No. 384.
Mr. Gibbs to Mr. Evarts.

No. 320.]

Sir: On the 12th instant I read in the morning’s edition of El Comercio that on that date there had arrived from Valparaiso, in Chili, and intermediate ports, the steamship Itata, under the American flag.

I wrote a note to Mr. Clayton, United States consul at Callao, in reference to the statement, requiring an answer. I inclose copy.

Before receiving an answer the evening papers of the same date confirmed the information given by El Comercio. I then wrote Mr. Clayton, as per copy inclosed, requesting a meeting with Captain Barclay, Lieutenant-Commander United States ship Onward.

On the 13th I went to Callao, held a consultation with Captain Barclay, and gave him verbal instructions of what I thought it would be necessary to do.

Mr. Clayton wrote me on the 13th, sending to the legation copy of the bill of sale, as inclosed.

I sent Mr. Clayton by Captain Barclay written instructions what to do, as per copy. I also conversed with Captain Barclay, and requested that the instructions be carried out in a quiet way, to inform the captain, or in his absence the chief officer, that the flag must be lowered, should not be hoisted again, and instructions to Mr. Clayton to return the papers and give no clearance. These orders were carried out satisfactorily, and the Itata sailed for Valparaiso and intermediate ports, under her true flag, the Chilian. I inclose copies of Mr. Clayton’s report, and the clearance given by the consuls at Valparaiso and Iquique.

The Itata, Loa, and Rimac are three large English-built merchant steamers belonging to the Chilian Compañia Sud Americaña de Vapores. They formerly were in opposition to the Pacific Steam Navigation Company, but some time ago were, by contract, taken by this company and run in connection with the English boats, all under one agency.

It is thought that, owing to the threatened rupture between Chili and Peru, the owners had them transferred by sale to a person named Henry L. Stevens, an American citizen residing at Valparaiso, with the idea that this simple sale gave the right to carry the American flag.

I have been informed that the sister ships are also carrying the flag. If they arrive at Calloa during my stay here, I shall pursue the same course as with the Itata—order the flag down.

I will call the attention of the department to the fact that, as far as I can learn, and by the papers presented, the captain and crew were all aliens, with the exception, I understand, of one person in the crew.

I did not call upon the Peruvian authorities, which I suppose I had a right to do, to order the flag down, but used simply the moral force of an intimation from the United States minister. Any other course would have complicated matters here, and at the present state of excitement could easily have been made a source of trouble.

I have, &c.,

RICHARD GIBBS.
[Page 862]
[Inclosure 1 in No. 320.]

Mr. Gibbs to Mr. Clayton.

Sir: By the Commereio, of this day’s date, I see that it reports that the Chilian steamer Itata entered the port of Callao under the flag of the United States of America.

You will please inquire into the truth of this statement and report as soon as possible to this legation.

I am, &c.,

RICHARD GIBBS.
[Inclosure 2 in No. 320.]

Mr. Gibbs to Mr. Clayton.

Sir: I wrote you yesterday relative to the steamer Itata sailing under the American flag. I have seen since the statement confirmed by last night’s papers.

You will please send word to Captain Barclay of the United States ship Onward that I will meet him at the consulate on official business. I will go down on the eleven o’clock train.

I am, &c.,

RICHARD GIBBS.
[Inclosure 3 in No. 320.]

Mr. Clayton to Mr. Gibbs.

Sir: In answer to your dispatch of the 12th instant, I have the honor to inform you that the steamship Itata, one of the vessels belonging to the South American Steamship Company, arrived at this port, on the morning of the 12th, from Valparaiso and intermediate ports, flying the United States flag; that about eleven o’clock, same date, the purser of the said steamer Itata appeared at this consulate and informed me that he desired to enter the said vessel, and, at the same time, presented me with a bundle of papers, which, on examining, I found, first, a bill of sale of the said steamer Itata to one Henry L. Stevens, an American citizen residing in Valparaiso (copy of which is herewith inclosed); also, a document inclosed, “United States Consular Instructions, respecting American or foreign-built vessels transferred to citizens of the United States of America,” which, on examination, I found to be nothing more or less than Article XVII and paragraphs 219 to 226, both inclusive, of the Consular Regulations; also, two certificates of clearances, one dated Valparaiso, March 1, 1879, and signed P. A. McKellar, United States vice-consul at said port, and the other dated Iquique, March 7, and signed by J. W. Merriam, United States consul, and shipping articles containing the names of sixty-six men, which was also made put and signed by the United States vice-consul at Valparaiso.

As I am of the opinion that the steamship Itata has no right to wear the American flag, she being a foreign-built vessel and commanded by an alien, I hasten to lay the case before you for such action as you may deem proper.

I am, &c.,

ROBERT T. CLAYTON,
United States Consul.
[Inclosure 4 in No. 320.]

consulate of the united states of america, at valparaiso, republic of chili.

I, Petar A. McKellar, vice-consul of the United States of America for Valparaiso, do hereby certify that the hereunto annexed bill of sale, bearing date the 21st day of February, A. D. 1879, of the late Chilian steamer Itata, measuring 1,129 tons, according to [Page 863] United States measurement, having three decks, schooner rig, two masts, round stern, cut-water, and figure-head, built of iron, 300–horse power, sold and transferred by Horatio Lyon, manager of the Compañia Sud Americana de Vapores, unto Henry L. Stevens, is in form and in substance valid and effective in law, and has been duly recorded in this consulate; and that the said Henry L. Stevens is a native citizen of the United States of America.


[seal of consulate.]
P. A. McKELLAR,
United States Vice-Consul.

Know all men by these presents that I, Horacio Lyon, manager of the steamship company entitled “Compañia Sud Americana de Vapores,” for and in consideration of the sum of $150,000, lawful Chilian currency, unto aforesaid company well and truly paid at or before the ensealing and delivery of these presents by Henry L. Stevens, a native citizen of the United States of America, residing in Valparaiso, Republic of Chili, the receipt whereof is hereby acknowledged, have granted, bargained, sold, assigned, transferred, and set over, and by these presents do grant, bargain, sell, assign, transfer, and set over unto the said Henry L. Stevensand his legal representatives the Chilian steamer Itata, together with all and singular her boilers, machinery, furniture, tackle, apparel, and appurtenances, as the same now exist, and as the said steamer is more particularly described in a certificate of admeasurement thereof, on file in the United States consulate at Valparaiso, whereby it appears that said steamer has three decks, two masts, schooner rig, round stern, cut-water, and figure-head, built of iron, is propelled by screw, worked by compound direct-acting engine, with surface condensers of 300 horse-power, is in length 290.7 feet, in breadth 39.9 feet, in depth 19 feet, and measures, with the necessary deductions for engine space, 1,129 tons, according to the United States measurement: To have and to hold the said steamer Itata, and the appurtenances thereunto belonging, unto the said Henry L. Stevens and his legal representatives, to the only proper use and behoof and as the proper goods and chattels of the said Henry L. Stevens and his legal representatives from henceforth forever.

And I, the said Horacio Lyon, as manager of the “Compania Sud Americana de Vapores,” do hereby covenant and agree to and with the said Henry L. Stevens and his legal representatives that at the execution of these presents the said steamer, called the Itata, together with the appurtenances thereunto belonging, is the true and lawful property of the “Compañia Sud Americana de Vapores,” said company having full right and authority to sell and dispose of the same, and that she is free from and clear of all claims, incumbrances, or demands whatsoever.

HORACIO LYON, [seal.]
Manager of the Compañia Sud Americana de Vapores.

Signed, sealed, and delivered in the presence of us:

P. Bourchier,

August Moller, Jr.

I, Peter A. McKellar, vice-consul of the United States of America at Valparaiso, do hereby certify that on the day of the date hereof before me personally appeared Horacio Lyon, manager of the Compañia Sud Americana de Vapores, and in my presence and in the presence of the subscribing witness thereto, signed, sealed, and delivered the foregoing bill of sale of the steamer Itata, and acknowledged the same to be as well his own act and deed, as the act and deed of the aforesaid company. Given under my hand and the seal of this consulate, the day and year aforesaid.

[seal of consulate.]
P. A. McKELLAR,
United States Vice-Consul.
[Inclosure 5 in No. 320.]

Mr. Gibbs to Mr. Clayton.

Sir: Your communication of yesterday’s date, with inclosure relative to the steamer Itata, has been received. The bill of sale of which you send a copy gives no right to carry the United States flag. The Article XVII, sections 219 to 226 inclusive, of Consular Regulations, of which copy was given to you by the purser of the steamer, is no evidence as regards the vessel’s nationality; to the contrary, section 226 states clearly “The privilege of carrying the American flag is under, regulation of Congress, and [Page 864] the statutes have not made that privilege available to any ships except those duly registered or enrolled at some custom-house.” According to section 4132, chapter 1, Title XL VIII of the Revised Statutes of the United States, no vessel can be registered or enrolled at any custom-house that is not wholly built in the United States, or a vessel captured by American citizens and condemned as a prize. Therefore the Itata is not entitled to carry the flag of the United States.

You will write an official note to the captain of the steamer informing him that according to the laws of the United States he cannot use the American flag as a national one, and if he persists in flying it he must take the responsibility of forfeiture of the vessel. I would recommend that you go in company with Captain Barclay and another officer of the United States ship Onward, and present the note to the captain in person, or, in his default, to the chief officer.

I think there has been a misconception of the United States laws in this matter, which give American citizens the right to purchase foreign shipping property, and the United States Government would protect them to a certain degree, but not allow, in any case, the use of the flag, an emblem of nationality that can only be used afloat on American-built vessels, or those legally condemned as prizes.

You may return the captain the papers deposited in the consulate, but I doubt the right of your giving him a clearance or any other document, as you may be complicated according to section 4191 of chapter 1, Title XLVIII, or section 5423, chapter 5, Title LXX.

I think it necessary that you take copies of the clearances given by the consuls at Valparaiso and Iquique, and send to this legation certified copies also. And, if possible, I would wish a copy of any clearance that may be given to clear the Itata from Callao by the Peruvian authorities.

I am, &c.,

RICHARD GIBBS.
[Inclosure 6 in No. 320.]

Mr. Clayton to Mr. Gibbs.

No. 34.]

Sir: I have the honor to acknowledge the receipt of your dispatch of the 14th instant, in regard to the steamship Itata, and in reply I have now to inform you that according to instructions therein contained I, in company with Lieut. Commander Chas. J. Barclay, United States Navy, repaired on board of said vessel and presented the captain with a written request to haul down the American flag, and to desist in future from raising the same on said vessel, which request has been complied with. I have returned to the captain of the Itata the papers, deposited in my keeping by the purser of said vessel, taking a receipt for the same. I have to inform you that the Itata is now flying the Chili flag.

As requested, I inclose copies of the clearance of said steamer given by the consuls at Valparaiso and Iquique and will endeavor to get a copy of her clearance from the Peruvian authorities when she sails from this port.

I am, &c.,

ROBERT T. CLAYTON,
United States Consul.
[Inclosure 7 in No. 320.]

Certificate given to master on delivery of ship’s register and papers.

(Form No. 14.)

(Paragraph 123.)

I, the undersigned vice-consul of the United States of America for Valparaiso and the dependencies thereof, do hereby certify that Peter Lantrop, master of the steamer called the Itata, of Valparaiso, having this day exhibited to me the clearance of said steamer from the proper authorities of this port, I have delivered to him, the said master, [Page 865] the bill of sale and papers of the said vessel duly deposited in this consulate on the 27th day of February, 1879.

Given under my hand and the seal of this consulate the day and year first above written.

[seal of consulate.]
P. A. McKELLAR,
United States Vice-Consul.

Certificate given to master on delivery of ship’s register and papers.

(Form No. 14.)

I, the undersigned consul of the United States of America for Iquique and the dependencies thereof, do hereby certify that Peter Lantrop, master of the steamer called the Itata of Valparaiso, having this day exhibited to me the clearance of said steamer from the proper authorities of this port, I have delivered to him, the said master, the register and papers of the said steamer, duly deposited in this consulate on the 27th of February, 1879.

Given under my hand and the seal of this consulate the day and year above written.

[seal of consulate.]
J. W. MERRIAM,
United States Consul.