De Soto, with a party of fifty men, twenty of them being well mounted cavaliers, encamped at a small village called Torebo. Gonzales was in the near vicinity with a little army of three hundred men, two hundred of whom were Indians. In the darkness of the night, Gonzales fell upon De Soto, and outnumbering him six to one, either killed or took captive all the thirty footmen; while the cavaliers, on their horses, cut their way through and escaped. Gonzales lost fifty of his best men in the conflict, and was so impressed with the military vigor of De Soto, that he was not at all disposed again to meet him on the field of battle. He therefore retired to a distant part of the province, where he vigorously engaged in the work of converting the natives, never forgetting his baptismal fee. De Soto and Cordova established themselves in a new town which they called Grenada. Here they erected a church, several dwelling houses, and barracks for the soldiers. They also surrounded the village with a trench and earthworks, as protection from any sudden assault. Gonzales was a fugitive from justice, having assassinated an officer sent by Hernando Cortes to arrest him. Cordova was a mild and humane man. Under his sway the Indians were prosperous and happy. Two flourishing towns grew up rapidly quite near each other, Leon and Grenada. The climate was delightful, the soil fertile, the means of living abundant. Many of the inhabitants of Panama emigrated to this more favored region. De Soto, leaving Cordova in command of Nicaragua, returned to Panama to report proceedings to Don Pedro. It was not till then that he learned, to his extreme regret, that the Governor had selected Nicaragua as a place for his future abode. He knew that the presence of the tyrannical governor could only prove disastrous to the flourishing colony, and ruinous to the happiness of the natives. The gloom with which the contemplation oppressed his mind spread over his speaking countenance. The eagle eye of the suspicious governor immediately detected these indications of discontent. With an air of deference, but in a tone of mockery, he said: "I judge from your appearance, captain, that my Nicaraguan enterprise does not meet with your cordial approbation." De Soto boldly, and with great deliberation of words, replied: "Governor Don Pedro, I confess that I feel but little interested in any of your movements or intentions, except when they encroach upon the rights of others. Nicaragua is at this time well governed by Ferdinand de Cordova. The change you propose to make, is to be deprecated as one of the greatest misfortunes that could befall not only the Indian inhabitants of that district, but our own countrymen likewise, who have flocked thither to escape from your jurisdiction." The countenance of Don Pedro became pallid with rage. Struggling, however, to suppress the unavailing outburst of his passion, he said, with a malignant smile: