immediate vicinity fell almost immediately afterwards, and it became evident that the whole of the forts on the eastern ridge were practically doomed. Nothing now could stay the victorious onslaught of the Japanese, and the capitulation of Port Arthur, which but a little while before had seemed so remote and conjectural, now loomed in the immediate future. But even yet the world was hardly prepared for the end which was imminent. Up to the last, General Stoessel's dispatches had been confident and defiant, and it was thought to be quite likely that even yet he would reveal some hitherto unsuspected resources. [Sidenote: The Surrender of Port Arthur] In his somewhat rhetorical dispatches to the Czar, General Stoessel had repeatedly declared his determination to fight to the death, and although the signal successes of the Japanese during the month of December had evidently reduced very largely the resisting power of the garrison, the general expectation was that the hopeless struggle would still be carried on, and that Stoessel and his troops would in the last resort retire to the fastnesses of Liau-tie-shan. While deprecating this desperate counsel, as involving the useless shedding of blood, the world would have applauded its heroism. But as it happened, other counsels prevailed. On the morning of the first day of the new year General Nogi received a letter from General Stoessel proposing negotiations for capitulation, and the proposal was immediately accepted. But operations were not at once suspended. The Japanese attacked the same morning the Fort of Wantai on the East Ridge, and captured it after only slight resistance, while several of the forts in the vicinity were blown up by the defenders. In further recognition of the fact that all was lost save honor, the Russians then proceeded to explode mines on all the warships in the harbor, in order to ensure that they should be useless to the enemy into whose hands they were about to fall. Of the destroyer flotilla, only four vessels remained serviceable. These put to sea on the night of January 1st, and, managing to evade the blockading squadron, reached Chifu, where they were immediately dismantled. Then at last a truce was proclaimed, and for the first time for six long months the thunder of the great guns rolled no longer about Port Arthur. Immediately news of the proposed surrender was received in St. Petersburg, the Mikado magnanimously expressed his high appreciation of the loyalty and endurance displayed by General Stoessel on behalf of his country, and gave orders that all the honors of war should be extended to him. On January 2nd the capitulation agreement was signed, its essential terms being as follows:--