Thursday Island, December 27 Chinese files by the mail steamer show that at the capture of Port Arthur the lighting was of a most sanguinary character, and altogether it was a dangerous and exciting business. The Japanese effected a"' landing with surprisingly small loss and owing tn the stupor of the Chinese were soon within the fortifications. A series of hand to hand encounters took place with a couple of thousand of Li Hung Chang's soldiers who stood to their posts manfully, although their officers deserted them shamefully. Upon entering the town the first thing that met the eye of the Japanese was a number of Coreans and others of their men, who had been captured by the Chinese before the attack began, lying headless m the streets, their bodies being horribly mutilated. This sight so enraged the Japanese that no re straint was exeroised towards the enemy and little quarter was given, most of the Chinese being killed or seriously woundpd m the terrible battle which followed. This accounts for the |ieavy loss among the Chinese, whose cruelty to their foes was thus terribly punished. A large number of junks which were filled with Chinese officers and soldiers were torpedoed by the Japanese boats and damaged to a great extent. The Chinese losses will never be known. The garrison m Port Arthur consisted of at least 20,000 Chinese soldiers and seven generals, who were charged by special decree from the Imperial Government to hold the fort at peril of their lives, and m the event of their being unable to carry out their instructions they had distinct orders to blow up the forts, magazines, arsenals, and workshops, destroy th,e docks, rather then let them fall into the hands of the enemy. Long range firing began on November 20, and as long as the Japanese guns did not succeed m working much havoc the Chinese made a show to fight, but the whole line of war ships began to reduce the radius of the investing circle, the defenders of the outer forts lost heart. .E»efore the first fort fe}l six generals and civil officers contrived to escape m junks. The junks wejre waiting a tnile or two from the port, to the north, with all valuable| on board, and as soon aa they recognised that the enemy were m earnest they made off. 