Despite the goodwill brought on by the removal of the "strongman" President Carlos Ibáñez del Campo in July 1931, Chile could not overcome the Great Depression's severe economic effects, and wages for civil servants making over 3,000 pesos a year were cut by 12–30 percent to reduce government expenditures.
This triggered a severe reaction among the sailors of the navy, who had already suffered a 10 percent salary cut and 50 percent loss in overseas bonuses.
Various members of the crew on board Almirante Latorre, but no officers, met on 31 August and decided that a mutiny was the best course of action.

Shortly after midnight on 1 September, the junior crew members of Almirante Latorre, an armored cruiser (O'Higgins), seven destroyers, and a few submarines took over their ships while many of their shipmates were watching a boxing tournament in La Serena.
They imprisoned the officers, most without conflict, and secured the ships by about 02:00.
They elected a committee, the Estado Mayor de Tripulacion, to take control of the mutiny.
Later that day, at 16:55, the mutineers radioed the minister of the navy, declaring that they were acting on their own accord, as opposed to acting in concert with a militant political party or communist insurgents.
They asked for their full salaries to be restored and the punishment of those who had plunged Chile into a depression, while also stating that they would not use force to achieve these goals.

Just before midnight on 2 September, the mutineers messaged the Chilean government with a more "sophisticated" list of twelve demands.
Meanwhile, further south, junior members of the navy in the main naval base of Talcahuano joined the mutiny, taking several vessels in the process.
Several of these sailed north to join the other rebels, while two cruisers, a few destroyers and submarines remained to guard the base.
Other bases joined the now-full-fledged rebellion as well, including the Second Air Group based in Quintero.
With so many rebels appearing, it was feared by many that the plethora of unemployed workers would join.
The government attempted to solicit aid from the United States in the form of military intervention or war materiel (including two submarines and bombs capable of penetrating the armor of Almirante Latorre), but they were rebuffed both publicly and privately.
Acting Vice President Manuel Trucco now found himself in an undesirable position; he had to defeat the rebels before more units joined and bolstered their forces, but if he was too harsh, there was a risk that the populace would think that his policies were too similar to the former dictator Ibáñez del Campo.
Trucco decided on a path of reconciliation.
He sent a naval admiral, Edgardo von Schroeders, to negotiate with the mutineers.
They met on board Almirante Latorre, where von Schroeders, seeing a potential split between sailors angry over their pay versus others with a more political agenda, tried to divide them along these lines and get them to surrender.
However, a plea from the approaching southern fleet, asking for them to wait before any possible settlement, sealed the matter for the time being and von Schroders flew back to the capital.

September marked a turn in the rebels' fortunes, despite the arrival of the southern fleet on 4 September.
All of their land gains were taken by government forces, leaving only the fleet in the mutineers' hands.
By the next day, an air strike was mounted by government forces.
The only damage done was to the submarine H4, which was unable to dive, but at least one bomb landed about 50 yards (46 m) from Almirante Latorre.
Despite the scant damage, the attack broke the mutineers' spirits; they quickly offered to send a delegation to Santiago to discuss terms, but the government, bolstered by its land victories, refused.
While the mutiny devolved into arguing and anarchy, individual ships began leaving the bay and setting sail for Valparaíso, and the rest soon followed.
Almirante Latorre ended up in the Bay of Tongoy with Blanco Encalada.
Seven crewmen on the dreadnought received de
Despite the goodwill brought on by the removal of the "strongman" President Carlos Ibáñez del Campo in July 1931, Chile could not overcome the Great Depression's severe economic effects, and wages for civil servants making over 3,000 pesos a year were cut by 12–30 percent to reduce government expenditures. This triggered a severe reaction among the sailors of the navy, who had already suffered a 10 percent salary cut and 50 percent loss in overseas bonuses. Various members of the crew on board Almirante Latorre, but no officers, met on 31 August and decided that a mutiny was the best course of action.
Shortly after midnight on 1 September, the junior crew members of Almirante Latorre, an armored cruiser (O'Higgins), seven destroyers, and a few submarines took over their ships while many of their shipmates were watching a boxing tournament in La Serena. They imprisoned the officers, most without conflict, and secured the ships by about 02:00. They elected a committee, the Estado Mayor de Tripulacion, to take control of the mutiny. Later that day, at 16:55, the mutineers radioed the minister of the navy, declaring that they were acting on their own accord, as opposed to acting in concert with a militant political party or communist insurgents. They asked for their full salaries to be restored and the punishment of those who had plunged Chile into a depression, while also stating that they would not use force to achieve these goals.
Just before midnight on 2 September, the mutineers messaged the Chilean government with a more "sophisticated" list of twelve demands. Meanwhile, further south, junior members of the navy in the main naval base of Talcahuano joined the mutiny, taking several vessels in the process. Several of these sailed north to join the other rebels, while two cruisers, a few destroyers and submarines remained to guard the base. Other bases joined the now-full-fledged rebellion as well, including the Second Air Group based in Quintero. With so many rebels appearing, it was feared by many that the plethora of unemployed workers would join. The government attempted to solicit aid from the United States in the form of military intervention or war materiel (including two submarines and bombs capable of penetrating the armor of Almirante Latorre), but they were rebuffed both publicly and privately. Acting Vice President Manuel Trucco now found himself in an undesirable position; he had to defeat the rebels before more units joined and bolstered their forces, but if he was too harsh, there was a risk that the populace would think that his policies were too similar to the former dictator Ibáñez del Campo. Trucco decided on a path of reconciliation. He sent a naval admiral, Edgardo von Schroeders, to negotiate with the mutineers. They met on board Almirante Latorre, where von Schroeders, seeing a potential split between sailors angry over their pay versus others with a more political agenda, tried to divide them along these lines and get them to surrender. However, a plea from the approaching southern fleet, asking for them to wait before any possible settlement, sealed the matter for the time being and von Schroders flew back to the capital.
September marked a turn in the rebels' fortunes, despite the arrival of the southern fleet on 4 September. All of their land gains were taken by government forces, leaving only the fleet in the mutineers' hands. By the next day, an air strike was mounted by government forces. The only damage done was to the submarine H4, which was unable to dive, but at least one bomb landed about 50 yards (46 m) from Almirante Latorre. Despite the scant damage, the attack broke the mutineers' spirits; they quickly offered to send a delegation to Santiago to discuss terms, but the government, bolstered by its land victories, refused. While the mutiny devolved into arguing and anarchy, individual ships began leaving the bay and setting sail for Valparaíso, and the rest soon followed. Almirante Latorre ended up in the Bay of Tongoy with Blanco Encalada. Seven crewmen on the dreadnought received de
Chilean battleship Almirante Latorre