Melchior Verdugo, an inhabitant of the city of Truxillo, was one of the richest men in Peru, being proprietor of the entire province of Caxamarca. On the arrival of the viceroy Blasco Nunnez Vela, Verdugo, who was originally from the same city in Spain, engaged heartily in his service, and continued in his suite at Lima, till the time when the viceroy proposed to dismantle that city and retire to Truxillo. At that period he commanded Verdugo to go before, that he might secure possession of Truxillo, with orders to levy soldiers and provide arms; and Verdugo accordingly embarked all his baggage and effects, intending to have set sail on the very day when the viceroy was imprisoned. As all the vessels at the port of Lima were then detained, Verdugo was unable to proceed; and, as Verdugo was particularly obnoxious to Gonzalo and his partizans, on account of his known attachment to the viceroy, he was one of the twenty-five who were committed to prison by Carvajal on his arrival at Lima, when De Baro and several others were hanged, as formerly related. For a long while afterwards he was in continual danger of being put to death; but at length Gonzalo granted him a pardon, though he still entertained suspicions of his conduct, but had no convenient opportunity of getting rid of him, till the departure of Carvajal against Centeno, when it was proposed by the lieutenant-general to have surprised him while at Truxillo, as formerly mentioned: But having some suspicions of his intention, Verdugo saved himself by flight, and concealed himself among his Indians in the province of Caxamarca.
After Carvajal quitted Truxillo, Verdugo returned to that city; but as he expected Gonzalo might soon become master of that place, and would make him feel the effects of his displeasure, he resolved to abandon the country, yet wished to do it in such a manner as might distress Gonzalo as much as possible. While waiting a favourable opportunity for this, he made every preparation in his power for his intended enterprize, collecting as many men in his service as he possibly could, and employed workmen secretly to construct musquets, iron chains, fetters, and manacles. At this time a vessel arrived from Lima in the harbour of Truxillo, on which Verdugo sent for the master and pilot, under pretence of purchasing some of their commodities; and on their arrival at his house he confined them in a deep dungeon which he had previously prepared. After this, he returned to his chamber, causing his legs to be swathed with bandages, under pretence of certain malignant warts or ulcers to which he was subject, and sat down at one of his windows which looked towards the public square in which the magistrates and principal inhabitants used to assemble every day. When the magistrates came as usual to the square, he requested them to come into his house, as he wished to execute certain deeds in their presence, and the disorder in his legs rendered him unable to go out. Immediately on entering, he caused them to be carried into the dungeon, where they were deprived of their badges of office and put in chains. Leaving them under the guard of six musqueteers, he returned to the window of his chamber, whence he gradually enticed about twenty of the principal citizens into his house, all of whom he put in chains and fetters. He then went out into the city accompanied by a guard of soldiers, and proclaimed the king with much loyal solemnity, making prisoners of all who presumed to oppose him; which were very few, as Gonzalo had carried off most of the inhabitants on his expedition to Quito. Having thus made himself master of the city, and returned to his house, he addressed his prisoners, whom he reviled for having embraced the party of Gonzalo, and declared that he was resolved to withdraw from under the usurpation of the tyrant to join the viceroy, and meant to take along with him all the men and arms he was able to procure. For this purpose, he demanded that all his prisoners should contribute in proportion to their abilities, as it was quite reasonable they should give assistance to the royal cause, having frequently made large contributions to the usurper. He insisted therefore that every one of them should instantly subscribe for such sums as they were able to furnish, all of which were to be paid immediately, as he was otherwise resolved to carry them all along with him as prisoners. Every one of them accordingly agreed to advance such sums of money as they were able to procure, which were all instantly paid.