ADMIRAL LOSCHINSKY.

In the early hours of March 10 our destroyer division went out scouting. At dawn they were engaged by the enemy, and we lost the Steresguschy, which was sunk. At 8.18 the enemy's fleet appeared off Liao-tieh-shan. At 8.30 three battleships and two light cruisers separated from the rest and took up their position about a mile from that hill, whose cliffs ran at right angles to our shore front. None of our batteries could fire on them, and Liao-tieh-shan had on it, as already stated, instead of guns, a lighthouse. They were in 'dead water.' It was impossible for us to use high-angle fire, controlled from the highest point of that hill, against these ships, for the gun-mountings in the seaward batteries did not allow of enough elevation or of all-round fire. Telephone connexions to the observation-posts also were then only in the process of construction. This simple manœuvre of the enemy rendered us absolutely helpless.

At 8.45 a.m. an incessant roar commenced, followed by the detonation of 12-inch shells in the New Town. It was galling to see these shells falling and no action being taken on our part. The Fortress Staff every moment were receiving information of the damage being done to the New Town, but could do nothing to drive off the enemy's ships, which lay in three lines under shelter. The first line fired systematically and deliberately, evidently trying to hit our ships and the harbour, for several of the shells struck the port workshops, and fell into the western and eastern basins. At 11 the firing suddenly ceased, and our observation post reported that the first line was steaming off, their stations being taken by the battleships in the second line. At 11.25 they started again. This time all the shells fell in the inner harbour; some even struck the ships, but did not stop the work. About 1 p.m. the enemy steamed off in a south-easterly direction and disappeared. From 9.30 a.m. to 1 p.m. the Japanese had fired 208 12-inch shells, and none of us will ever forget our humiliation that we should have been shelled by a fleet which could come right up to our shores, but which we could not touch.

From March 10 all work on the armament of the place came to a standstill, save for guns being dragged up and mounted on Liao-tieh-shan. In the fleet and the port alone was work hurriedly pushed on, for the artificers from the Baltic yards began to arrive from St. Petersburg. These, under the immediate supervision and direction of that energetic and clever engineer Kuteynikoff, set to work to repair the ships, and things hustled.

While work was thus being feverishly carried on in the port, the military garrison, bored by the want of occupation, got out of hand, and soldiers took to highway robbery. This became so common that private persons feared to go out alone.

COLONEL KHVOSTOFF.