While the events thus far recorded were occurring, Estrada, the legitimist chief, entered Nicaragua, and established his government in Somotillo, appointing Pedro Joaquin Chamorro his minister-general, and General Tomás Martinez commander of the army to be raised.[XVII-17] On hearing that Rivas had been recognized, it was concluded to leave Somotillo, via Nueva Segovia to Matagalpa, where Gros aroused the Indians. But on the way, at Ocotal, on the 13th of August, a party of democrats attacked and defeated them. Estrada tried to flee, but was overtaken and hacked to death.[XVII-18] The town was plundered, and papers scattered, after which the assailants went away. Afterward an instrument was picked up in which Nicasio del Castillo was named Estrada's successor, who at once assumed the responsibilities of the position. However, General Martinez and Fernando Guzman, who, though respecting Estrada's good motives, had disapproved of his persistence in going contrary to accomplished facts, after his death held a consultation and concluded that the best policy was to coöperate with Rivas' government, bearing in mind the principle of legitimacy, though disregarding means and persons. Martinez and Guzman went to Leon, and succeeded with the assistance of the allied generals, and Gregorio Arbizú, the commissioner of Salvador, in making an arrangement by which there should be but one government in the republic, with certain legitimists in the cabinet;[XVII-19] pursuant to which the latter was organized as stated below.[XVII-20] Castillo accepted the arrangement and assumed the duties to which he was called. * * * * * The allied forces, having entered Nicaragua, occupied Leon in July, and in October advanced upon Managua, forcing Walker, after several encounters near Nindirí and Masaya, to reconcentrate in Granada.[XVII-21] Masaya was occupied by the allies October 2d. There was much division among them, owing to old rivalries, and the need of an influential commander was evident.[XVII-22] General Martinez was earnestly requested to hasten his movements and join the army. He had organized at Matagalpa a body of troops that subsequently bore the name of Ejército Septentrional, with which he came on; but cholera having played havoc among his Segovians at Tipitapa, he had to remain in Nindirí till the scourge abated, when he joined the allies.[XVII-23] [Sidenote: THE BELLIGERENTS IN ACTION.]