The same day a notice was served on the merchants requiring them to present themselves at the office of the collector at 3 p. m. on the 20th, for the purpose of liquidating their duties, and imposing a fine of $25 a day for every day's delay in presenting their paid invoices.

This embraces the most important orders issued since the occupation of the town and since the promulgation of martial law.

I believe the orders have been complied with generally up to the present time.

This morning there are reports on the streets of a housebreaking and several persons abused by the Nicaraguan soldiers, and there is also reported to have been a considerable exodus of the negro population. Yours, etc., B. B. SEAT,

United States Consular Agent.

[Inclosure 5.]

Saml. Weil & Co., and others, to Mr. Seat.

DEAR SIR: Inasmuch as the commissioner of the Republic of Nicaragua to the Mosquito Reservation has deposed the local governinent and declared martial law, we, the citizens of the United States of America, merchants of Bluefields and vicinity, feel that our interests, which amount to at least one and one-half million dollars, are not protected, and rights, privileges, and vested rights obtained and enjoyed are in danger of being taken away from us.

By the action of declaring martial law a serious fault is committed against our interests, for it makes all insurance policies null and void and places all our properties in jeopardy, and in case of fire our losses and hardships would be severe, and in many instances the possessions of citizens of the United States would thus be swept away and leave them in poverty.

Many of us have leases, contracts, grants, and concessions obtained honorably from the deposed Mosquito Government, and for valuable considerations; and from expressions uttered by Sr. Carlos A. Lacayo, commissioner, these are in danger of not being recognized by the Nicaraguan Government, to our injury.

We have made our investments in this reservation, knowing there existed a guaranty in the shape of treaty, which treaty has been observed and been in effect for over thirty years, and our capital, labor, and fortunes within this reservation have been placed here by us with the feeling that we were living in a free zone, with perfect security, and not to be affected by the well-known caprices of a LatinAmerican government.

Now, by the action of the said commissioner, the fruits of our labor, the commerce of the reservation, which has been developed and is upheld almost solely by the citizens of the United States, will be hampered and eventually ruined; for the duties existing here prior to the deposing of the local authorities were lenient and moderate, and it is now proposed by the Nicaraguan authorities now in charge of the Mosquito Reservation to increase said duties and collect them, and there is no telling where or when the further increase of duties will end. The Spanish language to be introduced here, within a territory that has been an English speaking one for years, and all records kept in

that language, will work hardships upon us, and can be used to entrap us to commit ourselves.

The new authorities will require consular invoices from the United States, entailing extra expense upon the merchants and more labor. This was not required by the previous Government; and as our impor tations come mainly from New Orleans, La., U. S. A., and steamers remain in that port frequently only long enough to discharge and load, the time entailed to make these invoices in Spanish will work to our injury.

The officers appointed thus far by the said commissioner are collector of customs, treasurer, port surgeons, and some minor officers. The collector of customs has issued the inclosed circular requesting them to pay duties to him.

We recognize the supreme authorities of Nicaragua, and are not protesting against their placing troops here; for we acknowledge same to be their rights, simply protesting against Nicaragua interfering with any of the local laws of the reservation affecting our previous rights and privileges.

American shipping has been hampered by being required to obtain certain manifests, permits, and same serve to detain said vessels unnecessarily, and were not required heretofore by the local authorities. Therefore, as our representative, we respectfully ask that you address a note to the acting authorities requesting that they give pledges and guaranties that the interests, vested rights, rights and privileges enjoyed by citizens of the United States shall remain intact and shall not be interfered with, and would also respectfully ask that you will inform our Government of the situation, the jeopardy our properties are placed in, and that we ask the good offices of the United States to secure for us the protection of our rights that we are entitled to.

Sam'l Weil & Co.; Sam. D. Spellman, agent for Geo. D. Emery; The New Orleans and Central American Trading Co., Julius Fueolander, managing; Jno. Wilson; Wilson & Ingram; Brown, Harris & Allen; H. Ebenpaeger & Co.; J. A. Peterson; Bluefields Banana Co., per Tho. W. Waters; Paul Osterbout; G. C. Haigmt; Sam'l Serf; J. S. Lampton; Henry F. Jepinger; G. B. Ehlen; Adolph Pomaroutz; S. Nathen; B. Frank; C. P. Jessup; H. G. Tom.

[Inclosure 6.]

Mr. Lacayo to Mr. Seat.

[Translation.]

American Vice-Consul, present:

BLUEFIELDS, February 17, 1894.

I have the pleasure of referring to your communication of the 16th, in which you acknowledge the receipt of a communication signed by the American citizens, resident of the city, in which they joined for the purpose of representing that they possess acquired interests within the reserved territory; that they expect guaranties for those interests; that they recognize the right of the foreign authority of Nicaragua to occupy the territory, and hope that the cordial relations existing between the Government of Nicaragua and the United States will be cemented now

with the respect which the interests of the Americans merit; and lastly, you ask to obtain through my official authority an immediate recognition of those interests, and that as the insurance policies on their said property are suspended during the existence of martial law, who is to reimburse them for their losses in case of accident by fire, and at the same time you inquire concerning the language to be adopted in this country.

Your very important communication will be forwarded to the supreme Government to be considered, and I have no doubt that not only will the rights of Americans but those of all other persons who possess such right will be protected.

In regard to the situation of affairs, and the consequences, they are clearly determined by the law of nations.

Nicaragua is not responsible for any private transactions.
With all consideration, I am, etc.,

CARLOS A. LACAYO.

[Inclosure 7.]

Proclamation of Commissioner Lacayo.

To the Citizens of Bluefields, greeting:

You know that, challenged by the tyrant who reigns in Honduras, we accepted as a duty to our national honor the glove that was thrown down.

The war has been occasioned by an ambitious and criminal man whose barbarous actions are known to you.

It was he who bombarded an American vessel which had on board the minister of the United States.

He is the same cruel tyrant who failed to respect anything in his own country, even to women and children, and the same who, naming himself chief of the Mosquito Reservation, proceeded to throw his wild hordes on these unprotected, cities which would have happened, if in the battle of Ilaya our soldiers had not routed them.

Notwithstanding that we have fortified Cape Gracias a Dios, the marauders from Vasquez could invade this port, if Nicaragua were to leave it without defense.

Our forces have arrived and you have with you the vanguard of the soldiers of Nicaragua.

They come to defend your homes and your interests, and they come also to save the lives and interests of the strangers, for which Nicaragua is responsible by international law, and would be criminally negligent if she did not do all that is in her power to give them the protection of her flag and soldiers.

General Cabezas is the honorable chief of our military forces, who promises to have the laws of the Republic respected, which are the rights and guarantees of each person.

Have faith in our army, whose heroism and bravery have planted our glorious and victorious banner in the last bulwark of Vasquez. The people of Bluefields have nothing to fear. Our sovereignty is their safeguard.

CARLOS A. LACAYO, Comisario de la Reserva Mosquitia.

BLUEFIELDS, NICARAGUA, February 10, 1894.

[Inclosure 8.]

Proclamation of Intendente General Cabezas.

PROCLAMATION.

Considering that having been refused the rights of Nicaragua of putting forces in its territory by the chief of the Mosquito Reservation;

That the same chief, in a letter addressed to the commissioners of the Republic, the contents of which letter were communicated to me, opposed openly the mobilization of Nicaraguan forces, menacing to capture and chastise the soldiers who carry arms;

That the referred note signified a categorical denial of the sovereignty of Nicaraugua and the disavowal to the legitimate authorities; That in the war in which she is involved all acts which favor an enemy are crimes of high treason;

Therefore, by the powers and faculties invested in me, I decree: ART. 1. Military occupation of the city of Bluefields and declare it in a state of seige.

ART. 2. To ignore the authorities in office appointed by the Mosquito Government. The commissioner of the Republic will organize, according to necessity, the régime of administration and police.

ART. 3. No crafts can leave the city or port without a pass from my office.

ART. 4. It is prohibited to form groups or public meetings, or to carry arms.

ART. 5. The transgressions which are committed against the order and security of the State will be punished by martial law. Given in Bluefields, Monday, 12th February, 1894.

RIGOBERTO CABEZAS,

Intendente General of the Atlantic Coast.

[Inclosure 9.]

From Jose Vita to President Zelaya.

[Telegram-Translation.]

SAN JUAN DEL NORTE, March 6, 1894.

MR. PRESIDENT: I have the honor of communicating to Your Excellency the following:

BLUEFIELDS, March 4, 1894.

In the house of the governor of Nicaragua, in the city of Bluefields, there assembled the captain of the English man-of-war Cleopatra, the English consul, and the commissioner of the Republic to the reservation, to confer for the purpose of adjusting the present difficulties arising for the military occupation of the reservation. While the several governments are debating the question, a modus vivendi, conforming to the following articles, 18 established:

First. The commissioner will organize a police for the protection and safety of Bluefields.

Second. The commissioner will also organize a municipal council, composed of five persons, two to be named by the consul (British), and three by the commissioner.

Third. The military forces will be withdrawn from the city of Bluefields and from the reservation.

'So in the translation of Senor Vita's telegram. In the rest of the correspondence it is stated that two municipal councilors are to be named by the American consul.

Fourth. The commissioner acknowledges the validity of all international treaties existing between the Republic and Great Britain.

CARLOS A. LACAYO.

A. PENGONTIONAS.
H. F. BINGHAM.
(Sic H. HOWE, Capt.)

I have the honor to be Your Excellency's obedient servant,

JOSE VITA.

NOTE.-The above was kindly furnished me by President Zelaya.

L. B.

Mr. Gresham to Mr. Bayard.

[Telegram.]

DEPARTMENT OF STATE,
Washington, March 9, 1894.

We have trustworthy information that a few days since a British military force landed at Bluefields in the Mosquito territory. You are instructed to ascertain and report fully by cable the occasion for this action.

Mr. Gresham to Mr. Baker.

[Telegram.]

DEPARTMENT OF STATE,
Washington, March 14, 1894.

Did Great Britain land troops under asserted right of sovereignty or only for protection? Prompt answer desired.

Mr. Bayard to Mr. Gresham.

[Telegram.]

LONDON, March 15, 1894.

Just had an audience with Lord Kimberly, who is without precise knowledge or reliable information of occurrences at Bluefields. British Government have given no instructions and are awaiting information which, when received, will be promptly and fully communicated to the United States. British consul at Greytown telegraphed, 4th of March, British minister at Guatemala, that Nicaraguans suddenly seized Bluefields and displaced Mosquito flag, behaving violently and cruelly. Because of disorders and dangers to residents, British war vessels visited Bluefields. Mosquito flag rehoisted, quiet restored, pending settlement. Extract from Lord Salisbury note of March, 1889, in Foreign Relations for that year, page 469, has full concurrence of Lord Kimberly, "No protectorate in substance or form, nor anything in