No. 22.]

Mr. Loomis to Mr. Barrett.

DEPARTMENT of State, Washington, September 23, 1904. SIR: You are instructed to request the Government of Panama, as an act of comity, to surrender to John T. Connors, the extradition agent, Herman E. Haass (alias Frank Edwards), charged with embezzlement from a national bank, with a view to his return to the United States for trial on that charge.

Mr. Connors, who carries the President's warrant, will hand to you the papers. After authenticating them you will present them to the Panaman foreign office in support of your request.

I am, etc.,

SIR: I have the honor to report that John T. Connors, a Pinkerton detective, furnished with an extradition warrant from the President, arrived in Panama on the night of October 3, for the purpose of taking into custody the person of Herman E. Haass (alias Frank Edwards), alleged to have defrauded the National Corn Exchange Bank of Chicago of approximately the sum of $20,000.

Through the kind and efficient cooperation of the authorities of Panama I was able to send the detective back to New York with his prisoner on the steamer sailing from Colon on October 4. Mr. Connors seemed much surprised, and stated that in all his career he had never been connected with a mission conducted with such celerity. After taking charge of the money found on the person of Haass, the detective left here in care of the chief of police the sum of $80 gold to defray the expenses of the prisoner while on the Isthmus, as follows: Hotel Colon, $16; maintenance in Panama, $44. I have the honor to inclose receipts for the above amounts, and also the sum of $20, being balance remaining from the $80 left by Mr. Connors. There will also be found inclosed a copy of a resolution from the Panama Government giving up the person of Haass, at the request of the United States, as an act of comity.

I am, etc.,

JOSEPH J. W. LEE.

[Inclosure.] Resolution.

The Government of the United States has requested through diplomatic channels the detention and surrender of the American citizen Herman E. Haass, alias Frank Edwards, charged with a crime.

As at the present time there exists no extradition treaty between the United States and Panama, this request was made as an act of international comity; and as article 18 of the penal code of the Republic, founded upon the mutual

duty of States, permits extradition in cases such as this, the detention of Haass was ordered until the necessary documents should be received.

Such being the state of affairs, the chargé d'affaires of the United States informed the Government of Panama that a special officer of his Government had arrived at Panama to take Haass in charge and to convey him to the United States, and the chargé d'affaires requested that the individual in question be delivered over to the officer, and also presented various documents, duly authenticated, which set forth that Haass had defaulted from the National Corn Exchange Bank of Chicago with, approximately, $20,000, and therefore the agent of the police was sent to take him in charge.

In view of the before-mentioned statements and considering the crime with which Haass is charged is a grave one, and that the punishment therefor will exceed five years' imprisonment according to the law of the United States, it is resolved to aequiesce in the request of the United States for the extradition of the American citizen Haass, alias Frank Edwards.

This department will expect, in due course of time, a copy of the indictment and sentence of the said Haass, in order that it may have in its archives all the papers relating to the case.

Let this be copied, communicated, and published.

DEPARTMENT OF STATE, Washington, November, 19, 1904.

SIR: I inclose herewith a certified copy of the indictment and sentence in the case of Herman E. Haass for transmission to the Panaman Government, in accordance with the request made by that Government at the time of the surrender of the accused.

I am, etc.,

JOHN HAY.

SEDITIOUS AND MUTINOUS CONDUCT OF THE ARMY OF PANAMA.

Mr. Lee to Mr. Hay.

* *

No. 66.] AMERICAN LEGATION, Panama, November 14, 1904. SIR: * At midnight yesterday (Sunday) I was called up by the alcalde of Panama and Raul Amador, son of the President, and consul-general for Panama at New York. They had been sent by the President to inform me of the discovery of a plot by General Huertas and Dr. Belisario Porras to arrest President Amador and Mr. de la Guardia, minister for foreign affairs, this morning (Monday) at 6 o'clock while attempting an inspection of the troops in honor of the minister for foreign affairs, who is also minister of war. General Huertas had written to the President in peremptory terms demanding that he be present at the ceremony. I advised his Excellency to remain at home, and this he did, finally, but with misgivings as to whether it would not be safer for him to go, because he feared that General Huertas might send men to take him by force.

The U. S. S. Bennington was due here yesterday to take aboard her commander, Capt. Lucien Young, and I informed the President simply of the fact that she might be sighted at any moment.

At half past 5 this morning I was called up by President Amador's private secretary, sent by the President, to ask me to call a force of marines from Empire, in the canal zone. This proposition I would not entertain. I, however, conveyed the information in a decided tone to General Huertas that article 136 of the constitution of Panama stated the right of the United States to interfere for the preservation of constitutional order if necessary; that I considered it high time for such proceedings as he contemplated to cease, and that I was sure that he had the best interests of his country at heart and did not wish to stain the fair fame of Panama.

The minister for foreign affairs went alone to the review and no attempt was made to detain him.

* *

*

I am, etc.,

JOSEPH W. J. LEE.

Mr. Loomis to Mr. Lee.

[Telegram.-Paraphrase.]

DEPARTMENT OF STATE, Washington, November 15, 1904.

(Mr. Loomis instructs Mr. Lee to confer with the President of Panama, and to tender, under the provisions of the treaty, assistance from the Government of the United States in suppression of the seditious and mutinous troops, if such be desired by the Government of Panama.)

No 70.]

Mr. Barrett to Mr. Hay.

AMERICAN LEGATION, Panama, November 22, 1904.

SIR: I have the honor to report as follows on the events which have transpired since my arrival (Wednesday, November 16), and which have been the subject, in part, of telegrams I have sent to the Department, confirmed in accompanying dispatches.

After Mr. Lee, secretary of legation, had fully described to me the incidents of the few days preceding my arrival, including the attitude of General Huertas toward President Amador, I went to Government house to present my compliments to the President upon my return and to hear his description of the situation. He told me that a crisis was at hand, which must end either in General Huertas's resignation, retirement, or leave of absence. He also suggested that Panama would benefit by the disbandment of the army. He concluded his statement with the request that I should arrange with Admiral Goodrich for the detention of one of the ships of his squadron until the difficulties of the hour were adjusted, and intimated that he would like to have the marines ready to act if necessary. * * *

On Thursday I accompanied Admiral Goodrich and two of his staff officers to call on the President, and again took up the discussion of the situation. Admiral Goodrich, who had previously informed me that he had received instructions from the Navy Department to cooperate with the legation and to use all the forces at his command,

including the marines, at Empire, to maintain order if requested by the President, then repeated these instructions to the latter and said that one at least of his ships would remain near Panama as long as was desired by the President. It was then decided that the President should notify Huertas that his resignation would be expected that day or early the next morning, and, if he attempted any resistance with the soldiers under him, the admiral and I would cooperate to support the President and to prevent any disturbances or mutinous acts of the soldiers. In the meantime the admiral ordered Major Lejeune at Empire to bring to Ancon, near the border of Panama City, one company of marines. Their presence there at a point where, within fifteen minutes, they could reach any part of the city, and the proximity of the American squadron in the bay had a most excellent moral effect on the city and practically precluded any efforts at revolution. Thursday afternoon General Huertas came to see President Amador and told him that he would send in his resignation if the President desired it.

Although Thursday night many of Huertas's friends and followers, including several prominent men in the liberal party, advised him not to resign, he evidently saw the folly of holding out and prepared a long letter tendering his resignation. This he sent to President Amador early Friday morning, and in the presence of Mr. Lee, secretary of legation, the President signed a decree accepting the resignation and placing Huertas practically on the retired list at $500 per month. That same morning, in response to the invitation of Admiral Goodrich, the President made a call upon the flagship New York, and was further strengthened in his purpose to be firm in this difficulty by his conference with the admiral. Friday afternoon, accompanied by Mr. Lee, I again conferred with President Amador and Minister Guardia in regard to the disbandment of the army. As the President had already assured them that he would give them sixty days' pay upon their dismissal, I suggested, as a safeguard against the soldiers taking all of this money and so feeling that they were under no obligations to the Government, that they should be given thirty days' pay upon disbandment and the other thirty days' pay a week later on condition that they behaved themselves. The President approved of this suggestion, and also decided to close all the saloons and drinking places for three days, so that the soldiers, tempted by so much ready money, would not have the opportunity of getting drunk and excited, as they would if everything were left open. In the meantime General Huertas had written a second letter to the President, stating that practically all the soldiers, approximately 200, wished to be disbanded at once, on account of their love and regard for Huertas and their desire not to remain in the army after he, their commander in chief, had resigned. This was deemed a good opportunity to disband the force without further delay, and I advised President Amador to permit them to go at once, especially while we had the naval force at hand in the bay and the company of marines at Ancon.

It was finally arranged that the soldiers were to report at the Government house at 1 o'clock Saturday to be paid off upon the terms of the Government. By 2 o'clock they had not put in an appearance, and President Amador sent for me to know what was the best thing

to do. He was afraid that the army might have decided to resist. his terms, especially as the friends of Huertas and of the army were doing all they could to make them show some resistance. Upon my arrival at Government house I advised the President to wait half an hour more.

* * *

Just before the half hour expired the first detachment of some fifty soldiers came marching, unarmed, to the Government house, followed by a great crowd. When they halted they sent up word to the President, evidently not knowing that I was there, to the effect that they would not accept the Government's terms of two payments, but they demanded the whole pay at that moment. The President was naturally much disturbed at this ultimatum, and asked me what he should do. I immediately told him to be absolutely firm and yield in no way to their demands, emphasizing that they had already been guilty of gross insubordination. This word was sent to them, but they still persisted in their position and muttered threats against the President.

When this word came up from the street I saw that there must be no further delay in bringing matters to an end, and taking General Guardia, the minister of foreign affairs and war, with me, I went downstairs and out upon the sidewalk in front of the soldiers who were there assembled. In brief words I told General Guardia to say to them that the United States, with its forces, stood back of the Government in this crisis, and that they must accept the terms of the Government or accept the consequences. They were warned that if they did not accept these terms and engaged in any acts of insurrection, riot, or mutiny, they would be dealt with in a most summary way, and that if necessary the naval forces in the bay and the marines at Ancon and Empire would be used to maintain order, with the severest punishment for those who were responsible for disorder. This warning had the desired effect, and the soldiers immediately declared that they would accept the terms of the Government. Within two hours afterwards the entire army, with the exception of about three men and twenty officers, who were faithful to the Government and who would meet the statutory requirements for a standing army, had been paid off and disbanded. From that moment there has been absolute quiet, and the feeling is general that the crisis has been successfully passed. The disbanded soldiers have so far committed no acts worthy of notice, and by the time they are paid the rest of the money due them public interest in their doings will have so diminished that they will not find excited sympathy for them among the people, as there was Saturday night. General Huertas left yesterday for his country home, or ranch, at Agua Dulce, about 100 miles east of Panama on the Pacific side of the Isthmus.

As stated in my cable of yesterday, the business community and the Government are most grateful for the attitude and action of the legation during this crisis.

I would supplement that statement with the further information that I have taken no part in these events that was not entirely warranted by the conditions or inspired by the request of the President himself. There has been no actual interference by the forces of the United States, and no step whatever has been taken by the United States officials which has not reflected full credit upon our Government