MF-

 

MME$ G. BLAINE AND UNITED STATES
MEDIAN-ON EN THE WAR OF THE PACIFIC

mu ree- m Dog-u at M. A.
MCMGAN STATE €023.56!
80th! Wifiéu Sméfis
1955

H-{Ff‘il'fi

This is to certify that the

thesis entitled

James G. Blaine and United States

mediation in the war of the facific

presented by

Betty L-Jilder Smith

has been accepted towards fulfillment
of the requirements for

M . A . degree in ___I‘JLH5-St0

 

WafiZga/

Major professor

Date ;-’1arch 15A 1955

 

0-169

 

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€iSOQTCC”CIt" resultinf i; “r"r' co3fllcts “eve rten lrccuo“t,
00th or civil "hrs vitiin 3': ietlcr c3n3tries, rLfi as were
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boundrries, res the wa~ f the Pee fie betveen Ceile, Peru

e3pL3 rer tly, was the inordinate greed of Cnile for the nitrate
fields of Peru and Welivia, and the gueno beds of Peru. The
country vhich won the var would eceuire a source of revenue

that would assure it a sterCy ince e and nernit a snostentiel
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.0

.s is usually true in a case oi this kinc. The nterest demon-

H-

 

 

The rti 33ssi’etis o: 1810 nrovi6ed that the bean? ries
of the LC” notions shoulfl be thos_ in effect in 1310 in the
major administrative units. This is the last ycer in which
S3ai - ised full and undisnuted evthority in S3enish

7°

2
strated by citizens of various European countries and the
United States was acute, because of investments made in the
countries directly concerned, as well as a general desire for
peace in the area.

In the United States, the Department of State, under
Secretaries William Evarts and James G. Blaine, took an active
interest in the War of the Pacific. Both Evarts and Blaine
were convinced that every practicable means should be exhausted
in an effort to secure or maintain peace for the nations of
the Western Hemisphere. Blaine continued the Latin American
policies of Evarts, enlarging and strengthening them. His
interest was more active and more pronounced than that of his
predecessor, but he remained in general agreement. Both men
were seriously handicapped by the low caliber, at least as
diplomats, of the United States representatives in Chile and
Peru. Blaine finally removed the ministers bequeathed by
Evarts, but he replaced them by men even more incompetent.

Toward the end of Elaine's first tenure of the State
Department, the Secretary sent William H. Trescot as special
envoy of the United States to the war area, instructing him
to try to bring about a just and honorable peace, which would
become effective as soon as possible. .Trescot was beginning
to feel confident of at least partial success, even after
Blaine had been replaced by Frederick T. Frelinghuysen, when

suddenly he was ordered by the new head of the State Depart-

3

ment to moderate his efforts in attempting to find a satis-
factory end to the war.

As a result of the death of President Garfield on
September 19, 1881 and the succession of Chester A. Arthur to
the presidency, the failure of Elaine's policies was inevitable.
Within the Republican Party there were factions motivated by
great bitterness toward each other. Blaine was a member of
one of them, Arthur's supporters of another. Those politicians
to whom Arthur looked for direction were determined to oust
Blaine from office and to wreck anything constructive which
he might have planned. They were anxious to prove him a
complete failure, even to the extent of making him appear
dishonest, in order to ruin any chance he might have for the
presidency in future elections. This, they seemed to feel,
was more important than the preservation of the influence and
respect of the United States in Latin America.

As a preliminary to our treatment of United States
involvement in the'War of the Pacific we will discuss Elaine's
characterand personality, as well as his governmental and .
business attitudes within the United States and overseas.

we hope to paint a clear, unbiased picture of United
States intervention or mediation in the War of the Pacific.

The period in which Blaine was Secretary of State in 1881 will
be considered primarily, though a summary account will be given

of United States intercession before Blaine took office and

1,

after he resigned. We will be concerned not only with proving
or disproving Elaine's good intentions but with showing to

what extent he was responsible for the final failure of United

States mediation.

Chapter II

)

.“"T'-“C‘ “‘TTW'”) "7 7,“ 7'7”"?
JL.-._AJ GILLLJQ -I; 4-. I-.i..'.LJ

.1.
‘AL

froiers 91 figures
in United States history. Hailed as "the Flufied Ilnig1t"2 by
.wers, but
'ossible to determine with
onplete surety, Lis true merits.

He was porn in West Erewnsv'lle, Pennsylvania on Jan-
uary 11 18.0 of Scotch—Irish ancestry. His immediate nicestors

seem to have and the czaracteristies commonly referrec to as

Ct
55;
i3.

respectable, hard-working fty and substrntial, yet thev

were courageous people who li:el to try their fortune in a
new environment. ares, too, had an adventurous spirit. Po

ent- red entcusirs ically into iron and oal nine deals and

O

o J. o 1- o 1 4‘ v‘. ‘ o 1 - ‘ {yo 1‘

leO risuy railroad constsnc*ion nrogects, re.ing iroiite we
' V 0 1 ‘ _ D‘. n o J- n 1 c Q‘.‘ 0

iriendsnins 11th imiortent linenCial nasiotes Cr his theiness

- U. . N: . .
roi college in loh7 Blaine taught

Jo ’ . -n ‘ . q -. .1 a g. c J-
or several years. At the end O; .313 period to 13VG€ Ll th

his wife, :erriet Stanwooo E”aine, to nor n'tive city, Auguste:
Heine, where he be came e<litor-in- chief ancl part owner of The

 

L
i Po Fl “rotary, ed. Thones P. Hee6 (P -ilerelphi 1a,
c18037, ufi- ”Fl-125

Ebert G. Infers fill, "Blaine - The P3U“ed Krirht,"

(30“,

6
Kennebec Journal. It was not long before Blaine began to
take an active part in politics. In 1858 he was elected to
the Maine legislature and in 1862 to the United States House
of Representatives where he remained for thirteen years. He
then served in the Senate until his appointment to the office
of Secretary of State by President Garfield in 1881.

Both Mr. Blaine and his wife were exceptionally hos-
pitable. Their home was a center for intelligent, sparkling
conversation and was much frequented by important statesmen
and business executives. Possessing a vibrant, persuasive
personality, he was accepted with deep affection by a large
number of Americans.

It was Elaine's misfortune that he lived at a time
when the acquisition of wealth and power by almost any means
was thought to be of paramount importance. Laws controlling
business and financial interests were lax and little observed.
Vast sums of money were invested in questionable schemes for
railroad development and in speculative ventures in the fields
of banking and industry. many people found themselves swept
along in the frantic rush for financial power and government
grants.

Blaine was a close friend of many who were so impelled,
consequently he, too, was among the accused. It seems unlikely,
however, that Mr. Blaine intentionally engaged in dishonest

practices, dishonest, that is, when compared with the general

7

business morality of the period. It is unfortunate, never-
theless, that he could not see clearly through the financial
and industrial morass of the period, achieving the moral
judgment so evident in such men as Carl Schurz, George w.
Curtis, Charles Francis Adams, Josiah Quincy and Morefield
Storey. His political honesty and integrity might have needed
less constant championing if he could have allied himself
with these reform leaders. It is_regrettable that Blaine was
a "party man." In his political life, party devotion was
paramount, defection in the interest of reform unpardonable.

In 1875, when Blaine stepped down from his position
as Speaker of the House, after serving in that capacity for
about six years, there was a genuine outburst of admiration
for him from both Democrats and Republicans:

In the House there was a most gratifying

demonstration in favor of Speaker Blaine. As

he spoke the last words of his valedictory and

stepped down from the desk the House rose in

unison and every man joined with equal hearti-

ness in a round of applause such as never was

heard before in the Capitol. It had hardly

died away when it swelled again into a perfect

storm, accompanied by cheers and soon for a

third time the applause swept through the hall

as the Speaker stood at the clerk‘s desk, bow-

ing his thanks and shaking the hands of members

who thronged about him.3

On the other hand, only nine years later this state-

ment was printed in ghe Spectator of London:

3 Edward Stanwood, James Gillespie Blaine (Boston,

The Republican party in the United States
has for twenty-four years enjoyed the strong
sympathy of English liberals. ... But it is impos-
sible that this should last, in the face of a
programme like that adopted by the Republican
Convention of Chicago, followed by a nomination
like that of Mr. Blaine. ... That gentleman,
a man of a certain superficial brilliancy and
eloquence, is believed throughout the Union to be
the favourite candidate of the wire-pullers, the
soul and brain of the 'machine', the politician who,
of all others, holds that corruption is unavoid-
able in democratic politics. ... the friends of
Reform have already revolted; and every newspaper
in the Union which has hitherto defended purity
in politics (er cept the New York Tribune) ifi
declaring that the nomination cannot stand.

DeSpite the strong charges which have been made against
him, to Elaine's admirers, and they are many, his virtues
far outweigh any faults he might have had. He was a generous
man, tolerant and sincere, beloved by his family and the

wide circle of friends who adored him.

_—

# "The Nomination of Mr. Blaine" (editorial), The
Spectator, LVII (June 1%,1884), 779.

Chapter III
THE WAR OF THE PACIFIC - A SYNOPSIS

Until l8hl, the exact location of their common bound-
aries made little difference to Peru, Bolivia, and Chile;
but in that year, guano was discovered along the shore line
of the Atacama desert and on the nearby islands. In 1866,
nitrates were found in the border area, by a Chilean. And
by 1871 silver mines had been opened. ‘With each discovery
the necessity for fixing the exact boundary lines increased
tremendously.

On July 31, 1842 President Montt of Chile, in a message
to the Chilean Congress, averred:

Inasmuch as the usefulness of the substance

known as "guano" has been recognized in Europe, ...

I deemed it advisable to send a commission to

explore and examine the seaboard from Port of

Coquiumbo to the head of Mejillones, for the pur-

pose of discovering if any guano deposits existed

in the territory of the republic, which, properly

worked, might furnish a new source of revenue to

the Treasury; and ... guano has been digcovered

from 29035' to 2306' of south latitude.

The Chilean Congress accordingly passed a law on October
31, 1842 providing that "all the guano deposits which existed
in the province of Coquiumbo in the littoral of Atacama and in

the adjacent islands are hereby declared national property."6

-‘

5 Arbitration between Pepu and Chile. The Case of Peru
(washington, 1923), p. 28.

6 Ibid., p. 29.

10

Since the territory now claimed by Chile was in the
area claimed by Bolivia, that country protested immediately.
Chile took the protests lightly, and continued to exploit the
guano. About 1843 the Chilean Minister to Bolivia is said
to have remarked that a desert between two countries was like
a river between those countries, half of it belonging to the
one country, and half of it belonging to the other.7 He did
not hesitate in applying this extraordinary theory to the
Desert of Atacama. Is it any wonder that trouble developed
between Bolivia and Chile? 'When, in 1857, some Chilean laborers,
digging guano in territory claimed by Bolivia, were imprisoned
by Bolivian authorities of Cobija, Chile sent a warship to
Mejillones, soon driving out the Bolivians and claiming the
territory. Bolivia's next step was to send a memorandum to
Chile asserting her claim to the 25th parallel on the basis
of the uti possedetis of 1810. This demand Chile refused to
consider seriously. In 1861 negotiations between the two
countries were discontinued and in 186% war appeared probable.
Spain, however, by seizing the Chincha Islands off the coast
in that year, united the three Andean nations against her as
a common enemy, and because of the renewed amity, Chile and
Bolivia were able to reach an agreement over the disputed

boundary.

 

7 William Jefferson Dennis, Tgpna and Arica (New Haven,
1931), p. 32.

11
In lees Chile and Bolivia Jesotieted a treaty concerned

‘tacena, clarifying the C es ti on of

The line of deuarcatien of the limits
between Chile and Bolivia, 1; the lesert of
Atacama, shall henceforth be the parallel of
2&0 south-latitude, ... can that, the
Republic of Chile and the Republic of 7olivia
saall divide ecutlly the produce of the gueno
(O‘OS‘+S di cove°cd in Lejillones, 536 any
other ceios ts the scne kind wnich "ry be

1
C“PCCV€:c€ c territory CO‘n“e‘cher
1711317530.“; the c.3761 and grail (1.3.» :iTCGS Of 30731717.
"atit U1 e, as a1 0 I‘.e export duties upon
ninera s expor ” ron the space 0: territorv
now (7. si f’l’lzi'tCC..U

C)

3 Ho. ‘ - m
{.3

_J
[)th

f

M? ‘ ' 4 - n H
lac C“cocaine" opera tie n of such a prov1slon .3 this

ould have reouired n'Jch more friendliness, natience an

1*- 4- f N- r\ w . ‘ "- .“‘ h I) . .L " ‘0
tolerance baa; was ,oss101e on the part Ol either 01 t

J.- .1. 4-1, J- -- . / ., .: . ,.. . n 1
Bar 108 to the tree y of 18o6. A primary cease of lurtner

difficulty was the uncertainty, as to the exact location of the
parallels. In 1872 Chile sent a special mission to Bolivia
to consifler their common problem and a new pact was concluded

in Decenber, 1872, known as he Li ndsay-Corre 1 Agreement in
which the joint—bxnefit arrangement was retained, minerals
were defined customs inspection was limited to a speciiic
zone for each country and the export

be changed "ithout he consent of both nations.9 This con-

 

 

Great Britain. Foreign O"fice British inc sortisn
State avers (Lor cm on, 1866), LVI, 713.

 

12
vention was agreed to by Chile, but not by Bolivia, for her
statesmen were still hoping for better terms.

In 1873 the Chilean foreign minister asked Mr. Logan,
the American minister at Santiago, to act as arbitrator in the
dispute; but this attempt to settle the controversy met with
failure, too.

In the discussion preliminary to the signing of the
Treaty of 1866, Chile, by a series of sly maneuvers, attempted
to drive a wedge between Peru and Bolivia. It was preposed to
President Daza of Bolivia on the eve of the war, that Bolivia
receive Arica, in return for aiding Chile. Soon afterward,
two young Chileans approached two former Bolivian officials
with a proposal to overthrow President Daza and prevent Bolivia
from engaging in a war against Chile over Antofagasta. From
the war Bolivia was to receive Tacna-Arica as a prize settle-
ment. A bit later, Colonel Canseco, a prisoner of the Chileans,
was set free with the condition that he carry similar proposals
to the enemies of Daza in the Bolivian capital. An attempt
was even made to persuade Daza himself to break the alliance
made with Peru. Justiano Sotomayor, a Chilean, in a letter to

Daza on April 8, 1879, said:

... Peru, ... is the worse enemy of Bolivia,
she is the one that holds her under the weight
of her customs regulations, the master of the
commercial, industrial and to a certain point
political liberty of Bolivia.

Chile has taken to Bolivia industry and
capital. With that impulse mining has taken on
considerable growth, that activity has had to
affect the agriculture and wealth of the country.

13

Chile is the only country that can free
Bolivia from the yoke which Peru imposes on her.

Chile is also the only nation which allied
with Bolivia can give her what she lacks to be a
great nation, namely her own ports and free
communication.

Can Bolivia hope to find in Cobija and the
other ports of her littoral an outlet for her
commerce? Profound error.

The only natural ports for Bolivia are
Arica, 110, and Mollendo or Islay.

Allied with Peru and making war on Chile,
what will happen to Bolivia if Chile is conquered?
She will fall into the hands of Peru and suffer
as before under the weight of her duties. And
if Chile should triumph, what would the allies
gain? Bolivia, conquered or conqueror, will
remain without ports and handicapped as a nation.

On the other hand, with Bolivia united to
Chile, wouldn't she be sure of conquering Peru?
Wouldn't she have it in her power to possess a
door to the street which she lacks? ... Against
Peru we will fight to the death; Bolivia, we
cannot hate her.

Why are we going so out of the way making
wars that we do not like and alliances even that
we do not want?

Would there still not be time to put things
in order? 'Why not?

Now or never Bolivia ought to think about
gaining her place as a nation, her real independence,
which certainly is not in Antofagasta but rather
in Arica.

After this war it will be too late, Chile as
conqueror would not consent to it, at least
unless Bolivia does her part. Peru as a conqueror
will impose the law on Bolivia her ally and on Chile
her enemy and Chile weakened would not be able
to aid Bolivia if she should ask it.

The man who should give to Bolivia her indepen-
dence from Peru, would be greater than Bolivar
and Sucre, because they only gave her an imitation
of liberty and he would be giving her real and
true independence.

Was SOt such a colossal enterprise reserved
for you?1

 

10 Dennis, gacna and Arica, pp. 87-89, citing Prescott,
E1 problema continental, pp. 287-290.

1%
More official sources, too, entered into the conspiracy.
Three days later, President Pinto of Chile, in a letter to
Rafael Sotomayor, a brother of Justiano, recommended a plan
which he thought would solve the problem.
The most satisfactory solution of the question
in which we find ourselves compromised ... would
be an alliance with Bolivia, with her taking the
southern departments of Peru and leaving us the
area up to the Lee. Bolivia separated from Peru,
the war would not last long. This opportunity will
not come twice and Bolivia ought to seize it. If
you are able to do something about this, don't lose
the Opportunity.11 ,
President Daza stalled for time, in the negotiations,
but it was not long before he made evident his friendliness
toward Peru. When the Chilean cabinet officially tendered
him proposals similar to those given above, Daza made them
public and pledged his loyalty to Peru.
On August 6, 1874 a new treaty between Bolivia and
Chile was negotiated at Sucre. Adolfo Ballivian was president
of Bolivia at the time. This treaty once more stipulated
that the boundary line should be the aath degree of latitude
from the sea to the mountain range of the Andes and it con-
tinued the division of guano between the 23rd and zhth paral-

lels. Furthermore, it stated that the export duty rate on

all minerals produced within the disputed area should not be

 

llDaniel Sanchez Bustamante, Bolivia, su estructura y
sus derechos_en e1 Pacifico (La Paz, 1919), p. 158.

15

"8188C, nor should Chileans, their iccuCtry, capi“al or persons

a 3

~,. fi 4- ‘ . r. J. M q q 4— -~ -‘
be talee a a higher rate lor two“: y- live veers.

fiJ‘. ' . '\ r-l '. ‘ V‘A \. ‘- v ‘- r‘ C. n .
operating-under v rious titles, 3 ong NLlCJ rere, the Compafiia
Explote c7ora del Salitre, the Compafiia de Salitres y Ferrocarril

fl

1 . . J... . n t”: '.-. 3 c' ' fl - :
ee Antof agasea, ear the COHQCHAQ Anonima he J litres y rerroca-ril

w 7 '

A ~ . .-- u- vnz- -2 . 1 - ~ .-. 1:";
de Antoiafacea. Chile 3.lnte.neu tact 318 can any was Call an
I. :1 1 4— 4- 3 ‘ -° -c‘-' M °
should no treatee as such, speCIiically that l

O

t
be tamed by Bolivia in violation of the Treaty of 187%.13

o - o - . - o () ..., ”7' _3 - .0: ~ A
given this coneary a concess;o n in leCo to e p7Clt thu n-1cr 7s

: 1‘ ‘1 _o _ '. .L a T? ’4- 'n f ' ’.fl ‘2 q : ‘
in the eisfiutee area. due on Lay lo, 1873 'olgerego een-cd
the exclusivenrss of the CCncession. Th- situCtion becaie CVCC

grvup of Bolivian citi en convene'7 for the prrvose of orgCu-
izing Cs stable a gov rn”cnt as possible. one of their acts

:as the ianlicetCO of many agreements entered into ty KolCCrcjo,
especially those whici and t (o *ith the alienation of property

. . - '1 v , 1 , , 1
unless the persons concerned provee the they nel ooe'ed the

law. r7he forereptloper corieny failed to comply with this new

 

’5 . .
a A '— J- fl is J- . O T‘ - . 1" -6 - .8 '4' —2 J. . g " ‘fi 4-" _ O:
4 Cr: C nrleain. rereiCn 0 rice, w:itisa F;L ZorCiCn

 

1
State Powers (London 1881), LIZI, 897.

 

 

 

 

 

 

A
1* — - 1 a m ”I ,4 . ~° a , -

a AccOCr7ing to Do- lonas C:ivanC, ”15.3Tlf re la
r‘ 14”" r ' ‘r‘ mm C: _ n'CJ‘CC (771-5 "I Inw" v T757 41-»? q ‘ “7. m ---. '1 QC”)
410-10; 9 ii’. (7‘ - 1,10 pl... --3 .- L.. -9. 4; _,).,',-.L .‘.;.g... ..‘..O-C11CC, ,Li 7L“, ,

T ‘. -..-‘--*- -' ~ ---—*' q . ‘ ‘ . . '.
‘N f'_ J.‘ .,, . ... p. “1,, 41-! ,T‘ _.3 .7. ‘ .1“, ,_ . . -.._ .... ..., 1" A .l-

p o ‘3 ,7 , CLLC‘ COX} 3‘ 71‘“ 7.‘.'E‘.S J. - La.».".\..CL- 7.».3. e.!. 1.1, r _-L 39.1 «7.7 --.'C- A. 7011(31711 C .‘7 -9. up]. 0

16
requirement, consequently its title to the concession was
annulled in January 1872.

In 1873, the company was granted a new contract, which
was approved by the Bolivian Congress in 1878 on condition
that there be a minimum tax of ten centavos on each quintal of
nitrate which was exported. The Chilean government at once
complained that the new ruling violated the treaty of 187%.
The Bolivian government answered that the new requirement did
not come under the treaty, since the Bolivian Congress had
reserved for itself the privilege of approving or disapproving
the contract made before the treaty was signed. In addition,
the treaty of 187% had reference only to Chileans, their
companies and capital, and it was believed by Bolivia that the
Compafiia Anonima de Salitres y Ferrocarril de Antofagasta was
Bolivian since it had been incorporated in Bolivia under
Bolivian laws.

The Chilean government would not debate the question
of ownership of the company, simply stating that unless the
government of Bolivia suspended any tax authorized after the
ratification of the treaty, Chile would declare the treaty
invalidated.

As a result, Bolivia ordered the Prefect of Cobija to
institute action against the company, with the purpose of
collecting the tax. Furthermore it informed the Chilean agent

in La Paz of the measures it was taking.

17

The Treaty of 187% having provided for arbitration,
the Chilean government on January 20, 1879, suggested arbitra-
tion of the disagreement provided that the collection of the
tax be suspended until the dispute was settled. But since
the Bolivian government had already begun action against the
company, and since the company still refused to comply with
the Bolivian law in the payment of the tax demanded by the
Bolivian government, Bolivia invalidated the contract and
instituted proceedings to recover the nitrate deposits.

On February 8, 1879, the Chilean agent commanded the
Bolivian government to arbitrate the dispute or face the con-
sequences. Since Bolivia had not answered within forty-eight
hours the agent asserted that the Treaty of 187% had been
abrogated and requested his passport. On February 1%, Chilean
troops landed at Antofagasta and took over the company property.

It is difficult to understand how Chile could have had
any legal or moral justification for this action, nevertheless,
Bolivia, being the weaker power, would have been wise to take
any possible measures which might have prevented war. Arbitra-
tion would probably have been prudent but, unfortunately, she
felt a false security because of her treaty of alliance with
Peru and because of the conflict between Argentina and Chile
over Patagonia. Furthermore, the Bolivian government may
have felt that in the long run Chile would gain everything she

wanted, or at least would attempt to do so.

Bolivia CCVirC Ccoue very worried about bCr rcletion—
snip with Chile, Cad CerCdv.:egotiCted wit? Perv : defiarive
alliance wiicL the two nrtion: siCned on F truery 6, 1873. It
is Cvident, 8T3" €59 V935738 of the treat", that mutual Cre-
tection wrs tle “T1207“71 ”CCCCC fCr the CCreerent. Article
VIII reads in Cert° "Tfie bigl CC”tCCctirC parti-s lihewise
agree to the following: Fir st. Preferential?" to 0 Clay,
al"CyC provided it be possible to do so, every possible concil-

. J'- q ‘1’\ ‘ a D O -- W ‘ ‘na
iC.OCv pcrsni'e to avo'u a ruot re,
.n.1_ °.n.:v3 '1--,." v.1-
to .lie tInC, 11 .ut gartziixerrgrzxren
q“ o ‘ J... . p _!_'! _ _' - ‘
arbitircion ol a ai‘C sewer small
it "
r0 J—J—c — Q J—‘Al>: 1 -_8..
oi attain fig this one

or such as mav out an enl
. ,
.4. “ 1.,"-. 9 ‘ 1" J. J_"
C}... OLLJ, (ISMEIL LTLHC Delphi V -C

Rive ACve°o, cr“'s 7ereigu mmater, writinr to flannel
Garcia IrigO"en, one Peruvian ninCscer in inches hires, on
August 2%, lc73, Ktressed his views. "The CoverC”Cit has not
new nor has it cvrr Ltd the intenticn of entering into an oflen-
sive alliance; we do not wish nor is it to our ”nte10373 DO
attec any nation; on the contrCry, it is to the interests of

 

 

 

 

 

 

 

 

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19

Further evidence of the good intentions of Peru and
Bolivia can be seen in Article X of the treaty: "The high
contracting parties, either separately or collectively, may
invite the adhesion of one of several other American States to
the present defensive treaty of alliance, when by a later
agreement they may consider it to be convenient to do so."16

On learning that diplomatic relations between Bolivia
and Chile had been severed, Peru told Bolivia that she had
expected her to suspend the tax on nitrates. Since matters
had gone so far, however, Peru recommended to her ally that
she do everything possible to reestablish friendship with Chile.

As a more active move, Peru sent a peace mission to
Chile, headed by Jose Antonio de Lavalle, an able Peruvian
diplomat. He was instructed to convince Chile of the unfor-
tunate results which war would bring and was to urge arbitra-
tion.17

By this time, public opinion in both Chile and Peru had
become so agitated that it is possible that war could not have
been avoided. It may be that the Chilean officials could not
have retained their positions if they had agreed to the pro-
posals of Peru. Meanwhile, in Peru, the press was demanding

that the government aid Bolivia or resign.

 

l6 Millington, American Diplomacy'and the War of the
Pacific, p. 152.

17 arbitration between Peru anQ_Chile, Appendix to the
Case of Peru_ZWashington, 19237, pp. 72-75.

20

Joaquin Godoy, Chilean minister to Lima, was, at the
same time, doing everything in his power to encourage the war
by prejudicing his government against Peru.

Chile refuse to continue negotiations with Peru unless
that country would reject the Treaty of 1873 with Bolivia, end
all military preparations, and promise neutrality. Peru was
not able to follow such a dishonorable course; consequently,
Chile declared war on Peru and Bolivia, April 5, 1879.'

The contrast between the three participants in the War
of the Pacific was noteworthy, economically, socially and
politically. Bolivia, the most miserable, economically and
socially, was almost continuously engaged in political turmoil.
Peru was practically bankrupt because of loans made to her by
foreign interests which she was not able to repay, and by the
issuance of large amounts of paper money not properly guarantied.
Large loans had been made, based on guano receipts which were
diminishing. Expenses of frequent revolutions, too, added to
Peru's financial plight. The payment of interest on the foreign
debt was halted in 1876.

During the presidency of Colonel Balta, (1868-1872), a
great deal of money, borrowed from abroad, was spent on public
works so that Peru seemed to be very prosperous. President
Balta, a man of energy, resource and imagination was aware of
the need for railroads which would provide transportation to

the coast for Peruvian products, therefore, he had construction

21
started. He was instrumental in improving the harbor at Callao
and continued the project of providing access to the vast forests
east of the Andes by widening and deepening the rivers. All of
these plans were admirable but Peru did not have the money
available to finance them.

‘When Don.Kanuel Pardo was inaugurated as president on
August 2, 1872 he was faced with a desperate financial crisis
which he was unable to resolve. One project which Pardo insti-

gated as a possible solution was the setting up of a nitrate

1C3

monopoly by Peru in arapaca in 1873. This was one of the
primary causes of the war. A little later all mineral deposits
in the region were mortgaged to European purchasmngof Peruvian
government bonds, Chileans being given little consideration.

The Chilean historian, Vicufia Mackenna, clearly reveals
Peru's justification when he says: "It is necessary to con-
fessthat in adopting any course relating to a Peruvian product
the Peruvian president was within his right according to the
law of nations, because he was free to legislate on domestic
affairs as seemed best for the interests of his country."18

One pretext, given by Chile, for the war, was alleged
ignorance of the defensive alliance of 1873 between Peru and

Bolivia. The provisions, however, had been known publicly

for sometime. The possible participation of Argentina in the

 

8 Clements R. Markham, A Histopy of Peru (Chicago, 1892),
p.35.

22

treaty was discussed in the Argentine legislature in 1877.
The Chilean minister later confessed that "the nitrate terri-
tory of Tarapaca was the real and direct cause of the war."19

Vienna Mackenna admitted the primary causes of the
war: "The war with Bolivia was consequently s mply a question
of time, from the moment when the prospector Cangalla found
the first pieces of silver ore on the sides of Caracoles: a
war with Peru was bound to be equally inevitable and for the
same reasons."20

Chile's economic situation was quite different from
that of Peru and Bolivia. In 1851 The North American Review
had forecast its fu are in glowing terms:

In conclusion, we will say that Chile seems
destined, at no distant day, to become "the model
republic" of the south, and to exert the influence
of arts, if not of arms, over the whole southern

‘continent. She will be the first to follow in our
steps, for the character of her people, more closely
than that of any other of the Spanish races, re-
sembles our own. Her geographical position is the
most commanding one south of the equator, and,
united with her energy and enterprise, will give
her the control of that portion of the Pacific.

It becomes "The Great Republic of the North" to
cultivate the most intimate relationship with this,
her most promising disciple. .The friendship will

be a mutual good, and a blessing to those vast
regions which lie between them, whose destinies

must be moulded in a greater or less degree by those
of Chile and the United States.2 .

 

19 Ibid., p. 386.

20 Benjamin Vienna Mackenna, Hi 0
I o 1 .
Tarapaca (Santiago de Chile, 1880), ,p. 33-3H.

21 Samuel G. Arnold, "The Republic of Chile," The North
American Review, LXKIII (October 1851), 277-310.

23
Thirty years later another periodical included this
description of Chile:

Its population has increased to over two
millions. Its capital, Santiago, is a fine city
of more than one hundred and sixty thousand peeple.
Its port, Valparaiso, is a centre of trade. Chili
has excellent schools, a liberal government, a
reactionary or clerical party that has no love for
schools or colleges, a progressive party that has
made the country what it is. The rich soil invites
immigration, and some of the fairest wheat lands
of the world are to be found on the southern slopes
of the Chilian Andes.

The desert of Atacama bounds Chili on the
north. It is treeless, rainless. The water used
is distilled in large tanks. Its climate is hot
and suffocating. But the desert and the interior
mountains abound in deposits of nitrates and silver;
the industrious Chilians worked the mines. An
unhappy dispute has ripened into war, and once
more, as in 1839, the fierce people of Chili have
invaded the feeble North, captured Lima, and hold
in their hands the fate of Bolivia and Peru. It
would have been happy for the cause of freedom
had the angry nations settled their dispute by
arbitration. But the fratricidal war broke out in
1879, the Chilian squadron captured the famous
Peruvian ram Huascar, after a long contest between
two iron-clads - the first encounter of these
fearful offSpring of the Monitor and the Merrimac.
The Chilian iron-clad, the Cochrane, received Iittle
damage. The Huascar was torn to pieces by her
shot. Her turret and her brave commander, Graw [sic.]
were blown into the air together. The horrible
victory gave Chili the command of the seas. Her
fleets and army moved up the shore. They seized
the disputed desert; they defeated the superior
forces of Bolivia and Peru; they have reduced the
rival republics to a condition of degradation and
distress, from which they should labor to raise
them with the magnanimity of freemen.d

22 Eugene Lawrence, "Chili," Harper's'Weekly, XXVI
(July 22, 1882), #59.

2%

Chile was victorious, almost continuously, from the
beginning to the end of the war. Bolivia, being very weak,
was soon eliminated. Peru was not strong enough to fight
Chile alone; so, within two months of the start of the war,
Chile was at the Peruvian frontier. By August, 1880 all Anto-
fagasta, which had been claimed by both Bolivia and Chile,
had been cleared of Bolivians and Peru had been driven from
Tarapaca which she formerly owned entirely. Chile could see
victory ahead. Her people were jubilant and demanded that the
acquired territory be kept, but Peru and Bolivia still had
hopes of regrining the lost provinces with the aid of foreign
nations and so the war continued.

The Edinburgh Review characterized the naval conflict

 

in these words: "The brilliant actions of which the South
Pacific has lately been the scene have reminded us that both
Chili and Peru are naval Powers. Indeed, the navy of Chile
has a history of respectable length and some distinction. ...
The Peruvian fleet now hardly exists. The Chilians have two
handy and powerful armour-clads, built in this country, as
well as the turret ship 'Huascar', which they captured from

their enemy."23

 

23 The Edinburgh Review, American edition, CLIII (January,

1881), 2%423, review of J. w. King, The'War-ships and Navies of
the world (Best. and Lond., 1880).

 

25

Because of the naval victories, Chile had control of
the seas, which meant that Peru, unable to receive any supplies
from Europe by ship, ordered war materials from the United
States and smuggled them across Panama.

By the end of the war Chile had won far more than she
ever dreamed of winning. She had possession of all the ter-
ritory she desired, her foreign trade was doubled, the govern-
ment revenue had tripled and the Chilean public debt had been
greatly reduced.

In a later section we will discuss more fully the
political aspects of the war and the results of the interest

of foreign nations in the conflict.

Chapter IV
UNITED STATES MEDIATIOH DURING THE HAYES ADMINISTRATION
Throughout the war there was much discussion of the
possibility of mediation or intervention by either the United
States or one of the European nations most concerned. The
entire west Coast trade of South America had been seriously
disrupted, especially in the mining areas. Since Europe's
economy had suffered more than that of the United States, it
was logical for one or more of the European countries to offer
help, particularly since South America had always been more
closely linked commercially and culturally with Europe than
with the United States. As a matter of fact, England, France
and Germany almost immediately offered assistance an
to the United States that she join them. But the Hayes adminis-
tration, rejecting all invitations of this kind, clearly
indicated its displeasure at the thought of European inter-
vention in South American matters.
In a letter to Mr. White, the United States Minister
to Germany, Mr. Evarts explained:
While as keenly alive as the governments of
Germany or Great Britain can be to the dangers
arising to commerce from the existence of so de-
plorable a war between kindred peoples, as well
as to the greater prospective danger that the
Argentine Republic and other South American States
may yet be involved in the quarrel, and while it
has been from the commencement of the struggle

and is now ready to assist in the restoration of
peace between the belligerents, whenever its good

27

offices may be usefully proffered, yet this govern-
ment does not look with favor upon any premature
effort, nor any effort in combination with other
neutral powers, which would carry the impression

of dictation or coercion in disparagement of bel-
ligerent rights. Inquiry having been made of this
government, through Her Britannic Majesty's minister
at this capital, in the same sense as that addressed
to you through Mr. Bucher, an identical answer was
returned to Sir Edward Thornton. You will, of course,
carefully note and report any tendencies you may
observe toward further action by Germany in the
direction of South American intervention, either
with or without the cooperation of other powers. ”

As a result of this policy, the responsibility for
mediation must lie at the door of the United States State
Department. Our diplomatic ministers therefore, should have
been men of ability and intelligence, thoroughly trained in
international law, but this was not the case, for the United
States ministers to the Latin American nations were frequently
incompetent. It was generally felt that the republics to the
south were suitable places for sending small-time politicians
deserving of party favors. Then, once settled there, these
men, anxious to hold on to their honored positions, were jealous
of any favorable notice our other representatives in Latin
America might receive. Instead of cooperating with one another
they often had outrageous quarrels. It is evident that 'n this

perilous situation, though her prestige was at stake, American

mediation had dubious chances of success.

 

2% John Bassett Moore, A Digest of International Law
(New York, 1906), VI, 3%, citing MS. Inst. Germany, XVI, 486,

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29

was the victor and that continuing the war longer would be
useless for the other belligerents. Mr. Evarts, accordingly,
on the 29th of the month, in his instructions to the United
States ministers in Peru and Bolivia, directed them to urge
the governments of those two countries to make peace if it
could be negotiated on honorable terms.26

In the course of the same summer Italy, England and
France offered to mediate. Chile accepted with the condition
that Tarapaca be ceded to her. But the other belligerents
indicated their preference for mediation by the United States.
Osborn, our minister to Chile, in a report to Secretary Evarts,
stated that Chile, confident of complete victory, did not wish
mediation by the United States. Finally, however, Chile, too,
accepted her North American neighbor as mediator. Accordingly,
representatives were sent by the three countries to Arica to
meet with the United States representatives to those nations,
Osborn in Chile, Christiancy in Peru, and Adams in Bolivia.
The conference was held on the U. S. C. Lackawanna in October,
1880, to discuss mediation.

Judge Isaac Christiancy was the principal instigator of
this conference. He claimed that he had read an official
despatch from Chile that had been intercepted by Peruvians

which intimated that Chile desired peace. Hoping to forestall

 

J.

26 Ibid., n. 116.

30
European intervention he visited Santiago in August, 1880.
There, Thomas Osborn, according to State Department instructions,
had been carefully maneuvering Chile toward an end to the war.
Now he was reluctantly forced to include Christiancy in his
negotiations with the Chilean foreign office, even though he
knew that the time was not propitious. On September 2, Osborn
complained to Secretary Evarts: ”Mr. Christiancy has come and
gone. ... What he could have expected to accomplish in coming
here passes my comprehension."27

Christiancy was duly informed by the Chileans that

cession of the coveted territory would have to be made the
basis for peace yet he did not seem to comprehend that Chile
would insist upon this, consequently, he failed to relay to
Peru, Chile's demands, and Peru, though reluctant to do so,
accepted the United States offer to discuss peace terms.
Christiancy caused bitter feelings between various factions in
Chile. The war party shouted that the government was too
ready to make peace. Thereupon the Chilean Foreign Minister
Hunnéus felt compelled to announce publicly that mediation had
not been accepted. Christiancy further interfered by writing
the Commander of the Chilean Army proceeding toward Lima asking
him to delay his march, since the Chilean government had con-
sented to discuss peace terms. When this letter was printed

in the Chilean press a cabinet crisis developed.

 

27 Ibid., pp. 124-125.

31

In Bolivia, too, the Chilean position was not understood.
Charles Adams, our new representative there, was questioned by
the Bolivians in regard to what would happen if the Arica
Conference failed. Promising that the United States would
urge arbitration if the conference failed he informed Osborn of
the promise he had made. Receiving no response from Osborn
he concluded that his promise was approved and Bolivia was per-
mitted to enter into the negotiations believing that Chile
would be persuaded to accept arbitration.

The conference opened in a dense atmosphere of distrust
and misunderstanding. Osborn, as chairman, deeply disa‘pointed
the other United States representatives by assuming that their
country was merely the presiding agent and would take no part
in the deliberations, not consenting to arbitrate even if
invited to do so.

Chile stated positively that she would refuse to consider
peace unless she received a money indemnity of twenty million
dollars and the absolute cession of the Bolivian littoral and
the Peruvian province of Tarapaca. Peru and Bolivia refused
to consider the loss of such valuable land and offered a money

indemnity instead, which Chile refused.28

28 Albert G. Browne, Jr., "The Growing Power of the
Republic of Chile," Atlantic Monthly, LIV (July 1884), 115.

32

Peru and Bolivia then suggested arbitration but Chile

1

turned down this preposnl, too, ant the conference ended in

failure.29

President Hayes in his annual message to Congress of
December 6, 1880, expressed his regrets in these words:

The war between the Republic of Chile on
the one hand and the allied Republics of Peru
and Bolivia on the other still continues. This
Government has not felt called upon to interfere
in a contest that is within the belligerent rights
of the parties as independent states. 'We have,
however, always held ourselves in readiness to
aid in accomodating their difference, and have
at different times reminded both belligerents of
our willingness to render such service.

Our good offices in this direction were re-
cently accepted by all the belligerents, and it
was hoped they would prove efficacious; but I
regret to announce that the measures which the
ministers of the United States at Santiago and
Lima were authorized to take with the viev to
bring about a peace, were not successful.J

 

29 The report and protocols are found in U. S. H7th
Congress, lst Session, Senate Executive Documents, No. 79,
pp. %5-+18.

30 James Daniel Richardson, A Compilation of thegies sages
and Papers of the Presidents, 1789-1892.(Was hington , ,19 MT,
VII, p. Ell.

Chapter V

UEITED STATES MEDIATIOH IE THE WAR 0? THE PACIFIC
DURIKG THE GARFIELD ADMINISTRATIOH

On March H, 1881 James A. Garfield, a Republican, became
the President of the United States. For the office of Secre—
tary of State he selected his good friend, James G. Blaine,
to succeed William Bvarts, a selection which had been antici-
pated for sometime, since Blaine was the leading Republican 1
and the person to them.Mr. Garfield looked most often for
advice.

Secretary Blaine had a great interest in Latin America
and a definitely preconceived conception of what the role of
the United States should be toward that area. It was his wish
that this country exercise a benevolent protectership over the
Latin American nations. One might describe Blaine as an early
advocate of "dollar diplomacy" in Latin America. A vigorous
promoter of the commercial and financial prestige of the
United States, he was accused of being a "jingoist"; but it
was of vital interest to this policy tlat the Latin American
nations avoid armed disputes wi h their enormous waste of men
and property.

At the time Blaine became Secretary of State, war seemed
imminent in several places in South and Central America with
boundary disputes causing trouble between Argentina and Chile,

Costa Rica and Colombia, Mexico and Guatemala. President

3h
Barrios of Guatemala was attempting to bring about a new
federation of the Central American countries under his domina-
tion. European creditors were trying to force Venezuela to
repay loans which they had been making to her during many
decades and most serious of all was the War of the Pacific
which had begun in 1879. Chile, confident of winning, was in
no mood for concessions, believing that time would obtain for
her all the advantages for which she was fighting.

In Peru an internal revolution further aggravated the
national danger. On December 18, 1879 the Peruvian President,
Mariano I. Prado fled the country and, four days later, a
former revolutionary leader, Nicolas de Piérola, made himself
the "Supreme Chief." The United States believed it necessary
to recognize Piérola, since he had effective control of the
government.31

In January 1881 Chilean troops marched into Lima, and
Piérola escaped to the mountains, where, refusing to resign,
he set up a very unstable government. Soon afterward, Francisco
Garcia alderdn, a noted lawyer of Lima, organized a provisional
government, with the consent of Chile. There is some question
as to how much approval it had from Peruvians, however.

Sometime later Blaine received from our minister at

Lima, Isaac P. Christiancy, the following message dated April 13,

 

31 U. S. h7th Congress, lst Session, Senate Executive
Documents, No. 79, p. 326. Evarts to Tracy, Jan. 31, 1880.

35

1881 (No. 325): "Upon the whole the evidence, as yet, is
oui 0 clear that the overwhelming majority of the peeple of
Peru are opposed to the orovisional government and still adhere
to Piérola, and at present, if the Chilian army should leave
to-morrow, the only safety of the members of the provisional
government would be to leave with them."32

On May 9, 881 Mr. Blaine replied: "If the Calderon
government is supported by the character and intelligence of
Peru, and is really endeavoring to restore constitutional
government with a view both to order within and negotiation

10/

with Chili ior peace, you may recognize it as the existing
provisional government, and render what aid you can by advice
and good offices to that end."33

On June 16 Christiancy informed Blaine that the pro-
visional Government had "not yet succeeded in getting the
attendance of a quorum of Congress," that it was not "a govern-
ment de facto in any part of Peru, except in a little hamlet
of Magdalena"; that as to whether it represented the character
and intelligence (or "influence", as he appears to have read

.2,

the diSpatch) the matter was doubtful; and that the Chilians,

 

‘7'!

32 U. S. 47th Cfingress, lst Session, Senate executive
Documents, Fe 79 n 7 .
J- : O I , t O

33 United States. Department of State, Foreign Relations
of the United States (Washington, D.C., 1681), p. 909.

36

who were in control of the country, did not want the provisional
government recognized "until they had recognized it."34

A few days later Mr. Christiancy informed Washington
that the Garcia Calderdn government had not been recognized by
any of the foreign ministers and that he did not think it wise
to recognize a government until it had prove: to be firmly
established. Having had no reply from Mr. Blaine, and no
modification of the May 9, 1881 instructions, although he had
kept Washington fully informed, Christiancy felt compelled to
recognize the Garcia Calderon government. This he did on June
26.35

The United-States press criticized Blaine for recognizing
such an unstable government, accusing him of having a :inancial
interest in the affair, but the related correspondence indicates

eason was his belief that Peru's chances

w

that Elaine's principal
for an earlier peace would be enhanced if the Garcia Calder6n
government were made more secure.

That same month Mr. Blaine replaced the United States
ministers to Chile and Peru, because they had become too con-
troversial. General James Kilpatrick was sent to Chile in place

of Osborn and General S. A. Hurlbut to Peru to succeed Christiancy.

34 U. S. 47th Congress, lst Session, Senate Executive
Documents, No. 79, pp. 501—502.

35 U. S. h7th Congress, lst Session, Senate Executive
Documents, No. 79, p. 505. Christiancy to Blaine, JUne 28, 1881.

37
Within a relatively short time they too had lost their objec-
tivity, car ying on violent quarrels by correspondence and
permitting numerous indiscretions to increase the difficulties
of the countries to Inich they were accredited.

Secretary Blaine's attitude toward the situation in
Peru, Chile and Bolivia, is well expressed in his letter of
instructions of June 15, 1881 to Kilpatrick. He reminded Yr
{ilpatrick of he failure of the Arica Conf- erer cc and of the
belligerent attitude of Chile and Peru toward each other, both
of which brought serious potentialities to tb e office 1fl1ich
Kilpatrick held. hr. Blaine continued by drawing attention to
the recognized right of all people to govern themselves. The
forced transfer of territory would stamp the war as one 01
conquest and the H.nne ation of such territory a sine oua non
of peace, thus disclaiming the avowed reasons for the declara-
tion of war. The United States believed that should such a
momentous step be necessary, it should be acted upon by all
countries concerned. This would be impo ible with C i1e
victorious, the allied armies defeated, and the Peruvian
provisional government under the control of Chile.

Because the Chilean authorities had apparently decided
to support the Garcia Calderon provisional government in Peru,
Mr. Kilpatrick was urged to "with propriety and without
officious intrusion, a prove and encourage this disposition on

the part of the Chilian Government." The State Department

38

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39
have corresnenred with Lynch or Pierola, and that he had been
told that ann.:a iw of Peruvian territory ni ht become neces—
sary 1n the fine treaty. Continuing, Blaine instructed
Hurlbut to attennt, by pleasant but unofficial relations with
the Chilean renresentatives, to gain their sunnort of a non-
anncxation nolicy. Blaine denied that t‘ne United States had
recognized Garcia Calderén because he would be the man least
likely to agree to the cession of Peruvian territory. Blaine
declared that he had desired the recognition of Garcia Calderdn's
government oecause he felt that it was supported by the respon-
sible Peruvians, and gave the greatest promise of being aole
to restore peace to Peru. The Secretary reprimanded Hurlbut
for daring to suggest to the government of Argentina that it
send a 7 Jni ter to Peru, for Chile would. naturally conclude
from this, that there was a plot against her, since there was,
at th- time, an unpleasant relationship between Chile and
Argentina. Furthermore, Hurlbut should not have negotiated
for the cession to the United States of a naval station in the
Bay of Chimbote. Desirable as such a base would be, he had
chosen an unfortunate time for such a scheme.

Blaine added that his government did not understand
Chile's reason for abolis hing the Garcia Calderdn government

0 o -|

Cent. The United States

[-1.

and arresting the provisional pres
had “ECO"anGQ that government in sunjosed agreement 'ith

Cb ilea n policy and since it had received no explanation for the

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Docunenus, no. 0 a. 56+. “0 ooer l -Lwl.

#1
he sternly reprimanded Mr. Kilpatrick in Chile for presuming
to discuss the conduct or language of his colleague in Peru
with Chilean officials.39

Having been assured by the Chilean government that
"no question of territorial annexation would be touched until
a constitutional government could be established in Peru,
acknowledged and respected by the peeple, with full powers to
enter into diplomatic negotiations for peace" it naturally
seemed incomprehensible to Mr. Blaine that Chile had so soon
disregarded her pledge. In fact, her overthrow and imprison-
ment of Garcia Calderon appeared to be an insult to the United
States which had seemed to be cooperating with Chile when it

recognized the provisional president.u0 The Hation asserted

 

"tlat the whole proceeding covered the country with shame and

humiliation."1+1
After the capture of Garcia Calderon, the Vice Presi-

dent, Senor Montero, fled to the mountains of the interior

where he set up his government, first at one place, then another,

replacing Piérola as the leader of the guerrila patriots who

were agreed that they would not surrender the tiniest portion

of Peru to Chile.

 

39 James G. Blaine, Political Discussions, pp. 352-363.

40 Iii—Cl" 13- 363~

”1 gge Nation, XXXIX (Autust 26, 186”), 173°

42
In the surner of 1881 President Grevy of France sug-
gested to Levi P. Morton, our minister to that country a plan

for concerted friendly action by France, Great Br tai and the

United States. After being infmr ”1'06 of this move hr. Blaine
responded "that tris government, while appreciating the high

and disinterested motive that inspired the suggcs tion, is
constrained to gravely doubt the expedience of uniting with
European powers to intervene either by material pressure or by
moral or political in luence, in the affairs of American states."42
President Grevy replied at once that France would be satisfied
if she acted with the United States or if the United States
acted alone.

The European nation of ich Blaine always had the great-
est suspicion, was England. He even called the war an English
war against Peru.43 In the Chilean-Bolivian agreement of
1866, the ”Treaty of Hutual Benefits", Chile and Bolivia agreed
to divide Antofagasta so that Bolivia would administer the
upper half and hile the lower. Soon Chilean financiers rushed
into the entire area, establishing businesses as far north as
Tarapaca by 187%. These Chilean industrialists were often backed

”2 U. 5. Dept. of State Foreign Relations of the United
States (Ias shington, D. C., 18813, p.‘h2o. Elaine to Lerton,

Sept. 5, I881

43 United States. 1H7t1 Congress, lst Session, House
Reports, No. 1790, p. 217.

1+3

l

I*
C.)

by British capital. Fur the evrmore, the largest commer

44

houses in Chile were Eng “181. And, since me v Englisl men

who had remained at home, owned Chilean bonds or owned stock
in commercial houses located there, it was natural that the

English government would be alert to events in Chile.

Mr. Blaine, being greatly interested in the expansion
of United S tates trade in Latin America was, of course, much
concerned whenever he thought British trade, in particular,
was endangering our impe rt- export business. Since English
commerce was so closely tied up with that of Chile, and be-
cause Chile was winning the war overwhelmingly, Englishmen
we uld nattlrally profit - perhaps at the expense of North
American businessmen. This result the Secretary would consider
deplorable.

After the discovery of the gre: t potential mineral

ealth in Peru, that nation was able to sell millions of
dollars worth of bonds in Europe using her guano and nitrate
resources as security for the bonds.”5 Yet, in spite of the
great wealth involved, because of corruption and incompetent
financial management in Peru, interess t on the forei gn debt had

to be suspended in 1876 and was never resumed. Hany of these

bonds were held in France, Belgium, Holland, Germany and Italy

 

88 U. S. 47th Congress, ls t. Session, Senate Executive

Doeum ents, No. 79, pp. 468 -%69 Chris tiancy to Blaine, Iiarch
21,1881.
45

Dennis, Taena and Arica, pp. 67-69.

1,1,
as well as in Ensland. Che various bond owners honed from time
to tir e that one or more of the European countries involved,
or the Unitel States, vouM intervene in the controversy, and
this hope was shared by Peru. But Chile, who did not want any
foreign intervention, convinced some of the European owners

that t1ey JOUld profit more if Chile were victorious, and the

~

United States, naively, plavet right into her hands by force-

V

fully discoura 231118 any Eu.r0pem nintervention, at the same

J.

time failing to act more posi blv vely herself. Accordingly,
after Chile took over the entire nitrate and guano area, he
foreign owners were in danger of losing their investr ents It
is quite likely that at the beginning 01 the var Chile had not
intended to appropriate this landx ri thout regard for the
foreign interests which were involved, ‘ut she was so easily
and so completely the victor that she probably could not see
any reason 1~1hy she should consider herself bound by debts which
Peru had incurred.

Early in the war the bond and mortgage hold rs in con-
tinental Europe devised a plan which thev hop ed would protect
these investments. They organized a French corporation called
the Société Généngle de Credit Industriel et Connercial or,
more connon ly, CTéCth Inclfustriel, Liich was to licuidate the
various elains ag: inst the nitrate t.nd guano beds and pay the
indemnity which obviously Chile sould dema11d of Peru. They

hoped tiat a monetary payment, if large enough, would orest all

f\

a demand for a territorial cession. The conoany was to ad—
vance the money needed to pay the indennity, receiving in re-
turn a trusteeship of the guano and nitrate fields, the
trusteeship to be used for recompensing members of the cor-

poration first, and Peru second.

project did receive some encouragement, but Kr. Blain

(D
\D

C.)

m

Secretary of State, decided to refuse the assistance of the
United States. On Hovemher 19, 188 hr. Blaine sent this
warning to Hr. Hurlbut:

Sir: On the 27th ultimo I sent you the
following telegram: "Influence of your position
must not be used in aid of redit Industrial or
any other financial or speculating association."

On the 2d instant I received your reply in these
words: "It has not been; it will not be." Hy
reason for telegraphing you was the continual
circulation of rumors that the aid of your lega-
tion was earnestly desired to promote the interest
of the "Credit Industriel of France," an associa—
tion which is making efforts to reorganize the
finances of Peru. Agents of the Credit Industriel
had visited the Department of State and ineffectu—
ally end avored to enlist the interest of this
government in their behalf. However trustworthy
the Credit Industriel may be, I did not consider

it proper for the Departm nt to have anything what-
ever to do with it. It is a foreign corporation,
responsible to French law, and must seek its
patronage and protection from France. At the

same time it is no part of your duty to interfere
with its negotiations rith the Peruvian govern-
ment. If it can be made an effective instrumentality
to aid that unhappy country in its prostrate and
helpless condition it would be Agenerous and
unjust to obstruct its operation.. Your duty is
negative, and you will have fully complied with
your instruction by simply abstaining from all
connection with the association. ... I recite these
elementary grounds at the present time, because, if

1+6

an correctly advised, al .anner of schemes are
oot at Line for the reorganize ion of the
rdered finances of Peru , anr the interested
,
e

71"(31-5

ice are seeking: first of all he countenance
nlorsswent o- the American I gation. You
dll exercise the utmost care in any s.ea you nay

she, and if any occasion shall Iris, where the
interposition of this government may aid in restor-

ing the credit of Peru you will confer by tele-

graph with t‘e Deva artnent, and you will take no
important step 1dth out full and explicit instruction}+6

f." C.) J 040 H
:5'1Hob
--;QJ*‘$U)
Ho.

This does not sound like the letter of a person trying
to involve the United St: tes in the 1Mchinations of the CréM

Industriel. Yet that is one of the accusatio ons directed against

 

Mr. Bl i.n ne during the congressional investigation in 1882.

Some people believed that the Secretary had expected to re-

’5.“

ceive a financial return 1r on activ ties of the corporation.

Ho

. I
No proof of such dishonesty was presented, however.*7

Duri the sa ne period in which tr e Cr6dit Industrial

{'3
('1

schemes were being pressed on the United States government,
old claims, res1rrected, were urged insistently upon the
State Department. One of these was that of Alexandre Cochet.
In 1826 this gentleman, who had experinented with nitrates

in his small laboratory in Paris, came to Peru determined to
encourage the commercial use of these caenicals. He spent
a great leal of time t1avellins through Peru stud rag its

many plants, animals anl minerals. As a result of his a; :ten-

 

L , q
*6 U. S. 11-‘7th Congress, lst Session,S ena te L;tecutive
.Docunents, We. 79, p. 564.

#7 U. S. h7th Co onrrers, lst Session, IIouse Report s,

sive travels he node nany valuable discoveries, including a

practical and connerciallv profitable method of converting
nitr e of soda into nitrate of potash. A Peruvian congres~

te

mi al connittee, aft:r a consicera fllS claim, voted
to award hin 6900 pesos ($%,OOO), which he refused ee11PV1ng
it to be much too small. he ciea in poverty in France in
186%.

Years later, a Jacob S; weer; organized in Kew York a
Peruvian Corporation which claiued ne-third of all the
nitrates and guano which

extravagant demand was l‘ased on a claim bought fron an i1—

lezitinate son of file"; r re Cochet. inother claim wtiei

Shipaere was backing was that of Jean and John Landreau. To
Yr. o-aine this project appea red to have greater validity and
to be deserving of more serious attention by the United States.

Jean Theophile Landreau was a guano prosoec cor who had dis-

.. V-

covered thirty—four new renos it s for the Peruvian govern-

ment at a tine when it badly needed an additional source of

J" 4—7

revenue. As payment, he had been promiscc ten percent of the

profits from the new deposits. Later he rccuested a settle-
nent of his claim but was refused. Consecuently he gave a
half interest to his brotier John, a resilent of Louisiana,

who had helped him financially in his ac Hivi ties in Peri.

.0 “cu on John Landreau appealed to the United States govern-

I»-
'~

.4
3

. }( o o
ment for assistance. On February BO, lth this action was

taken in the Unitel States Congress:

#8

Tie Ceifii tee on Foreign Aff‘ airs, to when
was re?err<- tzie petition 0? Jo C. LanCreau, a
naturalized ci tizei of tic United States, for the
aid of the Gov rr gent of tie United States in the
furtherance o:?11is claim against the government 0.
Peru, have (irecter no to submit a reoort, accom-
yanied by a joint resolution, vhieh I hope na' be
out on its nassage n«u. It ... sinnly grunts in
behalf of a eitiren of the United States the foot
ofiiees of the Presicent and Secretary of State
in the settlenent of a clain against a foreign

8.5800.

‘ g}

be ins

Landre.

John L
tract

to Per

uatic
Landre

government. ...
The Jt. Res. (h. R. Xv. 2-?) ... was read a

first and second tine. It nrovides that the neti—
tion, ... the reoor t thereon, and th cconnanving
hafiers be ‘r'nsni’tec to the Executive ersrtuen
vith the recrest taat the Pres ic;ent taze such

steps as in his opinion may be proper and in
accordance "ith internat ional law to secure ... a
final settlement and adjustment ... a d the t if

in his oainion it is nroner to do so, t:.e President
invite the governncnt of Fr rsnee to co— one ate

vith the United States in his b“ nalf.

me and

(‘3

i-J'

Later the joint resolution was re.d a third t
. Hr. Blaine was not being at all bold. therefore, when
tructed Ir. hurlbut on August h, 1881 to aid Mr. John

4-1

on. The Secretary of State emnnasized tee belief that
andreau was an American citizen holding a legal cen-
tr‘n'? 1w rr n 113'." “a ..nr‘nt'i 'F‘ V. _ 7". d "0
“Niel Quaran iec ceinensation lor SeerCCS -en ere

‘ . J . L‘fi n vv' w .
u. T118 contract succified that an. ens: _ns cues tion

;su's contract, th -e Peruvian Supreme Court ruled tiat

 

1+8 ,
Uniter States, 46th Consress, 2d echelon, Cunennonln

and by the wording of the contract the Lancreaus were forbid-
den to seek further action. This iniustice hr. Hurlbut was
to bring to tie attention of the Peruvian "o‘ernnent He
should inform it that the United States would expect Peru to
orovide means whereby a judicial decision would be made on

‘

the La ndreau cl.ein. In the event that the ruling or decision

C.‘

61: not render justice to the nlainti l, the inited States
would expect the government of Peru to take one of these three
steps: ”Sunjly an impartial tribu.al, extend the jurisdiction
of the present courts, or submit the case of andreau to
arbitration."

Furthermore, if the forthcoming treaty transferred to
Chile, Peruvian territory which Leld ngano dcnos its waich had
been located by Tean Lancrea.u, a clause in th e treaty should
guarantee him the amount specified in his contract. Any
transfer of land to Chile must carry a lien to cover the
claim. Both Chilean and Peruvian authorities must fully
understand the contract, so that any peace treaty would insure

1+9

a fair settlement for the Landreaus.
’J- 1 T 41“- ° " 1' was":
th suca clear anu forthr ri Eit eV1oence as tJlS a. ll-
able to us Mr. Blaine must be cleared of dishonesty in his
cons i6eration of the cases discussed. However it is easy to

understand that such an approach would be very annoying to a

foreign nation.

 

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The 6eath of Psesident Jarfield on September 19, 1561
was one o? the bitterest blows the t Secretary Elaine had

ever had to ace. Hot only had he lost a close friend and a

‘

1ad LCUQHCCd upon him for aevice, but he could

-

president who
see his low7 cherished dreans 10? a closer relat ”on hip with

La tin At1erica crurbling into dust. The new president, Chester
A. Arthur, was a cautious, indecisive type of man who had the
support, not of the progressive, statesman ihe members of the

V

Republican party but of politici ns wnose principal aniition

C.)

was the political destruction of James G. Bla -ine. Although
Arthur listened sympathetically for a time to Elaine's sug-
gestions, it was evident that Ml.ine was soon to be released
from his position as Secretary of State. All his friends
despaired with him, fearing that the worthwhile plans he had
developed were deemed.

Iaving realized the utter hopelessness of attempting
to formulate an ad implement a decisive but fr1ien6ly policy
toward the disputant nations with such men as Hurlbut and
Kilpatrich as his agents, Secretary of State Blaine deter-
mined to send a special mission to the area. On Hovenber 30
he commissionel M2..Willia.11 ncrnry Tres cot one of our most
able and accomplis H1ec diplomats, as envoy with the position
of minister plenipotentiary to t11e republics of Chile, Peru

Bolivia. It was to be his resp ibility o Elan6le all

matters connected with the peace settlement w’ 1ich 1.ere in

any way the concern of the Jnited States. The Third Assis
Secretary of State, Walker TElaine, accompanied him as his
as is tent, and later, as a result of the death of Kilpatricn,
0 Chile, to rer ain until the
arrival of th; new United States minister to thrt country.
Before Er. Trescot le“t for South America the Secretary
of State gave him eetailed iniormation concerning the War of
the Pacific and instructions which he Siould follow in deter-
mining his policy. After infernins 1im of the eve ents iniich
had preceded the apprehension of President Garcfa Calderon by
Chile, Hr. Blaine explained the awkward position in w
this action had placed the United States. The envoy was to
ascertain if Chile‘s recent actions had been a deliberate
slap at the United States. If such an attitude was avowed,
then it was possible that dialonatic intercourse between the

two countries would be suspended. However sued an outcome

was not anticipated. Any reasonable erpl an atio n was to be

C'"

the "dis-

:

accepted by him, provided1 it did not nece rs Mt
avowal 0 Mr. Hurlbut." Blaine felt that the Chilean govern—
ment would probably complain that Hr. Hurlbut had followed

a course which had complicated the peace negotiations and
bolstered the determination of the Garcia Calderén govern-
ment to resist Chile' 3 just dexlands -— just, that is, in the
ts people. Kr. Blaine

eyes of the Ch ilea n government and i

continued: "If you should fortunately reach the point where

5’2
frank, mutuel exnlanction can 0 male without the secrif ice

to it elf

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9 you

yer y, conforming your exol: na.tion to the
recent instruction to Hr. Kurlbut, with a copy of which you
are Turni shed, to show to the Government of Ct ili how much

both his worcs end acts have been misconceived. "50

The orinary objectives of the Presid;nt of the United
States were, the Secretary went on, the avoilance of further
bloodshed, the achievement of a more pleasant relationship
between Chile and Peru, and t tenance of a respectful
attitude term rd the United States. If Chile would evince
a s1 ncere deternfi n3 tion to aid Peru, either in restoring the
Garcia Calderon government, or in estrblishing another in its
place which would be able to act intenenoentlr of Chile, he
would be satisfied. Any oth -er cor verse should
for as would be consoncnt with the consi€_eration due an
indeocndent netion.

Mr. Trescot "‘oulo meLe it clear that the United States
he rirhto f Chile to en adee_uate in(-e - nity or to
the cession of territory if Peru were not eble to mate a
suit ole “~V”e1t But absolute ceneuest would be dangerous

to all American nenublics. "Th's Governncnt ... holds that

between two inceocndent no. tions, the more cristcnce of war

 

1

does not confer the right of coneues t until the failure to

-

° J.

furninh the indemnity and Suarantee Vhich can be rightfully
, r1
demanded."x*

FT“ 4- . .fi .A n H /
...-IQ tori-3115-3 C‘TCLLCG 0.; laraf‘fica

Cd
1J0
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1 air ne ncon:

ent with justice, since teat nrovince alone,

nity. Further on he continued: "If our food or

.. _ ‘ , - .1- ‘1. ”1.1... '1 .1 pfi .1, . '
rec from any :Lu3 10? ebl1hation to Le 1n11uence_ in

its action by the n_os1mi01 which C

cannot be confined to Chili and Peru, but wiich thre ten

with extreme danger the political inscitutions, the neeceful
,J
a o o o f)
progress, and th e liberal civ1lization of all Imer1ca."9e
f,_howevcr, a 1ricndly relationshin were reached be—

tween Chile and the oLitel States fir. Trescot should:

(1 ) Assist Peru in the eeteoliS”

#-
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government and in the COM’ADCOleflb o: negot

(2) Attemot to oersuale Cnile to begin the negotiations

(

° "' — -. .-' -— - a. ‘ 7' 0M 'q a J'-
w1thout demencing the CCrSLOM 01 teriitory c; e orecen Sb

1

condition; and

 

O .: . O I .-. ' ._. - fir j
12-311A3, Poln.u1cel.Ikxscu:WLLons, 7. 3 --.

\51

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:lCi1e, Political Discussions, o. 371

Nr ‘2 4- ‘ 1r (1‘ ' ‘ ’. ‘ ’ ‘q I: ‘7 . J'- .2_'_._‘ J'- n .
nor11tcnt CC 1nc UQlCl 1011c 1mess -P tne VrKns“er of
.1. .2 J- - , J. v .9 - -1 - J. 1. .° 4.: - :~ . 4.7
terr1tor*r no P rn CO C 110 ‘OulC not te UUSbllle bx tee

H J— " 4“ 0 (‘\ -- N '0 J. O -o ‘ I '
Re Jivnnw th.t t e ”in_ “r otietisns -er 1ence 'oule
fi ~ -7 ' .1 "“ ‘3 nJ’ ‘ ~vn 1. 0 ‘r . ‘
be celayee, on 1nternc<1cee con; ere1ce tes suggestee 111cm

.1 - .- .1. .n - 1 . ,1 .1. .. °
woulc eiscnss er ens e ents “or tne 1tcr Leeting.

f‘.)

“We instructions encce vi n the connent that it v s the
wish of the tnited States that a just and enoraole re ee be
effectel at the eerli:st possible moment. If :3nv ot1er Am r—
icen governnent could assist in bringing about this neoee,
the Unit ed Ste tes woula give
Uhen Mr. le sect and Uslke Elaine arrive: in Peru and
in Czil they were greetefl with great eztnusiesn. ns
letter frote hone: "It vonld really net do
how grest lions the menoers o; tne conuis51on ere. Peru res
alnos rt our feet, end every one in Chile is devotion 'tself.
If we cone out successfully I er set to have a statue erected

exo ense . " 51”

:34.

both in Line end in Srntiago at oublc

 

Eitecntiv
1 g! n

53 U. S. h7th Congress, lst S e
3.01:, DOC. l, _l.’~:~.) o

Docunents, Ho. 79, no. l7+-l79. P

 

 

E’F’
)9
4‘ . 1_o 4- _Lo“ , “-9- _ .. _go
sat w1t11n a very SHQTU leG -- that a transformation!
4" A n “A ‘ '11" '5’:
Less than a nonth later, Muller Blaine Ceclared:

... our nosi ion here is a the nres— at
moment nest cruelly avxv:rC. I exxcct notH1 n3 now
but nortification to the country anC to all of
us 'crso‘19‘lvas c1 t1 to...) of Che comtry; but,
the reason,lb li ty will not rest u1on any one of
us . Hac fl1ev left us free I rCClly think we
could have (ore so.i et11in3 here; as it is now, I
look forward to nothing. I don't believe that in

my tine the United StC UCS 'ill CVCr get back in-
fluence "ort11consi6erin3 "ith Cny one of these
South A: erican countr ies, and if the denCrtment
had stood firn, we could, I ho1m1-stly believe, h ve
settled the question to t

he satisfaction of all
and to err own (the country' s) Ccvancenent. )3

the interlude. On

arrival in SantiaCo M3. Trescot haC be3nn satisfactory ne3o-
C

{—1.
d-
H.
L3

iatie ens with the new governnen

ii
1.1
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‘or there, too,

new people were in authority. The new foreign minister was

I

Jose h. Balnaceda, one of the most able and exnerienc ed states-

1

men Chile has ever had. Before arrixin3 1 . Trescot hae been
rather he Sinistic abo1t achieving desirable armistlce terns;
but his optimism was strengthened after the preliminary meet-

'th the Chilean officials. But then tht happened!

a.
- '1

The Presiaent anC the State Denartnent of the United States

bungled one of the best opportunities they haC had for

H-

c . Prior to this time this

”a
9.)

beneficent service in Latin 'ner
country had attempted to hold to a firm but respectful course

in its relationshin with Chile, Peru, and Bolivia. It had

 

139, Life of Janes G. Bl'ine, p. 55”.

 

,-
striiwtl'b: 01C I*;fl1 in olxgjLaixg ikn? LC“ ifl:e bccfi"tnr““
possiixc, andstcxfi flit"; C .ilc's ovcrtr’.‘1:1“:1313 victory,
?crlirinf tFCt it TC? i*fi®:t'nt It: futurc “crcc ff” ”uturl
madczsthtiitg in all of A‘C?ica tar” tFe Tlct?“ n13 +r1, “W
“'r‘|"f"‘”-’1‘t:7r‘ '-“."";""-"r‘ ‘7'”‘")"‘ ’3‘": 7qr'n'1“ ”‘1’." fit? 1'0 “r~~.?(\ C‘f‘.(‘$'\ '3
.. .1. ”J -,__ -.--.. .. . x .A‘ .. L- _... U.-K, _...-n v... o ...«s-~.2, L L: .V ----.‘. _. ...IV 4-.., (...
“cw'“rc:i€::t hp? ixiymi .3310; in Uhsli;xiJXi. 33 70c¢“bé?
l? Jrfics G. Elaine UTE no longer Sgcrctcry of State; ezi
vi 14711:“. ..-” "(307:5 :11" S’:¢‘_t‘.: I.t'.:<::°:'_m-.n 307.10}; 133.53 3’??? 71.1217. crirzgj,
tn- new Scerctrry, Frcflerick T. FTCli?“‘“VCO“ béxng 3 legs
f “CCCHl “:9 L132 his “rn<ocvrsor.

Zcfgrc his ?73th 3?. L-1““*“1cfl had wri*ton the Sistc
330“{I“J1Cflt {113% 1M37236 lynx: “Tcrticcfi_ixf Ecifl t“o rxvtjdlvxj
“'18 :T_:1c0”:1"‘-: 76:315.ctrrtiox- 1:". 31:17-0 tint r110 170157.17. :11:
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7nterv1-vefi ““1brrs of both fine now and the 31C afrinistrt—

 

 

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("J—“LA“ 1(‘Hq H r-‘

Arica to be held as security.57 Only a week later, Mr. Trescot
was amazed and morti:%ie on being told by Hr. Balnaceda that

on the way to him from his government were new instructions
which he would find radically owl ngec and that both sets of

' C'L'TI') t' qud b hfb'? ' 71 d 58 4-1 ’ " (’1 J-
inst-Lc ions ha .een 3L iisLe . Le: rning this, LT. irescot

res 11 ed tha further discussions were useless at that time.

Nevertheless, he was oersua1.d te sign a protocol on February

L

11, 1882 as a result of which Chile was to receive Tarapac
an indennitv of 20, CO, 000 pesos and was to hold Tacna and
Arica until the inderaity was paid. The United States con-
demned these terms and urged Chile to mod. fy her clenends but
she refused.59

By‘ n rch 4 Lr. Trescot had received complete copies of

the altered instructions. In then Mr. Frelinghuysen revealed

most clearly the changed policy of the new administration.

The President fishes in no manner to dictate
or make any autlioritative utterance to either
L Peru or Chili as to the merits of the controversy

existing be tween these republics, as to what in-
demnity should be asked or given, as to a chante

. 1 ' . a 4.1. 9 +1 .
of boundaries, 01 as to Che personnel 0 W19 Goveln-
ment of Peru. The President recognizes Peru and
Chili to be independent republics, to which he has
no right or inclination to dictate.

Were the United States to assume an attitude
of dictation towards the South American renublics,

 

\n

7 Ibie., . 61.
58 Ibie., n.

-

59 Ibid., a.

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58

even for the nurnose of nrevc-n ting war, the great—
est of evils, or to fireserve the autonomy of nations
it must be nrepared by ar‘..*y and navv to enforce

its mandate, and to this end te.: arr people for the
exclusive benefit of foreign rati irns .”9

p.

3 ,— -.L
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r»

1... 4..
on as this reveals only too clearly

.L‘, j ,l _ . . fl: " .'-‘- wLn-L - u“ 4- .. .L ' . ‘
use ca.n5ec jollcy 01 b 0 State Deéartnent. .fcer influencing

J. N .g _ v _ '—'---.-.'1 _fi 1
Peru b0 orl-cve that tne T:-e4a Stet es vorlc tel ter her

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friends with Chile. In fact, t1is reversal of attitude caused
many Chileans to feel ccntennt for us.

As Walker Blaine wrote home: "I cennot tell you how
sic; at heart end how LiSSLStCQ I am. We have ne‘e ourse ve s

on ..
..
I

absolutelv centenotiole. reth:n* more humiliating than our
attitude can be conceived, and I cannot but think th t in the
end the nolicy non adopted must be condenned."6l

fir. Treseot in his ;isnatch to Frelinghuysen of Feb-
ruery 3 expressed his bitter feelinjs nest succinctly:

I ould not svnnose tha' itch n instruction
vet :ld be nede publ’m Vhile I Y. 30 vori mg to

 

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..— ‘7..J.’ . .L‘.' "-"‘_: J. '1 “411:. J.
axle..le solution of tile eelicete .nc Ll lictlu
erection. Still less ould I believe that if nv
. -. . .L. ‘ 4-: A1 1‘ r.‘ . . Q 7 v‘ f”: n. .1
original lnSbTthlslS had been seriously no lice,
~~ 4 4-4 ~ - .~ 1 ~-. w” 1- ...
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‘ .‘ _g_ s" 3 LIO _ __i {1/ (_tr
Docnnen s, no. 7, Jan. ‘, lce2, 1.. lso— e/.
61 a r.’(

 

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For

On Harch lo t.wi su“nlementary resolution was accented
by the House: "Resolved, That the Committee on Foreign Affairs
as directed to oer? a.3l from Jacob R. hioherd of New York,
copies or all correspondence betveen himself and any person

1

soever, ane all papers anfi ot3er cvi ' e3c ee in

his 3ossession tending to show what sal d S-ln3(r6 did or

attennted to do to eniorce the claim of the Peruvian Company

or to induce t eU itee. tates to enforce this claim against

charges mad by Jacob H. Shipherd of New York, agent of the
Peruvian Connany, agains‘ Stephen A. Hurlbut, one of our
ministers to Peru, and against the Honorable Levi P. Norton,

1

one of our ministers to France. Kr. Shinherd accused gr.
Iurlbut of bei ng in the pay of the Crécit Industrli el and Mr.
Morton of being impronerly connected with that organization
after his appointment as m3. ister. Unfortunately, Kr. Hurlbut
died just before he w3l nned to leave South America for Wasn-
ington and the congressional hearings.

As aeent of the Peruvian Connony, Shipherd had called

(

on Secretary Blaine on several occasions in the hope of ob—

 

64 .
Ibia., p. 1.

61

taining his backing for that concern. Furthermore, he tried
to interest Gener a]. II,urlbut in his schemes by offering him a

$250,000 interest in the consany. But Mr. Shipherd was re-
garded with disgust by Mr. Blaine, other of Hi ls in the

8 ate Denartnent, 33d by our ministers abroad. Kr. Hurlbut
renortcd, after he had arrived in Peru and investigated the

1
I

that he had no fait3 in Kr. Shinherd or in his schemes

cla:

:3-
‘0

3e Seer et'ry replied on November 17 that he had informed

Mr. Shinherd on three or four occasions the t he cor3ld see no
possible ground on which the United States could aid the
“lav 3ants in the Cochet car e. Any letters received by Mr.
Hurlbut relating to nriva te cl3i_s should be returned to the
sen M.e s at once unless otherwise instructed by the State
Denartnent. United at to locations must not be used as

. O O r
orivate claim  agenc1es.6)

"n

In tes ifying ,Shinhcrd not only 1: iled to apologize

for the ffer he had made Hr. Kurlbut but tried to involve

0

both Blaine and Hurlbut as leeply as nossible. Hr. Blaine
had rebuked Shinherd by letter in December, 1661, for his

inorope° corres oendence with Hurlbut, enraging

Hurlbut13ed been in the nay of the Cre it Industriel from th

ime of his arr ivel in Lima. Hr. Blaine had! ieard ru.ors of

 

6 ‘ 9
5 U. S. 47th Congress, lst Sers1on, Senate Executi"e
Docuuents , No. 79, p. 5e2.

this kind at the tine and had cautioned our minister in these

words: "The infl uence of yo“r mo ition nuSt not be used in

be
t
I

favor of the CTCQlt Industriel or any other sueculetive i

 

terest." Hurlbut had answered: "It has not been and will

not be."66

hr. Shinherd's testimony could not be b eliev-cd, it was
so infiltrated vith 110s and con tra;ictions. He used sub—
terfuge with an art that defied a conte3ot of Ce ngr ress ci
b0 involve Secretary n aine
in any dishonest enteroriscs in connection "itll the Cochet
or Peruvian Cenoanr demands.
. , I

As previously mentioned, Hr. Blaine

more friendl and definitive nolicy toward the Lanereau claim

ta

even though the case was based on the sa :10 interpretation

of Peruvian law as vas that of Cochet.67

1")

f

we

1

’-
5'
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(—i-
,3
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Huzzey avers tn. cult to see how he, J. G.

..J
{3-

ne, had the right to invoke the intervention of our
government in a case which originated in the poor claim of
alien, and which had been voided by the erecu ive author-

a.

ities of Peru with the tacit approval oi the courts. The

 

6 U. S. h7th Congress, lst Sess1on, House Renorts,
No. 1790, p. 106.

67 A Peruvian lair of 18 ‘13 which stated txatz Anyone
discovering oroperty of a sunnressed convent, or any other
hid_een Dronerty belongir" to the state, shall merit a third

part of SHlCl propertV.

language of the House Report was not ex ravos'nt V’s en it

shone of 'the obvious improor1ety of our interncfifiling with

(\
C0

the bad claim of a French adventurer.'"q

J-
DCTV

D

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I 3

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INJO

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m1, 1 ° . .-., , ... ,—'
1ne Coilean government J,» 1 blaming Secre

Blaine for Kurlbut‘s impe tuous acts for, as we have seen,

Blaine clearly and decisively rebuked
vities. Nevertheless, according to Kr. I1szey ,
the root of the trouble "lay_in Elaine's defense of the
Lenoreeu claim. "6
Muzzey was not imo].ying that n1. Bla_ne oao oone any-
hing Gi1s‘11onest. There is no jLstifioation for believing

that he hafl a Tinenciel interest in any of the claims. In

has Lot been the sl'1ghtest intimation or even s.snieion
thot any officer in the Dejar cment 0: State has at any time

had any personal or necn1m1-rv interest, real or contingent,

v p F v A - 7 F" ' . ..
Instead Hr huzzey cla1Lec that la1ne's 1nvolvewent

.O J- ‘_
.L 116‘

 

 

O
6“ Daiic‘ (‘o'rille I-Isze'f, James. G. .2" oine (I: ev 10131:, 19-119),
/ o ,3 _‘ "1‘ 1, .‘ ..., flung—”1* W .,_~ .—
n. 2&0 Citing t. S. e7th Con floss, ”Cu so s_;n, Hous e Re_orts,
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6 (- .‘1 n ‘ ‘ y
9 buzzey, J u. nu Ine, 1. 2+7.
0 ‘ -. o ¢ fl . o 7‘1‘ 4“ I
7 U. S. e7th Congress, ls‘ oess1on, L use Reoorts,

A 0 o J- o 9‘ -.. -. w‘ A w ' .1. o o
Ahej1can c1 izenSh11, he was item; to gross h1s claims to

9v I . , '1' ‘ J“’. *-\ ”t ' x J- ’1‘ ’ J‘ * ‘ ’. r“ ‘ .
guano TOyfilthS even b3 the ~onnu e1 OQSuftCtlng his own ore-
p A t- a n . NI ‘ a 4‘ “ N J" - . A Q , 0. F: - '1 0
1e? ct pur1ose o1 brlhgll’ wees ;eace eetveen C1111 an: Peru.

E1s noliey enVOfirated the latter countrv to believe that the

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1-012210? Can‘CcI"! t0 SUSDGCU that 1.70 were 3016431118 b0 (1617111176

Elaine‘s in is We ce noon CH1 le's recoonitio on of the

_Q ‘

n. 1 . n4". -1 ,3 . 4.- 1‘9. ”.44- ,3! 1- . .- .1
LulQTCCL c .1s Lao eoLVertee c.-e unitea Stat es 1os1.1on from

.0 -1- .4. '4 1. " .-.--1. .n°« °J...: n .1.-
one 01 neL1-t1on to one wnlcn Lenanood cert 1n nositive actions

u.

:1: was ”TCCR iously near an ultina

('1
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C!-
:3

by Chile. Th1

4-.

can ”P”(1uj ee unders toe< why Elaine's resignation ron the

te Deportnent tes hailed with so much t’.1nfal ess bv Chile.

C..— u

h ..- — ‘N‘ ~‘2 xr‘ J‘ “ rt'l‘fi w '6 HA”
lir. slaine ataxia: ..--e tes on;r which 1 s riven e _-ore
. N n ‘ ‘ '1 '1 "'1' (so, .1 'L- ~
the co.::1ttee as long as me cenle CHhUTC 1t, ane blow, on

Anril 1+ rrote the Chairman that he eesiree
the 2%th.to the 27th the Ex—Secretary stated n1s on1nion of

the controversy one nresentee a laroe number of let

nn .F-\— l I

documents.

‘ _o 4‘ ‘ ‘ ' 0 fi 0 A. J... M o , _
During the congressionai antSel: tion some or the most

J-

nuzzl:. ns contradictions were in t?OCMUCC€ as the result of

convcwr ations engaged in by Hr. Blaine, hr. nobert E. Ranaall,

 

the [Leerican couLsel of the Credit Industriel and brother of
the Sp-aker of the House, and Er. J. Federico Elmore, Peruvian

 

'_. _ ,_ fi ”fi" ..2 ., ., I
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a c vith the parent intention of son" ver-
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lie was b ought to me T1. Renflhll end Kr. Elm re
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in an mus n; vein 8 Lout our great HGV’CI strength
01 the Sou h Prcific coast, ontres ing 't with

 

72 U. S. h7th ongress, lst Session, House RCUOTbS,

66

the seven Englisn ironelcds then on the same
st'tion. The Pertile inagiinetion and Eefective
memory of Kr. Rondrll and Ir. Elmore have invested
the incident “ith r significance for "“ieh there
vcs never the slightest justific mn.73

‘ J. ’3" N . __: o ‘r '
In est :tnt inQ to Justify hinself hr. Kendall sent the
1 4. °~r~ :. V“ _1_
follow: n3 messege to tne LQVCStlpctLfl: co ittee:

s7vi‘s that at
Elmore he on-
force of the
wirich he sent
*- .-.'e c0? ner ted

' h _2. o c A
hr. slaine, it will he su n,
an interview with nyself enfl
hibited to us a liS'
("

,4
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for to the Yevy Dejertnent, Lne t
i

together upon it in connection 7..' th the strong: th
of "the seven Englisi iron-cleTS then on th sen
strtio ." ... It riight .e nertinent, ... to izeuire
... why the Secreteryo State shovld heve gene
into a contre~t of our squadron 1ith the 'seven
English iron— cl(o (7.5," if no question of a possible
collision of policy. nnfl inter sts betv,e; the
English and the American Govern:i1ents on issues

2 ising in Sov.th isle: ice had been re srd between
hinsel and his inter loeuters. *

HLeh of the evidence nzesented in the investisrtion res
similariv centre fictorv. Another sonrce of discori was the
nutLal antagonism of Mr. Blaine and one of she eovnittee
members, Kr. Perry Belmont, a young Kev i.er1: Democrat serving
first term in the House. Laving vo11 mteered ‘1is services

0 was insensed at being cross-examined by hr. Belmont.

n
The latter was not hanov Ulth ‘laine's attituee or his e1swers

 

 

73 'v 0 1 '50 qu)
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7 Elli—E a T717- 307-2--3<3§.
7/ Ibid he. lea-ens.

House in vhieh 1e

deiicted fleine es the culrrit who had ly Lis eff1c1ous inter—
ference brou ht us precariously close to ”or "1th Ch1le: "I

4- m-L 4-- 7 a ‘ ‘-. --~ - '
do not Stnbe that tn—re ucs a deliberete puruose ts bring

J

as to such a uass in our relations with the belligerer 1t

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cf

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ne Pacific, but I have stated and have enc7.e€vored
to sun up the r suit s of this diplomacy; and I leave it to

thisI ouse and to the country to decide v1at verdict si1all be

+- J- "76

rendered upon such stevardship of such a tr Sb.
hr. Elrine ended his testi Izony in Congress on Auril 27

m
9.)

with this firn but court e (111 esertion: "I have nothing to
withhold. I court the nest careful and sear ehing in estiga-
tion into these matters. If there is anyc chapter in my life
of which I an proud, and of the complete and absolute

F

connection with th e uolic 3 laid down by the ndninistration of

O
—‘
J. _4--

. . r7
President G rf old with respect to the South American statesfl”7

On July 23 Walker Blaine wrote his father: "The resolu-

‘

tion directing that the investigation should be closed was

introduced on Friday last by Mr. Rice and adopted unanimously

by the convittee. Its object vas to end bfle investigation. ...

 

 

/

70 U. S. h7fi Con.ress , lst Session, Con'ress1ona1 necore,
D. 5647.

77 U. S. h th Congress, lst Session,
No. 1790, p. 2&2.

v

House Reborts,

68

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attempts to a1€ tbe unc.wer (We ,Peru.“l Le 1n515tc€.that our

..: J- :- -m- . ‘ u ‘
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rm .’ -’-‘- - r. -' -’ ~ ' 7 J-’ " v 'I“
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power he was constantly be set bv ““31301" V'iliCI involved

7
1...‘ : h. a 'J-,\" - , .. a
Euroneen as well es nuerlcan Cofilbt.lStSo Actnelly tne Euro-

pean notions concernen had always ecei ”ere clos ely related

in the Western Henisnhere. Above all, Blaine si. ncere3 y vented

to have setisfiel tne levitinate claims of United States

nave been much more suc-
cessful in seconn'ishii these objectives if it had not been
for the untimely death of Presidelzt Garfield. The new admin-
istrction in'Ueshington, so bitterly onposed to Ble.inc's

Latin Anesicen {OliCiCS, b? on ght an end, for a time, to his

dream of a closer, more 'rienflly relat :Lons in rith Latin

 

probed.

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as Blarne, 'OULQ 31 333 leave 3 senLcacc

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versecion o; the Secret 3ry vith E] TOTG

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America in the f3ll of 1°81.C4 mmic-l

were more fully

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which would satisfy everyone C3n n vcr be eechec,
8 2 I ‘ ‘1 J. ° . TVA - j - J—
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7 w - f) k: _A Y‘ _: o 0
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83 Ibid 3
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Cou3cil of Le3rned S'eicti 3. C3fibridqe, 3:38.,

19“ . Published 3::u3lly. Books 313 orticles

in H3.jor lsnguanes: 33rtly 3“3*t t39.
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