The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1860-11-05
Correspondence of the Panama Star and Herald
Err ANI SlIINII MI ErR LGA

SOUTH AMERICA.
Important from Peru--The United States vi
timatum Refused--Americanv Vessel on Fir,
1-CapsizinS of "A Peruvian Frigate and
Frightful Loss of Life.
CALLAo, Oct ll.-As the Lancaster leaves to -da
| avail myself of the opportunity of writing to YOU
The utimatum of the Cabinet at Washington ha:
been at last presented, and Saturday evening
| the Peruvian Government answered it, refusing to
settle the following claims The Lizzie Thompson
Georgiana and Sartoria claims.
This last claim is one which sensible person
ever thought that the United States Government
would even listen to, much less try and urge its
payment; there can be but one term applied to it,
| and that is "infamous." The Peruvian Govern
ment have in its possession proofs against this
claim of most damning character, with some curl
Gus facts as to how such claims made; but they
are urged, and then-the division of spoils j
Throughout the whole affair the United States
Government have endeavored to wrap up the
whole OF these demands in an impenetrable shroud
OF mystery, letting out just sufficient, and of the
klhd, 10 Keep up public excitement. But before
any dihculties of hostile nature can take place
the Peruvian Government will have published for
the benefit of the civilized world an erpose of the
three aforementioned claims, which will certainly
place the present administration in anything but a
favorable light The proposition made by the Pc
ruvlan Government to leave it to the arbitration
was Indignantly rejected; that also of mixed COM
mission met with similar fate
The refusal to settle upon the terms demanded
by the United States necessarily compels Mr. CLAW
to demand his passport, haul down his flag, and GO
home.
On Friday morning last the American ship Lucy
NJ Hale was discovered to be on fire. The boats
from the American vessels of war were Immediately
sent to her assistance and it was by their praise
worthy exertions that the vessel and cargo were
saved. To Capt. Rudd, of the Lancaster, for his
promptness on the occasion, too much praise cannot
be awarded.
TERRIBLE MARINE DIsAsTER.-oNE HUNDRED AND
LIVES LOST.
iesteTday a most frightful accident occurred
IN the Dry Dock at San Lorenzo, involving the
entire loss OF the Peruvian frigate Caao (Apu-
rlmac, and almost the entire destruction of the
dock, and a fearful loss of life The particulars
oil TINS lamentable affair are far as can gather
as follows: 1t having been deemed advisable to
dock the ship, in order to examine her copper
ana o'her triding things, the engineer of the
oock was asked whether she could be taken
with her battery, provisions and crew on board
his OPINION was that the dock could not raise her
win tnat weight, consequently her guns were land
eu' yaros sent down, and top gallant masts struck,
retaining h er provisions, magazine and crew on
bnard, and In this state she entered the dock at
l012 A. NJ. There was very large concourse of
persons went over to witness the operation. The
Government steamer Ucayali conveyed the Presi-
dent, Minister of War, and large number of in
vited guests
Upon the arrival of the President the vessel be-
gan to enter the dock, and was soon placed in her
proper position, the pumps set to work, every
thing up to the present moment went we'll The
Keel OF the rgate took the chocks of the platform
and she began to ascend out of the water. Owing
10 her great depth of keel the chocks did not act
any support whatever her bge, therefore the
ship was simply balanced upon her keel and so
long as she could be kept steady in that position
she was sale, but her were on board constant
iy moving from one side to the other, the ship be-
ing already top-heavy; this caused her to give one
or two slight rolls and then she pitched over on the
starboard beam; at the second surge the three
masts snapped about halfway up from the deck,
her starboard ports being open, she rapidly filled
with water, and here began a scene of horror i'm
possible to describe. The water was filled with
men and women, wounded, dying, all screamed for
help; boats were promptly sent to their assistance,
or the loss OF life would have been still more fearful.
vi the number that were below at the time
very few escaped and their cries for help ter
rlble, but that which was most heart-rendng was
the poor sick in the hospital who helpless with dis
ease could do noug ght but for that help that
none could render them Up to the present time
of writing it is not known how many have been
lost, but it cannot fall short of one hundred and
fifty.
The wounded that could be removed who did
not require amputation were brought over to Cal
lao, the rest remaining on the Island. The number
of broken heads, arms and legs is great. Captain
Kerr, of the English ship Galconda, lowered his
boats and did good service in saving thirty or
forty lives.
The Callao was fine Al gun frigate. She is
about six years old-the vessel is total loss, being
entirely under water; the dock may also be con-
sidered as done for, it having failed as CONNER
clal speculation, and the present disaster may be
considered as the last of the Callao Dry Dock.
GUANo CONTRACTS.
As | wrote you in my last letter, the mercantile
houses who had been awarded the guano contracts
with the Government notifications would not ac-
cept them. The contracts have been altered, and
there is a probability that the Government will
have to accede to the propositions as they were
originally made and in that case the house of Gibbs
~ wi or N tha