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THE SAN FRANCISCO CALL, SATURDAY, JULY 2, 18Y8. . HOW THE BIG FIGHT COMMENCED General Shafter’s Report on Beginning of the Action). The Commander-in-Chief Tells of His Move on Northeast Portion of Santiago. WASHINGTON, July 1.— Secretary Alger received the fol- lowing dispatch from General Shafter, dated at 9:45 a. m. to- day: DO00000CCO00000000C000 © CAMP AT SEVILLA, Cuba, July I.— Action now going on, but fir- ing light and desulto- ry. The fight was be- gun on the right, near Caney, by Lawton’s division. He will move on the northeast por- tion of the town of San- tiago. Will keep you continually: advised of progress. SHAFTER. Major - General Com- manding. 0000002000000000 ecretary Alger directed Adju- tant General Corbin to notify the President-at once of the text of General Shafter’s message, and it was done immediately. The Pres- ident will ' be kept continuously Q0000000000000 0000000 0000000000 0000000000 (] > advised of all news. \s the Secretary started to the Cabinet meeting he spoke with satisfaction of the fact that sufficient time had elapsed to per- mit General Shafter to get his well army concentrated at the front and-thrown out into good battle formation. The Secretary felt that our forces were on the| d that the mere the action was now go- howed that Shaiter-had is-time and was ready to strike his blow. Word had conie prior to the Shafter dispatch showing that the artillery, which had been brought to the front, was well placed. General Miles, commanding the army, received a copy of the dispatch soon after it arrived. He had anticipated it, for only:a few hours before a dispatch came to him from General Breckinridge; inspector general of the army, stating that the spirit" of ::the troops was high and that -they were eager and expectant of -ac- tion. General Miles also received an- other dispatch sent quite early this morning from Shafter’s head- quarters, saying that the big mil- itary balloon was now high in the air and was_ giving opportunity for observation over a great sweep of country. This in itself was of incalculable value to our troops. Brave reconnoissances had been made, but these were of little value compared to what could be seen from the balloon a mile or more in the air, com- manding a radius of observation of from twenty to forty ‘miles with powerful telescopes. This was the first actual use of the balloon. by the - American army in the present ‘war, and General Shafter set much store on the information they would give as to the exact location of all - the Spanish forces, their points of concentration, the defi- nite location of Cervera’s war- ships in the harbor and possibly the progress of the Spanish re- enforcements. After 'the first announcement of Shafter was bulletined, the time dragged wearily with noth- ing from the field to answer the intense anxiety .to which every one was wrought. According to General Shafter’s report the attack on Santiago | was begun by the Second Divi- sion of the Fifth Army Corps. This division consists “of three crigades, made up as follows: First Brigade, commanded by Colonel J. J. Van Horn, Eighth United States Infantry; Twenty- second United States Infantry and the Second Massachusetts Infantry. Second Brigade, commanding officer unknown, but supposed to be Colonel Bates, First United States Infantry; Fourth United States Infantry and Twenty-fifth United States Infantry. Third Brigade, commanded by Brigadier General A. R. Chaffee, Seventh United States Infantry; Twelfth United States: Infantry and Seventeenth United States Infantry. Thus it appears that the divi- sion which-opened the hostilities of the day is composed: entirely of regular troops, seasoned and experienced in battle, . with the | exception of the Second' Massa- |chusetts - Volunteer .~ Infantry, | which is regarded as one of the hwest volunteer-organizations. of | the army. [ General - Lawton, ‘who '.was chosen for the important and re- i sponsible duty - of ‘opening. the | battle by the capture of Caney {and the interception “of Spanish | re-enforcements’: now. nearing ;Sam 0, s described as-a good | fighter and a soldier of - excep- | [ tional ability.He served in- the | | Union army, having entered as | sergeant of :Company E; Ninth | Indiana - Volunteer:: Infantry, in | April;- 1861, and heing succes- sively: promoted. through merit on the field of battle to first lieu-| tenant of “the. Thirtieth Indiana | nfantry in August; 1861; to cap- tain ‘in May, 1862,:and to lien- tenant colonel in 1864..In March, 1865, he was brevetted - colonel or ‘gallant and meritorious ser- vices during the war. He entered the regular establishment in July, 1866, as second lieutenant of the Forty-first Infantry; colored, and remained with that branch of the army until January, 18771, when he was transferred to.the Fourth Cavalry, with which-he remained until ‘September, ‘1888, when he was appointed inspector general, with the rank of major. He was subsequently promoted to the; rank of lientenant colonel and held that rank until the opening of the war with Spain, when the President - appointed him briga- dier general of volunteers and as- signed him to the command of a division of the Fifth Army Corps, commanded by General Shafter. The Cabinet was in session for almost two hours to-day, but| took no important action. The session. was mainly occupied with a discussion of the news from Santiago. General Shafter’s dis- patch was read aloud before the members of the Cabinet. The As- sociated Press dispatches were also read verbatim to the Cabi- net. There was a general feeling of gratification shown at the co- operation rendered by Admiral Sampson’s fleet. Careful plans to | this end were made in a general way some time ago, though leav- ing to Sampson the widest dis- cretion. The Cabinet also devoted some | time to questions connected with the operation of the war revenue bill. : After the Cabinet meeting : \ 1 \ i | | and Admiral | SAmpsons FLEET 5 ) ° ENGLIS CALE. SZ E3 - . : H MILES 2 CUBAN LERGUES SPANISH EARTHWORKS WFORTS U @ BLOCKHOUSE fie waX S BATTERY. TOWNS (LRoAD R4 S @VILLASES Map Showing the Situation About Santiago and the Positionof the Several Divisions ot the American Army on Friday Morning When the Fighting Began. Secretary - Liong - said. that the | fleet under Sampson was co-ope- rating to the fullest extent with | the land. forces; and that he ex-| pected great results. He suggest- ed that-there were two. conditions certain in the Santiago situation. “One’is,” he said, “we will win, and the other that it will 'come | about - after hard: fightiug, - but fighting will tell. - Of this we are certain.” RED CROSS FLAGS EXHIBITED BY THE TRICKY SPANIARDS Copyrighted, 189, by the Assoctated Press. GENERAL KENT'S HEADQUAR- TERS, near -Aguadores, June 30, by As- sociated Press dispatch’ boat Wanda, via Kingston, July ‘1.—The Spaniards in thé front of General Kent's:line have adopted a new method :0f preventing him from firing on their works. They have strung out at frequent -infervais | Red Cross flags, the line being directly in ‘view of their éntrenchments. -~ The object of this, it is thought at General | Kent's headquarters; is to prevent the. Americans from firing in that direction, | or If the Red Cross is ignored, to spread the idea that the American corn- manders are viclating the rules of civ- ilized warfare in firing upon the hos- pitals. —_— CERVERA DISOBEYED BLANCO’S ORDER TO LEAVE SANTIAGO LONDON, July 1.—The Pall Mall Ga- zette's correspondent at Madrid tele- graphs from that city that coldness ex- ists between Captain General Blanco Cervera, adding - that Blanco ordered Cervera to leave San- tiago de Cuba, and that the admiral replied that he would be glad to leave, but that his guns were dismounted, -he was without coal and. the American admiral was waiting outside for him. Sy . TRANSPORTS WILL SAIL BACK AT ONGE FOR REINFORCEMENTS WASHINGTON, July 1.—In reply-to a message asking General Shafter how many troopships ¢ould be sent baek to | Tampa in order that re-enforcements | might be sent him, Adjutant General | Corbin late to-night’ received . the fol- lowing: 5 “‘Colonel Humphreys has . -been or- dered to return as many lransports as possible-at once.” 2 5 Deaths From the Heat. CHICAGO, July -1—There .were - two deaths, those of Louis GIll and:Christian Kahler, ard sixteen prostrations: -from the heat in the past twenty-four hours. Threcfr the prostrated are in a serious- conditfon. ST —— e Hospital Field . Practice and Astor’s Mountain Battez;y in haif tone with to-day’'s News Lettes. DISSENSIONS 0 IN THE CAMP OF THE INSURGENTS ‘Aguinaldo Causes the Arrest of Armacho and Five Na- tives. Dewey Will Make No Further Demonstrations Until After the Arrival of the Trans- rts. Special cable to The Call and ths New York Herald: ‘Copyrighted, 1895, by James Gor- don Bennett. MANILA BAY, July 2 (via Hong- kong and Paris, July1).—Serious dissen- sion has already broken out among the reébel leaders.’ General Aguinaldo sent General Mascado yesterday to arrest Isabella Armacho and five other na- tives whom he suspected of conspiracy against his authority. They have been thrown into prison and their friends fear they will be taken to Old Cavite and shot to-day. Armacho, who was Home Secretary. in Aguinaldo’s Cabinet in 1896, remained as a hostage when General de Rivera pacified the island last winter. Aguin- aldo went to Hongkong and received the first installment of peace money, $400,000. He cabled to Armacho, who then ordered the natives to lay down their arms. - There was trouble over the second instaliment of $200,000, and a lawsuit was begun at Hongkong for the possession of this money last April, Armacho claiming he had not recelved his share. Finally Aguinaido gave Ar- macho $100,000- and the latter recently bought -3000 rifles, which were to have been shipped from Hongkong to Cavite in the steamer Pasig. This -vessel was seized hy the British authorities about two:weeks ago for violating -the neu- trality laws. Aguinaldo’s: partisans suspect Arma- ‘ho caused the seizure. To allay these suspicions Armacho came té Cavite | from Hongkong in the Zafiro the day before yesterday and was arrested at daybreak yesterday. One of Armacho’s friends, Sandico, .escaped capture and claimed a. safe asylum from United ‘States Consul Willlams, who took him aboard the transport Naushan. Heé will go 'to-Hongkong, .where he will be set ashore."Mr. Williams is said to be using his jnfluenceé.to prevent fhe execution: of Armacho. .Sandico latér returned to Aguinaldo’s headquarters and all the leading -insuigents are trying to.patch up. the trouble between Aguinaldo and Armacho. Whether the latter will be tried for failure to bring over the Pa- sig’'s load of arms. will depend on further advices from Hongkong. Tt is reported that the rebels captured Buluecan, north of Manila, with the Governor of that province and a large number of troops. Fighting around Manila is limited to holding Spaniards in check. & A Spanish force at Malate attacked the besieging rebels fiercely Sunday night and were repulsed with slight loss to the insurgents. The German war- ships have gone away. The only Ger- man warships now in Manila Bay are the Princess Wilhelm and Kormoran. The last Japanese cruiser sails for Hongkong to-day, taking the mail. Two more British cruisers have arrived, also the French flagship Bayard. The re- maining warships are two French and four British. The Pasig has left Hong- kong for Swatow. It Is believed that FOR THE TRANSPORTS Germany’s. Marines Wiil Be Re- quested - to - Leave When Manila Is Captured. NEW YORK, July 1.—The Washing- ton correspondent of the Herald tele- graphs: Rear Admiral Dewey cabled to the Nawy Department to-day that the situation in Manfla is still un- changed. The dispatch was dated | June 27. At the time it was sent the| transports, with 2500 troops on \)o&rd} had not yet arrived. -Neither had the | cruiser ‘Charleston been sighted. | Much to the gratification of the au- thorities Rear Admiral Dewey reported | she takes o for Manila. The health :—?XEBTISEHNT& S S e e SIXTY-FIRST HALF YEARLY REPORT DEWEY WAITING 1% o The German Savings and Loan Society, 526 .CALIFORNiA STREET, San Francisco, California. SWORN STATI—Z)IE,\'Th & 'he condition and value of the assets gxsd‘ligb!llties of The German Savings and Loan Society, a corporation doing business at No. 52 California_street, in the City and -County -of San Francisco, State of California, and where said assets are situ- ated, on June 30th, 1898. ASSETS. 1—$5,650,000 United States 4% registered that the insurgents had taken no offen- sive action against Manila. This is es- | pecially pleasing, as it shows that Gen- | eral Aguinaldo is still complying with | the wishes of Admiral Dewey and will make no offensive move against Manila | until the transports and the Charles- ton arrive. l The troops will be landed at Cavite, and when they have recuperated from their long voyage they will be moved forward to the- insurgent lines. The American warships will take up their position in front of the city and its surrender will be demanded. Failure to comply yith the demand will result’ in operations which it is. believed will | result' in the capture of the city with- out much loss. It is not proposed to fire indiscrim- inately on the town.. The points to be shelled are those occupied by the Span- ish troops. The authorities do not ex- pect that foreign marines are to be landed, but if they should be they will be invited to leave as soon as the city is in the possession of the Americans. Rear Admiral Dewey will inform the | German commander-in-chief and the| senior officers of other naval forces that the 2500 Americans at his disposal | are sufficient to preserve order in the | city, and that retention of marines on | shore is unnecessary. It is said in ad- ministration circles that such a state- ment will undoubtedly result .in the withdrawal of marines. On assurance from Rear Admiral Dawey that the Americans can preserve order the other | warships will undoubtedly withdraw their forces. In the face of such an ex- ample Vice Admiral Diedrichs \\'XIH‘ have no excuse for ordering the Ger- | man forces to remain in the city. [ — ‘ DEWEY HAS MADE NO | - OFFICIAL PLEDGES | | Carefully Avoided Committing the ‘ Government to Any Line i of Action. i WASHINGTON, July 1.—While not prolix in his utterances, Admiral Dewey loses no opportunity to keep the Navy Department informed of the state of | affairs at Manila. A dispatch came | from him to-day, dated Cavite, June 27. | He had many other matters of interest | to communicate, but they were not of | a character that could be properly made public at this stage. For one | thing it can be stated that Admiral| Dewey has been particular to avoid | committing his Gevernment to any | particular line of action respecting the | future of the Philippines or to do any- thing that would embarrass General Merritt in framing a policy to meet the | needs of the case when he arrives. He | has made no: official pledges to the in- | surgent leader, although he has not| hesitated ‘to ‘openly raise his good | politics and his accomplishments. | el e GERMANY RECOGNIZES | OUR AUTHORITY | Admiral Diedrichs Rejects the Propo- sition .of a Neutral Governor. f BERLIN, July 1.—The following dis- patch has been received from Heng- kong: According to trustworthy intel- | ligence from Manila the Spanish Gov- ernor. General had, a few days ago, at his own request, a meeting with Ad- miral . Diedrichs, commander of the German naval forces in the Far East, in order: ‘to propose, on behalf of the Spanish ‘Government, that Manila | should be handed into the provisional | charge of a neutral commander. = The.| proposal was rejected by Admiral Died- | rldchs, in view of the American block- ade. The Manila news, via Hongkong, re- ferring to the action of Admiral Died- richs, may be looked upon as being a semi-official note, as it was issued by the semi-official news agency here. TO .CONVEY LATEST NEWS TO DEWEY | | | Consul Wildman Charters a Steamer, | but Rough Weather Prevents Its Departure. Special cable to The Call and the New York Herald. ~Copyrighted, 1888, by James' Gor: don Bennett. HONGXONG, July 1.—Consul' Wild~ man chartered a small vessel to carry | dispatches to Admiral Dewey informing | him that the Spanish fleet was. at Port Said, but for three days a gale has pre- vented her dispatch. The rough weathér may explain . the -non-arrival of the | troopships. —e As to the Third Call. WASHINGTON, July L—It ecan be stated positively that. the' President does not contemplate issulng a' third call for volunteers within the next two weeks, at | least, as present plans in all probability will preclude its issuance within a fort. night, if then. ROy 53 Ordered to Philippines. WASHINGTON, July 1—Batteries C and M of the Sixth United States Ardl-| lery,-now on duty at Fort. Myer. Va., have been assigned for duty to°the. Philippines, | They will start on. their transéontinental journey next Tuesday. - ¢ 5 You cannot colored tea. ADVERTISEMENTS. 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All said notes, bonds and -cer- tificates are held and. kept by said corporation in -its own vaults. 4—Bank- building and Ilot, the value -of which 1s.:: 5—Other réal estate situated. in the States of California, Ore- gon, - Washington -and Utah, the value-of which d8..:...:. ¢—Furniture in the bank. office of said corporation 7—Cash_in_Uhited States ‘gold and silver:coin, kept by said corporation in its own vaults, the actual value of which is.. 155,000 00 1,380,922 31 1,000 00 1,423,791.78 2,506 60 ’ LIABILITIES. 1—To Depositors: Said corpora- tion. owes deposits mlnoum; ing to, and . the value o wgich L .$26,486,987° 08 2—To stock’ nt of capital ‘stock, up, in gold coin, the v: which .. 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