Early on the morning of the 7th, according to the testimony of sworn witnesses, examined by the American minister, Mr. Wheeler, the Costa Rican troops entered Virgin Bay and surrounded the office of the Transit Company. The officer in command gave the order to fire, and nine American citizens, mostly laborers in the service of the company, and all of them entirely unarmed, were killed or wounded by the first volley. The wounded were immediately run through with the bayonets of the soldiers and swords of the officers. Then the doors of the building were broken open, the trunks stored in it were rifled, and the persons of the murdered Americans were robbed of the money, watches, and jewelry, found on them. Nor were the brutal passions of the invaders satisfied with these acts. They afterward set fire to the wharf the Transit Company was just completing, and declared their intention to exterminate every American on the Isthmus. They commenced the work of destruction by burning to the water’s edge the wharf which American capital had constructed for the use and advantage of Nicaraguan labor and Nicaraguan products. To San Juan del Sur and to Rivas, the entrance of the Costa Ricans was more orderly. At Rivas, particularly, Mora made every effort to conciliate the people of the country. A prefect was appointed, and D. Evaristo Carazo, who for several years had been accumulating a fortune from the transit of Americans across the Isthmus, accepted the office. Orders were also issued prohibiting the impressment of men for military service; but urgent invitations were made to the people to join those who professed to have come for their liberation from the yoke of the Americans. Few, however, if any, accepted the invitation; and the President of Costa Rica did not fail to express his disappointment at the backwardness of the people to join his ranks. He had trusted too much to the partial representations of the Legitimists, and he afterward complained bitterly of the deception practised on him. An hour or two after Walker landed at Granada, on the morning of the 8th, an American from the Transit came to inform him of the events occurring there. At the same time the letters from Leon indicated that the alarm there had subsided. Hence orders were at once issued to have the whole marching force then in Granada, with the exception of two companies to garrison that place, ready to move the next morning by daylight.