Mr. Gresham to Mr. Young.

No. 2.]

Sir: Referring to the Department’s instruction No. 115, of September 27, 1892, concerning the action of the President of Honduras in chartering the American steamship S. Pizatti with which instruction was transmitted a copy of the opinion of the Secretary of the Treasury to the effect that as the circumstances referred to were not covered by section 4135 of the Revised Statutes of the United States, no disability was incurred by the vessel, her owners, or master, under the laws of the United States, and that she could continue to enjoy the use of her documents granted by the United States, Mr. Pacheco was directed to make suitable notification to the Government of Honduras to that effect.

It now appears from depositions taken in a civil action for damages brought by the crew of the S. Pizatti, against the owners of the vessel in the U. S. courts in Kew Orleans, that the steamship, H. Pizatti, master, enrolled and shipped a crew at New Orleans, ostensibly to proceed to Livingston, Guatemala, to which point she cleared in ballast, to procure a cargo of fruit—a purely commercial voyage—when in fact she had received a cablegram from President Leiva to come to Spanish Honduras to enter the employ of that Government to engage in suppressing the revolution.

Instead of going to the port for which she cleared or the ports to which she usually went for fruit, she proceeded to ports in control of the Government troops and immediately commenced taking part in the war by embarking soldiers, guns, and ammunition, removing the small signal gun and placing a Krupp cannon in its place, placing iron barricades in front of the same, H. Pizatti being on deck in Hondurean uniform, sword in hand, directing the movements of the ship and making suggestions as to the firing of the cannon, etc., notwithstanding the crew protested, claiming that they had not been snipped or enlisted for purposes of war or to take part as belligerents.

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The statement in the Department’s instructions of September 27 last, authorizing Mr. Pacheco to notify the Government of Honduras that there was no violation of the law, was made on the assumption that there had been no preparation in the United States for any participation by the Pizatti or any of her officers in the struggle, but that on the contrary the part taken by the steamer was entirely unpremeditated. The facts disclosed in the judicial proceedings above referred to indicate that there was a violation of the neutrality laws of the United States subjecting the vessel to libel and her master to prosecution. In view thereof you are directed to inform the Government of Honduras that information has recently been brought to the attention of this Government relative to the conduct of the S. Pizatti and her master before leaving the United States, which would very materially modify the statement which this Department made, through Mr. Pacheco, in October last.

I am, etc.,

W. Q. Gresham.