317.115 B 98/2: Telegram

The Minister in Nicaragua (Eberhardt) to the Secretary of State

16 [161]. Some days ago Sandino, formerly employed by the American, Charles Butters, in his San Albino mines in Nueva Segovia, [Page 440] entered the mine at the head of some 50 armed bandits and, threatening death to Butters if he refused, carried off some 500 pounds dynamite with corresponding fuse and caps with which to “kill Yankees”. He is now reported to have forcibly taken over the mine, driving off all foreigners and to be running mine to its ruin. Butters has appealed to the Legation and General Feland for protection of interests which he states amount to some $700,000, he being reported as largest if not sole owner. The General states that he is preparing an expedition to that region but may find it difficult to detail guard to the mine itself which is remote and difficult of access. Rumors, seemingly well-founded, indicate a considerable number of stragglers and small groups poorly armed proceeding to join Sandino. Considerable criticism is expressed by foreigners here of our policy of having landed marines primarily to protect American and foreign lives and property and then by lack of protection permitting what seems certain early destruction of this property said to represent probably the largest investment in Nicaragua of any one particular individual American.

Eberhardt