Mr. Thompson to Mr. Gresham.

No. 43.]

Sir: Following my last dates I have the honor to report: The 20th and 21st ultimo were uneventful days. The city was calm and business showed signs of revival. The banks were all open and the streets resumed their usual appearance. On the 21st definite news was received of the appearance of the Republica at Santos and a detachment of soldiers was dispatched to Saõ Paolo to reinforce that point. The 22d was full of excitement. The insurgents captured four merchant steamers belonging to national companies, together with a quantity of provisions. At 3 p.m. heavy fire opened between Santa Cruz and the Aquidaban, Trajano, and Guanabara, and one of the torpedo boats which lasted until 6. Owing to the remarkably bad gunnery neither side suffered much from the firing. One shot entered the city and killed two [Page 54] persons. On the 23d a bombardment between Santa Crnz and the fleet lasted from 6 to 9 a.m., during which the Guanabara was struck by a shell. There was more or less firing all day on the 24th between Santa Cruz and the fleet. On the 25th about 500 Government troops concentrated at the custom-house for embarking and crossing the channel to the Island of Ilha dos Cobras occupied by the marine hospital and guarded by cadets of the naval school, thus far neutral. Admiral Saldana da Gama had raised the “red cross” flag over the hospital. As the island with good artillery would endanger the position of the fleet it was decided by the Government to occupy it. The insurgents, however, discovered the movement and the Aquidaban threatened the first barge load of soldiers that disembarked.

At 4 p.m. firing began, and for half an hour there was a rain of shot and shell over the business part of the city. The batteries on Sao Bento and Castle hills were also bombarded, and the shot fell in various parts of the city, as far away as Rua Princeza Imperial. The troops at the custom-house soon retreated and the engagement came to an end. On the 26th the attempt was renewed, and Henry T. Watmough, a London and Brazilian bank clerk, while eating his lunch was struck by a piece of shell and killed. The whistle of the shot was heard on the Rua do Ouvidor, and several shells burst directly over the city. The people fled in every direction. Many buildings were struck and damaged, though the actual loss of life was not very great. The Government having relinquished the idea of capturing Ilha das Cobras, there was a lull in hostilities on the 27th. Business, however, was wholly suspended in the city. The situation was made more critical by an order from the marechal to the shore batteries to fire on every vessel coming within range. There was a meeting of bankers and merchants, who talked of closing their doors until the crisis was over. On the 28th a sharp engagement occurred at the Ponta do Caja, S. Christovao, which was visited by steamers and launches of the squadron for the purpose of obtaining coal. The insurgents captured six lighters of coal belonging to the Brazilian Coal Company, the representatives of Corey Bros. & Co., of Cardiff. No demand seems to have been made, as was expected, by the British authorities for the return of the coal. On the 29th an incident occurred on the bay which is reported as follows: A boat being seen at the customary anchorage of the Aquidaban flying the British flag, a launch was sent from the British cruiser to investigate with the result of finding that it contained a torpedo, and was preparing to blow up the revolting ironclad. Two well-known Brazilian officers were of the party, an American named Boynton, an Englishman, and others. They were taken aboard the British cruiser charged with illegally flying the British flag, and subsequently Boynton was turned over to the commander of the Charleston, and is still in his custody. It is also reported that Boynton openly talked of his intention to blow up the Aquidaban, and of the large sum he was to receive for the service.

The 29th passed quietly. Business houses remained closed under the influence of more rumors of the bombardment of the city. A note was posted at the German consulate advising Germans to retire from the city. On the 30th notices were sent out from British and French legations that the bombardment of Santa Cruz would begin about midday and advising that people of those nationalities should at once retire from the city. A notice advising American citizens of the alarming condition was also posted at the American consulate. The exodus from the city was prompt and general. Firing was commenced on Santa [Page 55] Cruz at 2 p.m. It is estimated that 196 shots were fired by the fleet and about double the number from the forts in the two hours during which the engagement lasted. As usual no serious damage was done by either side. Government authorities posted during the evening a bulletin declaring that the Government “is provided with all necessary means for maintaining order, and that it will immediately order shot every one who attempts to commit a crime against private property.” On the 1st of September it was definitely known that foreign representatives were trying to arrange an accord by which the city should be protected from bombardment. There was but little movement on the bay during the day and quiet prevailed generally.

The 4th passed quietly and without any incident of importance both in the city and on the bay, with one exception. The news that an accord had been arranged through the mediation of the foreign powers possessing a naval force in the harbor, and to the effect that the city would not be bombarded nor provocation given therefor, had caused a return of confidence and a very general feeling of security. The banks and business houses were again open, coffee shipments were made, activity prevailed in the custom-house, and the streets were again full of people. No matter what steps were taken to overcome the revolt it was universally believed that the city would be protected from harm. On the morning of the 5th, soon after 7 o’clock, a part of the insurgent fleet drew up in front of the Saude Trapiches and sent two launches to the D. Pedro II docks after the coasting steamer Barãdo de S. Diogo which was discharging there. Fire was promptly opened on the launches not only with small arms but with cannon by the new battery and the S. Bento battery. The larger vessels supporting the raid then opened fire on the batteries about 8 o’clock, and for a few minutes a perfect storm of shot and shell swept over the Saude and the city beyond. It was the hottest engagement which has thus far been experienced. The fire directed at the two batteries on the hill led to some slight damage in the city. The 6th passed without any incident of importance other than the renewal of the accord for the protection of the city from bombardment, the vice-president giving orders for the removal of the artillery from the batteries which have done so much to provoke the firing on the city. The surprise of the 9th was the white flag of the revolutionists flying over Fort Villegaignon. It was known of course that the sympathies of the garrison were with their comrades and that if forced to take sides they would most probably join the fleet. The fort includes the marine barracks containing about 700 men. On the 10th a general bombardment took place between the fleet and Villegaignon against the three loyal forts in the bay, lasting from 4 to 7 p.m. A very grand display with no effective results.

I have, etc.,

Thos. L. Thompson.