself and the officers and men of the United States Navy under your command in the protection of the transit during these troubled times. With the hope of having the privilege of thanking you in person,

I am, sir, with great respect, your obedient servant,

TRACY ROBINSON,

Acting Superintendent Panama Railroad Company.

[Inclosure 4 in inclosure in No 15.]

Mr. Dow to Mr. Keeler.

PANAMA, October 7, 1873. DEAR SIR: In continuation of my respects, No. 74, by previous steamer, on the political condition of affairs here, I now beg to report the following events, as having transpired since that time.

At the time of closing the letter referred to, rumors were rife that the rebel party intended attacking the city the same night, (22d,) and so convinced of this was the inside party, that the president of the state sent to the United States consul a verbal request to ask the admiral, commanding United States force in these waters, to land a force from the United States steamer Pensacola and the Benicia for the protection of foreign interests in this city, and the property of the railroad at the station.

The night of the 22d passed without any offensive movement on the part of the rebels.

Late in the afternoon of the following day, (23d,) the admiral sent on shore to this depot an effective force of one hundred and twenty men, and two howitzer guns, upon the arrival of which the Federal squad of fifteen men, mentioned in my last, were withdrawn to the city.

About 1 a. m. on the 24th, the rebel forces secretly left their camp, and approaching the city under cover of the darkness, opened fire on it from the windows, and from loopholes made in the stone walls of the houses which they had taken possession of in the

suburbs.

The government, expecting an attack, had already for some days had its force disposed in houses along the line of the city walls, and from these sheltered positions the fire of the rebels was returned. All through the following day, and through all the succeeding nights and days, the fire was kept up, with occasional intermissions on both sides until last night, when the rebels vacated their positions and retired in good order to their camp at Faufau, beyond the Rio Grande, where it is said they will remain until peace is made by negotiation, or until with re-enforcements of men and materials they can renew the fight with better chances of success. Fighting as they have been on both sides from behind stone walls, the list of killed and wounded is small. For these particulars I must refer you to the newspapers which go forward by this mail.

Referring to the United States naval force on shore, I may remark that on the 23d, as already stated, there were landed one hundred and twenty officers and men and two howitzers from the flag-ship Pensacola. On the 25th this force was increased to one hundred and sixty-six officers and men and three howitzers, and on the 26th to two hundred and fifteen officers and men, this last being the maximum number at this depot at any one time.

On the 27th an additional force of twenty-five officers and men with a howitzer were disembarked from the Benicia and sent to the cabildo, or city hall, accompanied by seventy-two officers and men with one howitzer from the depot, making the total force on shore two hundred and forty men and four guns, one hundred and forty-three of which from the Pensacola were continued at the depot.

On the 4th all the Benicia's men returned to their ship, and on the 6th instant (yesterday) the force at the dept was reduced to seventy-nine officers and men with two howitzers, which is the only force now remaining on shore.

The commanding officer on shore has suggested to the admiral, now that the rebel force has retired and communication with the city by land is again open and unrestricted, and the fighting between the belligerents is virtually over, for the present at least, that this last-named force be still further reduced to twenty-five officers and men with one howitzer, which is quite sufficient and may be necessary for moral effect, in which I agree with him. The officers and men from the Pensacola, those now here, have been on shore two weeks to-day, and, as a matter of course, they are anxious to

return.

Before closing this part of my letter, referring to the political and military condition of affairs here, I may be permitted to say of our naval officers and men, who have been the guardians of the company's valuable and exposed property, that they came promptly and cheerfully to its protection. Exposed as they have been to 1ain and sun, and insufficient accommodation, I have yet to hear the first murmur of dissatisfaction or discontent from either officer or man. I consider them well entitled to the special thanks of the company.

One more allusion and I am done, and that is to the serious interruption during the continuance of hostilities to the work of embarking and disembarking passengers and freight from our depot-wharf. For the first two or three days after hostilities broke out interruption was almost complete, as it was difficult to find men to do the work. Subsequently the work was carried on with some degree of regularity, but still under great disadvantages, by reason of the presence of many women and children who had

abandoned their homes for the security afforded by the wharf and the buildings at the depot.

Another and greater inconvenience than all, and which was constantly attended with danger to the lives of all the officers and clerks of the company, was the cutting off of communication by land with the city, where they all of necessity reside, and which forced them from the morning of the 24th ultimo until yesterday morning, a period of thirteen days, to go backward and forward between the city and the depot-wharf in small boats, and literally under fire of the rebel guns, and hardly a day passed that there were not some to tell their experience of a hair-breadth escape from passing shots while making the passage. Another great inconvenience of this means and course of travel was the tides, which for three hours every day entirely interrupted communication. But, notwithstanding the danger from passing bullets and the many inconveniences to which they were subject, the duties of the different departments at the depot were carried on with as much care and attention as in ordinary times, aud the company's interests were not permitted to suffer by neglect.

Yours, &c.,

JOHN M. DOW,

Acting Agent.

No. 228.]

DENMARK.

No. 188.

Mr. Cramer to Mr. Fish.

LEGATION OF THE UNITED STATES,

Copenhagen, January 14, 1874. (Received January 30.) SIR: In addition to what I have already communicated to you in my No. 226, of the 9th instant, concerning the absence of any foundation for the truth of the report that Germany is in treaty with Denmark for the acquisition of the Danish West India Islands, I have now the honor to inform you that yesterday I took a walk with the chargé d'affaires of the German Empire, (the minister is absent on a cougé,) and in the course of our conversation I asked him about the truth of the report in question. He stated to me that there is positively no truth in it. Before leaving Berlin for this city, about two months ago, he said he was specially charged to give a positive denial of the truth of the said report. I have, &c.,

No. 189.

Mr. Fish to Mr. Cramer.

M. J. CRAMER.

No. 146.]

DEPARTMENT OF STATE,
Washington, May 5, 1874.

SIR: The steamship Washington, which arrived at New York on the 29th ultimo, brought as steerage-passengers six convicts, who had been discharged from prison in Denmark. It is alleged by the commissioner of emigration that they were sent hither by the Danish government, their fares having been paid by the police authorities of Copenhagen. The names of these persons are Frederick Oskar Hiclen, Christian Johan, Edward Möller, Niels Steffenson, Ola Leonhard Bachmann, Peter

Petersen, and Frederick Wilhelm Schulian. Each of these convicts had in his possession a draft for $7.60, drawn by N. P. Fredericksen on the American Emigrant Company.

All but Schulian have been prevented from landing, and will be returned to Copenhagen by the Washington, sailing on Saturday next.

You are instructed to bring these facts before the Danish government, and also to have a rigid inquiry made into this case. This Government cannot but suppose that the commissioners of emigration are in error in supposing that His Majesty's government has participated in this unusual and unfriendly act.

I am, &c.,

No. 190.

HAMILTON FISH.

No. 148.]

Mr. Fish to Mr. Cramer.

DEPARTMENT OF STATE,
Washington, May 8, 1874.

SIR: Referring to my No. 146, respecting the Danish convicts sent to New York from Copenhagen by the Washington, I have now to inform you that Mr. Hegermann Lindencrone had an interview with Mr. Davis on the subject at the Department to-day.

Mr. Hegermann Lindencrone said that he understood that this Government was going to send back to Copenhagen some Danish emigrants.

Mr. Davis replied that it was true that this Government had refused permission to land some Danish convicts who had been sent out here. Mr. Hegermann Lindencrone said that the persons referred to had served out their terms as convicts, and had come like other emigrants.. Mr. Davis answered that the information received by this Government was not exactly to that effect, and he asked Mr. Hegermann Lindencrone whether he had any personal knowledge on the subject.

Mr. Hegermann Lindencrone replied that he had not, except that he was informed that the persons had served out their terms as convicts. If they had been sent here, it was doubtless by some persons who desired to reform them, or possibly by the police, certainly not by the government; and he suggested that, if we would consent to defer sending the convicts away, it would give an opportunity for inquiry.

Mr. Davis replied that it was not for a moment to be supposed that the Danish government had sent these persons here; we felt sure that it could not have been a party to so unfriendly an act. But we were convinced that the persons were convicts, although they might have served out their terms; and we felt equally sure that they were not voluntary emigrants, but had been sent here. If, therefore, Mr. Hegermann Lindencrone could give no assurances to the contrary, we thought it due to his government to send the persons back, in order that it might have the means of investigating the subject, and an opportunity to punish those who had sent them here. He added that you would receive full instructions on the subject, and that this Government would not consent to make this country a refuge for either paupers or convicts. These persons, therefore, would go back to-morrow, unless Mr. Hegermann Lindencrone could give an assurance that we were mistaken in their character.

I am, &c.,

HAMILTON FISH.

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