After Don Diego had made himself master of the city of Lima, he deprived the magistrates of all their insignia of command, but which he immediately returned to them, with orders to execute their official duties in his name and authority. He then ordered the Doctor Velasquez, who had been chief justice or adelantado under the marquis, and Antonio Picado who had been his secretary, to be taken into custody. In the next place he appointed Juan Tello, Francisco de Chaves, and one Sotelo to be captains of his troops. On the news of this revolution, all the idle vagabonds and debauched blackguards of the country hastened to enrol themselves under the banners of Don Diego, in hopes of participating in the plunder of the partizans of Pizarro, and of being enabled to live licentiously without labour. To enable him to pay his troops, Don Diego seized the fifth of the precious metals belonging to the crown, and took possession of the properties of those who had been massacred, and the revenues of all the absentees. In a very short time disputes and divisions arose among those who had taken part with Don Diego, as the leaders of the malcontent party among them were anxious to assassinate Juan de Herrada, because every thing was done and directed by him, Don Diego having only the name of captain general, while he in fact exercised the whole authority. The intention of these malcontents being discovered, several of them were put to death as seditious people; among whom was Francisco de Chaves, who was put to the rack and afterwards hanged as a ringleader of this new conspiracy. One Antonio de Orihuela likewise, who had only arrived of late from Spain, was beheaded, having imprudently asserted that the Almagrians were tyrants and usurpers.
Deputies or messengers were sent to all the cities and provinces of Peru, to induce the commandants and magistrates to recognize Don Diego as governor, which was done in many places out of fear: But Alonso de Alvarado, who was lieutenant governor in the province of Chachapoyas, ordered the deputies who were sent into his government to be arrested, declaring for his majesty in opposition to Don Diego, whom he denounced a rebel. He was encouraged in this bold procedure, because he was confident of being able to defend himself with a hundred men whom he commanded in a strong fortress of his province, which he fortified with much care. Don Diego used every effort to gain Alvarado to his party, by flattering promises and menaces of condign punishment; but he uniformly replied, that he would never acknowledge his authority without an express command from his majesty to that effect, and that he hoped, by the blessing of God and the assistance of the brave men whom he commanded, to revenge the death of the marquis, and to punish the Almagrians for their injurious and outrageous conduct, and the contempt of the royal authority which they had evinced in their whole procedure. Garcias de Alvarado was therefore sent with a force of cavalry and infantry,