Bordering Settlement—Signs that civil war wes imminent between Chekiang and Kiangsu took definite shape on October 10, when the 'Transport Department' of Mars! Sun Chuan Fang's Army began to. commander launches and junks at several places in Chekiang. Suspension of the launch services from Shanghai to the towns between here and Hangchow followed on October 12, when adherence to the ordinary passenger and freight train schedule on the Shanghai-Hangchow Railway also became impossible owing to heavy demands upon the rolling stock for the movement of troops and military supplies. Further evidence of the impending conflict included a sudden increase in the price of rice and the arrival in Shanghai of Targe numbers of refugees who were seeking the safety of the Settlement with their wealth and belongings. These ominous signs became more pronounced daily until October 15, when the Fengtien garrisons stationed at Lunghua, Pootung and Woosung, to the number altogether of about seven thousand, suddenly started to withdraw northward. The retreat was carrie ced out with great expedition, and by noon on October 16 Shanghai and its environs were completely clear of Fengtien regular troops. 'At 3 pin. that day a vanguard of the Chekiang Army about 500 strong arrived at Lunghua and took "possession of the Military Governor's Yamen without opposition. A contingent of about 1,000 men, who followed an hour and a half' later, proceeded direct to the S.N.R. Station (North) where they disarmed 400 Feng-their com mander Ning Kai-Ch'eng and the Chief of the Woosung-Shanghai Constabulary, Col. Chang Chih: ying. Although this coup wai effected peacefully, the presence at the railway station of parties of the rival forces aroused considerable alarm. The transfer of Chekiang soldiers to the North continued from October 16 up to the end of October, during which perted it is estimated that about 13,500 troops and members of the auxiliary units passed through the: Shanghai North Railway Station, These included several batteries of artillery and a number of companies of machine gunners. Apart from the troops sent northward, a garrison of about 4,200 men remained at various points in the vicinity of. Shang! about 2,720 men at ighai success with further icterics at the various towns along the Shanghai-Nanking Railway and, without serious fighting, the whole of the provines of Kiangsu fell into their hands, with the exception of a small portion in the North. The Fengtien Forces which retreated from Shanghai were commanded by General Hing Shih. Lien and the men of the Che-Kiang army who have taken their place are commanded by Col. Yen Ch'un-yang. Other changes in the locat "administration include the supersession of Col. Chang Chih-ying, Chief of the Woosung-Shanghai 'Constabulary, by a Chekiang partisan Kiang' Cheng-ching, the replacement of Li Tsu-kwei, City.
Text read from the printed page and cleaned; old type leaves the occasional error.