Mr. Wharton to Mr. Mizner.

No. 143.]

Sir: I inclose herewith, for your information, copies of communications addressed to this Department, by telegraph and mail, in regard to the detention of the Pacific Mail Steamship Company’s vessel Colima at San José de Guatemala and the seizure by the Guatemalan Government of certain arms on board in transit to a port of Salvador.

I also inclose copy of a telegram* from you to this Department on the subject, which, as has since been learned, was forwarded by the Guatemalan Government to its minister in the city of Mexico, and there delivered to Mr. Ryan to be thence repeated to Washington.

Upon receiving the news of the expected detention of the steamer and the proposed interference of the Guatemalan authorities with a part of her lading as “contraband” in advance of any announced belligerent status of either Guatemala or Salvador, the Department endeavored to instruct you by telegraph, and certain messages were dispatched to you, of which textual copies are appended. Notwithstanding that some of these dispatches went by way of the Mexican lines, it is not known that they or any of them actually reached you; at any rate, no response whatever has been received from you on the subject of the Colima incident.

The letters of Mr. J. B. Houston, president of the Pacific Mail Steamship Company, to this Department indicate that the Government of Guatemala rests its claim to stop the arms upon a clause in its contract with the company by which the latter bound itself not to convey to ports adjacent to Guatemala any munitions which it has reason to believe [Page 55] are intended to be used against Guatemala; and, on the other hand, that the company prefers a direct claim against the Government of Guatemala for breach of an arrangement for the reconveyance of the arms in question to a Mexican port and their deposit there on the company’s storage-hulk, which arrangement is said to have been made by the company’s agent with your knowledge and sanction.

In this connection, I transmit copy of a telegram from Mr. Ryan, dated 29th ultimo, conveying statements in regard to the seizure of the arms in question which had been made to him by the minister of Guatemala in Mexico.

Your full report of the incident is awaited before the Department can instruct you in the premises. If you have not acted upon the telegraphic instructions sent you, you will await further advices before doing so.

I am, etc.,

William F. Wharton,
Acting Secretary.
[Inclosure 1 in No. 143.—Telegram.]

Mr. Houston to Mr. Blaine.

Pacific Mail Steamship Company’s steamer Colima left San Francisco for Panama and intermediate ports on July 3. No war between Guatemala and Salvador had been then declared, nor has any proclamation of war been made since. Colima had on board as freight shipments of arms destined for ports in Salvador such as are usually carried. Steamer is detained by Guatemalan Government at San José de Guatemala and arms seized. We know of no lawful right to detain her. Are informed our minister has telegraphed you. Please intervene immediately to procure her release and surrender to us of the arms taken. Kindly advise us of the course you intend to pursue, so that we may instruct our agent in Guatemala accordingly.

J. B. Houston.
President.
[Inclosure 2 in No. 143.—Telegram.]

Mr. Lauterbach to Mr. Blaine.

We have received advices that arms on Colima have been confiscated by Guatemalan authorities.

Edward Lauterbach.
Vice President Pacific Mail Steamship Company.
[Inclosure 3 in No. 143.—Telegram.]

Mr. Houston to Mr. Blaine.

Have just received telegraphic information that Government of Guatemala has seized steam launch used for carrying passengers from steamer to shore at San José, in addition to confiscation of arms telegraphed yesterday. Please advise us if Department has intervened in our behalf.

J. B. Houston,
President Pacific Mail Steamship Company.
[Page 56]
[Inclosure 4 in No. 143.—Telegram.]

Mr. Houston to Mr. Adee.

Following telegram has just been received from our agent in Guatemala via Acapulco, Mexico:

Colima sailed July 18.”

J. B. Houston,
President.
[Inclosure 5 in No. 143.]

Mr. Houston to Mr. Blaine.

Sir: Confirming the telegrams heretofore sent you by me relative to the seizure at San José de Guatemala of cases of arms on the steamship Colima belonging to this company and the detention of the steamer, we desire to inform you of the particulars of that occurrence.

The Colima is an American built vessel, about 3,000 tons burden, belonging to the Pacific Mail Steamship Company, sailing under the American flag. She left San Francisco, July 3, 1890, on one of her regular trips for Panama and nine way ports of call on the Mexican and Central American coasts. She carried about 150 passengers and 1,700 tons of cargo and the usual amount of mail, which is ordinarily quite heavy. Some of these passengers and a large portion of the cargo were destined for New York, to reach which point they would have to make connection at Panama and Aspinwall with the steamers of the company running on the Atlantic Ocean. Any detention of the Colima would therefore result in a failure to make connection with such steamers, and consequently in a loss of time to such passengers, and of money to the owners of such cargo, claims for which may be pressed against the Pacific Mail Steamship Company as owner of the vessel.

On the 16th of July the Colima arrived at San José de Guatemala; she was there detained by the Government of that country for carrying contraband, namely, arms and ammunition, which had been received on board the steamer at San Francisco as freight in the usual course and as a customary shipment of merchandise for ports in Salvador. It is not an unusual thing for the company to receive on its steamers, both in San Francisco and in New York, arms and ammunition consigned to various parties in the different republics of Central and South America.

Under the contract entered into between the Pacific Mail Steamship Company and the Government of Guatemala for the carrying of mails and the keeping up of the service of the company’s steamer with the ports of said State, the company is prohibited from carrying arms and munitions of war which shall be consigned to any adjoining ports where it (the company) has reason to believe that the same are destined for a nation which is at war with Guatemala, or that the same are intended to be used in the pillage of any portion of the territory of said State. No declaration of war had at the time of the shipment of said arms, or at the time of the arrival of the Colima at Guatemala, been proclaimed between Guatemala and Salvador, and this company had no reason to believe that the arms so shipped were to be used in the pillage of any part of the Guatemalan territory; on the contrary, the Guatemalan Government, on or about the 9th of July, requested the Pacific Mail Steamship. Company to charter to it (Guatemala) one of the company’s steamers for the transportation of 2,000 soldiers from San José de Guatemala to Amapala, in Honduras, stating that no breach of neutrality was intended, and that no war existed or was impending. The shipment of arms, as stated above, was of a like character with shipments which are from time to time received by this company, and there were no reasons why, in this particular instance, such a shipment should not be received without violating any of the terms of the contract between the company and the Government of Guatemala.

Further than this, we have been informed by the agent of the company at Guatemala that, while protesting against the action of the Government in detaining the Colima and threatening to confiscate the arms objected to, he offered to have the arms transported from the Colima to the company’s vessel the City of Sydney, which arrived at the port of San José de Guatemala on the 17th day of July, 1890, and have them carried back up the coast to Acapulco, Mexico, and there store them on the company’s hulk Alaska. This offer was at first accepted by the Government officials, [Page 57] but while the arms were being transported from the Colima to the City of Sydney they and the launch in which they were carried were seized and confiscated by the officers of the Government.

This action on the part of the Government officials was in direct violation not only of the special agreement which they had made with the agent of the company as to the disposition of the arms, but also of the contract between the Government of Guatemala and the Pacific Mail Steamship Company as to the freedom of the vessels of this company from any detention and interference while in the ports of Guatemala.

It will be impossible for business to be carried on between the ports of the United States and the countries of Central America if the Governments of those countries from time to time make unwarrantable and arbitrary seizures of the vessels engaged in such traffic, and this company, while desiring to express its appreciation of the prompt action already taken by your Department in reference to this matter, asks your further assistance in procuring the release of the cargo so seized, besides indemnity for the damage which has been sustained by this company in the seizure of such cargo and the detention of such vessel.

The enforcement of such claims by your Department will doubtless result in the appreciation by the governments of the various Central American states of the fact that the Government of the United States of America is desirous of protecting and guarding the property and rights of its citizens, and that prompt action Will be taken by it in every instance to see that such property is secure from seizure and such rights from violation.

We inclose a copy of a letter forwarded by this mail to the President of the Republic of Guatemala.

Very respectfully, your obedient servant,

J. B. Houston,
President.
[Inclosure.]

Mr. Houston to the President of Guatemala.

To the President of the Republic of Guatemala:

In addition to the protest which has been made to your Government by the Pacific Mail Steamship Company regarding the seizure of the arms and ammunition on board the steamship Colima at San José de Guatemala on the 16th day of July, 1890, and the detention of said vessel by the representatives of your Government, we beg leave herewith to submit to you a statement of the particulars of that occurrence and the claims of the company for the damage which it has sustained thereby.

The steamship Colima, a vessel sailing under the American flag, entered the harbor of San José de Guatemala on the 16th day of July, 1890, upon one of its regular trips from San Francisco to Panama. She carried a large number of passengers and a heavy cargo destined for various ports of Central and South America, and also for New York, to reach which latter place connection has to be made at Panama and Aspinwall with the steamers running on the Atlantic coast, whose time for sailing is definitely fixed; and any detention which may occur to the sailing of the vessel on the Pacific Ocean will result in a failure to connect with the regular steamers at Aspinwall.

The right of the steamer Colima to enter the port of San José de Guatemala rested not only upon the fact that she was sailing under the flag of a nation which was at peace with the Government of Guatemala, but also upon an express contract entered into between the Government of Guatemala and the Pacific Mail Steamship Company, giving to the steamers of said company the privilege of entering the ports of said country without fear of detention or interference by the Government officials at such ports. One of the provisions of this contract which we have referred to expressly gives to the company the right to carry upon its vessels arms and munitions of war, except such as were destined for neighboring ports where the company had good reason to believe that such nation was at war with Guatemala, and that such arms and ammunition were to be used in the pillage of any portion of Guatemala’s territory.

Notwithstanding the rights secured to the vessel of a friendly power by international comity and the special provisions of the contract between the Government of Guatemala and the Pacific Mail Steamship Company, the Colima was subjected to a search at said port, and certain arms and ammunition which had been shipped at San Francisco in the usual course of the business of the company and as a customary shipment of merchandise for the ports of Central America were seized and confiscated by the agents of your Government, and the steamer was detained and prevented [Page 58] from continuing on her voyage, and making the calls at the various ports at which she was scheduled to arrive, and the connection at Panama and Aspinwall with the steamers for New York.

The seizure of these arms and the detention of the vessel were based solely upon a claim, as this company understands it, that they were being carried by this company, with its connivance, to the Government of Salvador, which State your Government at that time appeared to consider a hostile nation.

The Pacific Mail Steamship Company has always claimed the right, and still insists upon its privilege, of duly complying with the demands of the public, as it is in duty bound to do as a common carrier, to receive and transport all merchandise which is offered to it and which it has the carrying capacity to accommodate.

At the time of the shipment of the merchandise in controversy upon the Colima at San Francisco this company had no reason to believe that the consignment so made was in any way in violation of the terms of the contract between your Government and the company, under which it was to have the free access to the ports of your country; and, in addition, no declaration of war had at that time been made against Salvador by your Government, the shipment was made by private parties to private parties in Salvador, and the company had no knowledge of the intended use of such arms or ammunition which would have warranted it in refusing to transport such shipment and thus make itself liable to claims for damage for refusing to transport such goods when it had ship room for them.

We would further state that about the 9th day of July your Government requested this company to charter to it one of the company’s steamers for the transportation of 2,000 soldiers from San José de Guatemala to Amapala, in Honduras, expressly stating at the time that no breach of neutrality was intended, and that no war existed or was impending.

In addition to these circumstances, we desire to call your attention to the fact that when the agents of your Government demanded that such goods should be surrendered to them on the ground that they were contraband of war, the special agent of this company, Mr. Leverich, while protesting against the right of your Government in any way to interfere with the freedom of the vessel or the transportation of such arms and ammunition, in deference to the wishes as expressed by such agents, agreed to have such arms and ammunition transferred from the Colima to the City of Sydney, a steamer of the Pacific Mail Steamship Company which arrived at San José de Guatemala on the 17th instant, in order that they might be conveyed back up the coast to Acapulco, Mexico, and there stored upon the storeship Alaska, belonging to said company, until the determination of the question as to whether or not the company should be allowed to transport them to their points of destination. This proposition was accepted by the representatives of your Government at San José, and the arms were actually in process of transshipment from the steamer Colima to the steamer City of Sydney when they, as well as the launch in which they were so being transferred, were seized and confiscated by the agents of that Government.

The company claims that this confiscation of the arms and ammunition and of the launch, as well as the detention of the steamer Colima, has been an unwarranted interference with the rights of a vessel sailing under the flag of a nation at peace with your Government, and desires to inform you that all the circumstances of this case have been called to the attention of the Department of State of the United States of America, in order that the demands of this company for the surrender of such arms, ammunition, and launch, and the release of said steamer, together with a claim for indemnity, shall be duly urged by the Department of State.

The claim which the company has against your Government arising out of this occurrence amounts to the sum of $500,000, the payment of which is hereby demanded.

Very respectfully, etc.,

J. B. Houston.
[Inclosure 6 in No. 143.]

Mr. Houston to Mr. Blaine.

Dear Sir: Inclosed please find copy of a letter dated 31st ultimo received by this company to-day from the consul-general of Guatemala in New York, Mr. Jacob Baiz.

Also copy of our reply to the same of even date. We forward this correspondence in compliance with the request of the Honorable Mr. Adee, that the Department of State should be furnished with all information bearing on this case.

I am, sir, etc.,

J. B. Houston,
President.
[Page 59]

Mr. Baiz to Mr. Houston.

Letter No. 1.

Dear Sir: I am quite surprised to learn from several reporters of the newspapers that your company has seen fit to make exaggerated expression of claims, etc., which your company intend making against the Government of Guatemala for an alleged overt act against one of your steamers in the taking of some arms, etc., from her while in the port of San José The official information which I have received states that the arms (if any) which were taken from the steamer was only done so by the authority of your agent and with the consent of the American minister at Guatemala, and was in accordance with article 17 of your contract with the Government.

It is to be regretted that in this moment, when the Government of Guatemala is in a state of trouble because of the acts of the Salvador Government, that your company should endeavor to make matters worse, and prejudice public opinion against a country which has always carried out its obligations with your company, whose trade is a source of great revenue to you. I hope I may not seem partial in only asking that justice and moderation may be done to Guatemala, and

Remain, etc.,

Jacob Baiz.

Mr. Houston to Mr. Baiz.

Letter No. 2.

Dear Sir: Your esteemed favor of the 31st ultimo has just been received and contents carefully noted.

You close your letter by expressing the hope that justice and moderation may be done to Guatemala. The state of the case seems to be that the Pacific Mail Steamship Company is the party at this time to invoke “justice and moderation” on the part of the authorities of Guatemala in connection with the affair referred to.

We have forwarded a claim to the President of the Republic of Guatemala based upon our rights as an American corporation, without disregarding our duties to that Republic under our contract for carrying the mails.

We have found no one who is cognizant with the contract referred to who places any construction upon it that would allow the Guatemalan authorities the right to lay violent hands upon our ship or cargo, especially in view of the fact that we received a request from the Government of Guatemala (through our agent, Mr. J. H. Leverich) a few days before the arrival of the Colima at San José de Guatemala, asking us to charter said Government a steamer to transport 2,000 soldiers to Amapala direct, in which they made the statement that no war existed.

It seems to be the generally conceded opinion of our people and press that the channels of information between the authorities of Guatemala and their ministers, consuls, and agents abroad have been uninterrupted, while those between all other parties have been entirely cut off since the 10th of July last.

I notice from your letter that you state that the arms in question were taken from the steamer “by authority of our agent, with the consent of the American minister at Guatemala.” As this statement is entirely at variance with the telegrams which we have received from our agent and other sources, is it possible that the statement referring to your communication with your Government can be correct? If it is so, I will defer to your superior information—otherwise I believe that we have acted properly in accordance with the light which we possessed.

The statement is made to us by our agent that the ship was detained without authority, and that after we bad agreed with the officers of the Guatemalan Government to return the arms to Acapulco, to be stored on our storeship Alaska they were seized while in transitu from the Colima to the City of Sydney and confiscated.

For the detention of the ship and for violence done our property, we have rendered a claim to the President of the Republic of Guatemala, and have invoked the assistance of the Government of the United States in its prosecution.

In regard to your statement that this company has in any way aggravated the condition of affairs prejudicial to your Government, you are entirely mistaken. We have simply attempted to defend our rights, and I say this without comment in reference [Page 60] to your statement that Guatemala has always carried out its obligations to the Pacific Mail Steamship Company.

This latter subject may be referred to later.

Believe me, etc.,

J. B. Houston,
President.
[Inclosure 7 in No. 143.]

Mr. Houston to Mr. Blaine.

Dear Sir: Referring to my letter of the 1st instant, I now beg to inclose herewith copy of a letter from our special agent in Guatemala (Mr. J. H. Leverich), dated 17th ultimo, relating to the arms and ammunition on board the steamship, Colima, which explains itself. You will notice that this letter must have been sent before the arms had been seized and after being placed in the launch to be transferred from the Colima to the City of Sydney.

We would state, for the information of the Department, that Captain Long is the commander of the Colima, and that Mr. Sarg, the gentleman mentioned in the last paragraph of Mr. Leverich’s letter, is our agent at San José.

These letters are sent in compliance with the expressed wish of the Department to be furnished with whatever information we receive on this subject.

I am, etc.,

J. B. Houston,
President.

Mr. Leverich to Pacific Mail Steamship Company.

Dear Sirs: I received the following message from Capt. J. S. Long this morning from San José, viz: “Shipments of arms for Salvador seized by commandant of port. Ship detained until arms given up. Wire instructions or come yourself.” I at once consulted Minister Mizner, who informed me that the Government had appealed to him yesterday not to allow the arms on board Colima destined for Salvador to be delivered at Salvador port, and that he had referred the question to Washington, and, in view of above telegram from Captain Long, that he would supplement his dispatch of yesterday, advising the arms had been seized as contraband of war by this Government, although no declaration of war had been made. I then sent you my message No. 1, as per inclosed copy. Later in the day the minister of foreign affairs sent for me and stated that article 17 of the company’s contract prohibited the landing of the arms on board Colima at destination, and requested that they be landed and deposited at San José with the United States consular agent, and that the Government would guaranty their safe keeping. It was also suggested they should be transshipped to City of Sydney to be returned to San Francisco, and I sent an order to the port to hold the Sydney until further orders. The answer given me by the superintendent of the telegraph office was that my order was too late, as steamer was just sailing. I thereupon dispatched you my message No. 2 (copy herewith). At 4 p.m. I was advised from San José agency that Sydney was detained awaiting my orders.

After consulting with Mr. Sarg and Minister Mizner, we deemed it best to transfer the arms to the City of Sydney for storage on hulk Alaska, at Acapulco, and I sent you message No. 3 to that effect.

Respectfully yours,

J. H. Leverich,
Special Agent.

Mr. Leverich to Pacific Mail Steamship Company.

[Telegram.—Translation.]
No. 1.]

Guatemala Government has seized as contraband of war arms for Salvador on board steamship Colima. Steamer detained until arms given up. United States minister has telegraphed Washington, D. C., for instructions. Wire instructions.

J. H. Leverich,
Special Agent.
[Page 61]

Mr. Leverich to Pacific Mail Steamship Company.

[Telegram.—Translation.]
No. 2.]

Referring to Guatemala mail contract, Guatemala Government requests deposit arms on board steamship Colima with United States consul at San José de Guatemala.

J. H. Leverich,
Special Agent.

Mr. Leverich to Pacific Mail Steamship Company.

[Telegram.—Translation.]
No. 3.]

I have ordered arms to be transferred to steamship City of Sydney for storage on hulk Alaska.

J. H. Leverich,
Special Agent.
  1. See telegram from Mr. Mizner of July 16, 1890.