The cruelty of the Spaniards in this invasion was something terrible at times. After the battle of Penco, where, according to the chroniclers, forty thousand Indians attacked the invaders, Valdivia cut off the nose and right hand of two hundred prisoners, and sent them back to terrorize their comrades in this mutilated condition. They treated the natives with absolute contempt, and endeavoured to reduce them to abject slavery. Valdivia practically had no choice in the matter. Each soldier had to be paid a grant of land, with a certain number of slaves. The soldiers were of a fierce and intractable character, and it was almost impossible to maintain any sort of discipline among them. Valdivia founded the city of Imperial, fortified it and employed the natives in washing the gold found in this district. He also established the city of Villa Rica, which means the rich village, and was so named because of the wealth and fertility of that valley, and another town that was named after himself. In fact he endeavoured to establish a string of fortified outposts throughout that entire section of the country. The Indians were parcelled out among the conquerors, Valdivia retaining for himself about forty thousand. Although at this time the Spanish population of the valley did not exceed one thousand, yet they were able after a while to force the Indians to do their work. The men were attended by a numerous retinue of servants wherever they went, and even the women wanted to be followed by a large concourse of slaves when they attended church. Rank and importance seemed to be indicated by the number of menials.