10th February.
The excitement in Shanghai yesterday morning was undoubted. Business was a standstill, while everyone was asking "What's the nows?" Stories passed from mouth to mouth and gathered details as they wont. Towards noon there was the usual stream to the Club, but only the most stoically phlegmatic took their usual places inside; the majority were to be seen on the steps or against the railings looking with all eyes at the Russian gunboat Mandjour across the water.
For indeed on Captain Crown's little ship there were signs of something portending. An ensign flew from each in proper war-trim, steam was yetting up and presently it was seen that the ship was being painted black, with all speed. One who went on board brought back tidings of a feverish activity and of a distinct sense that strangers of other nationalities were no longer welcome. The Mandjour, it may be noted, has not been out of the river since her arrival two months ago and her gun practice has not therefore been very recent. She had not left at midnight but was understood to be due out early this morning.
Apart from the Mandjour's prospective movements, interest mainly attached to the fate of the C. E. R.S. Mongolia, which left this on Sunday with the weekly mails for Europe vid Siberia, and a number of passengers, including among others Mr. P. Varawa, the company's agent, Mrs. Varawa, and their child. A rumour had been afloat on Monday evening that the Mongolia had been stopped by Japanese, but although such might well be possible, seeing that her times-of departure, her speed, and every other fact about her are well-known, the story did not get much credence. Yesterday morning, however, it revived more persistently. What was certain was that the Mongolia had not arrived at Dalny, where she would have been due on Monday night ort latest yesterday morning had she been going at full power. The understanding was that she would proceed at her fastest and her non-arrival certainly gave colour to the rumour. So far as could be ascertained she had not reached Dalny last night.
During the morning it became known that hostilities had actually taken place at sea though the particulars were vague. There was good authority for the statement that three other of the ©. E. R. steamers had been boarded by the Japanese, namely the Moukden, the Shilka and the Manchuria. The latter is lying under repair in Nagasaki harbour and could not put to sea for a week in any case, but the captain, it is said, was invited to present himself to the Japanese authorities there. The Moukden and Shilka which were also said to be detained at Nagasaki were subsequently allowed to proceed. Another version of this story has it that the commanders of the three vessels have simply been warned not to leave that port.
A rumour simply had it that two Japanese steamers hud been sunk by the Russians, one near Chefoo and one at Fusan. It will be seen that in fact the Japanese have captured two Russian men-of-war.
In the afternoon the Groat Northern Telegraph Company announced that cable communication with Viadivostock had been into pted, but that telegrams for all stations in wutsin and Siberia might be forwarded vi By way of relief from all this disquieting news the German Postmaster announced that as the result of telegraphic enquiries made at Port Arthur, as to the conveyance of Siberian mail in the event of war, he had been informed by the postal authorities there that until further notice mails would be forwarded over the railway as before without restriction. lith February.
There was a quieter spirit abroad in the Settlement yesterday, though the news which came in during the day was of a more tangible and authentic character than any which had caused so much commotion on the previous day. A very few of-war within the harbour itself. Confirmatory details came in during the day from several sources and the latest were to the effect that the vessels hit were two battleships, the Retvizan and the Tsarevitch, and the cruiser Pallada. Admiral Alexeieff has indeed owned up to the fact that these vessels are " damaged."? A statement that the two battleships are sunk and that the cruiser is ashore is probably nearer the truth. There is lose foundation for the report that the ill-fated ships were part of a squadron outside the harbour and that two others which were endeavouring to make their retreat within were sunk in the very mouth of the harbour. 'The attack is' understood to have been made quite unexpectedly at midnight.
The disaster at Chemulpo is even more humiliating for Russia than at first appeared. The Coreotz and Varyag seem to have been caught not by a Japanese squadron but by the vessels escorting the Japanese transports with troops for Corea. Having been caught, the Russians showed fight for thirty-five minutes, but with such ili-success that they inflicted not the slightest, damage on their assailants and in the end the Coreetz was blown up by the Russians themselves and the Varyag was followed and sunk. The ©. E. R. 8. Sungari was destroyed at the same time; why she was not merely made a prize is not very clear. 5 News was received carly this morning from Tientsin that the Japanese fleet is still bombarding Port Arthur, and evidently with considerable effect.
To complete the story of disaster, the fate of the C. E. R. Mongolia with the Siberian mails and passengers was still unknown. No news could be obtained of her at Dalny, Chefoo or Nagasaki; there was an unconfirmed report to the effect that, she had been taken to Saseho.
Little news comes to hand of land operations as yet, but there is authority for the statement thay a bri on the Manchurian railway has been blown and thirty Russians killed. Mountes bandits have been busy im' Manchuria lately; their leaders may speak better Japanese than some people suspect.
The painting black of the Russian boat: Mandjour was practically finished Yesterday, She stilt es off the French Bund. It had been stated that the Chinese authorities had ordered her out from Shanghai, as a neutral port, but this was unsubstantiated. Her prospects if she had to leave could not be very cheerful. Circumstantial details are plentiful ax to the Japanese forces lying in wait for [that a Japanese cruiser and sundry her outside, the favourite version being
torpedo boats are on the patrol. Indeed, Japanese cruiser is reported by an: ineoming steamer to have been seen off the mouth of the Yangtze. So far the Chinese Government has not been officially notified that a state of war exists and until this is 60, or a demand is made by some other neutral Power, the Mandjour may remain.
"The Kayo Maru cleared on Tuesday at shanghai for Japan, but the captain will not risk putting to sea and she remains here for the present.
The initial and striking successes of Japan have brought her, as was only to be expected, the full tide of Chinese people still declined to believe that war sympathy. In every teashop of Shanghai, had actually broken out, but even these the speedy downfall of Russia is predicted had to drop their scepticism as the morn-/ and the attitude of the Government itself ing brought in news of more and more) cannot fail to be affected. Any attempt Tapanese successes.
Early in the morning information reached this office, and was published as an "Extra," of the arrival of the Japanese standing ¢quadron. outside Port Arthur and the torpedoing of three Russian men-on the part of Russia to trespass beyond the limits of Manchuria into other Chinese territory will be opposed and it will not take much provocation to turn passive into active resistance in a more general sense. There are now at least 65,000 well-drilled
Text read from the printed page and cleaned; old type leaves the occasional error.