Mr. Conger to Mr. Gresham.

No. 468.]

Sir: In addition to my dispatch (No. 419) of April 3 last I have the honor to report that the struggle in Rio Grande do Sul has since that date been progressing with no material change in the general situation. [Page 40] Several battles have been fought with varying success on each side, no important advantage, however, having been gained by either.

But on the 6th instant Admiral Wandenkolk, one of the foremost officers of the Brazilian navy, now retired and a member of the national senate from the federal district, who for the past three months has been vibrating between Buenos Ayres, Monteviedo, and the Rio Grande frontier, undoubtedly advising and counseling the revolutionists or federalists, as they call themselves, took possession, either by previous purchase or seizure (it has not yet developed which), at Montevideo, of a Brazilian merchant vessel, the Jupiter, embarked thereon several hundred pretended emigrants, with a full equipment of firearms, including small artillery and ammunition, and proceeded at once to Rio Grande do Sul, in front of which city he arrived on the 9th.

There he took possession of a couple of small Brazilian war vessels and several merchant ships, issued a proclamation to his comrades in the navy, inviting them to join, and in the name of “liberty” urging them to support him, and prepared to attack the city.

The authorities there, however, immediately trained the land batteries on the fleet with such effect that it was compelled, after three days of maneuvering, to withdraw, the Jupiter sailing north towards Desterro, and the other vessels either returning to their former positions in the harbor of Rio Grande or scattering elsewhere.

There is no doubt that a simultaneous attack by the revolutionary land forces, under Gen. Gumerscindo Saraiva, had been agreed upon, but a failure on their part to reach the coast and cooperate in the attack rendered Wandenkolk’s efforts fruitless. In the meantime the National Government had dispatched the cruiser Republica and the steamer Santos from Rio de Janeiro, with instructions to capture or sink the Jupiter. The Republica came up with her on the 15th near Canavieiras, on the coast of Santa Catherina, where she immediately surrendered, and with Admiral Wandenkolk and such of his followers as had not already escaped, on board, was brought to Rio de Janeiro, arriving on the 20th.

Wandenkolk was at once confined in Fort Santa Cruz and a naval commission appointed to make a preliminary inquiry, which is expected to hold its first session to-day.

A resolution has also passed the Senate calling upon the Executive for the reasons, etc., of the arrest of one of its members.

There exists here a very general sentiment of unrest and uneasiness, coupled with a feeling of bitter opposition to Vice-President Peixoto for continuing what is deemed an unjust war and a useless waste of public money. Yet this is now somewhat alleviated by the hope that since this successful capture he will be willing to enter into negotiations for some sort of compromise, he having heretofore said that he was only delaying such negotiations until some substantial victory on the part of the National Government had been achieved. It is expected that an annoying question will arise with the Government of Uruguay in reference to the arming and equiping the Jupiter at Montevideo; but it is believed that it can be diplomatically and amicably settled.

I have, etc.,

E. H. Conger.