OTIS TO WASHINGTON, JANUARY 4, 1899

MANILA. (Received Washington, January 4, 1899.)

ADJUTANT-GENERAL, Washington:

Under date December 31, Miller reports situation at Iloilo unchanged; awaiting orders. Insurgents defiant. Instructions sent Miller to retain position and not commence hostilities. Considerable excitement here; many rumors afloat; uprising of Filipino organizations in city threatened to accompany attack of insurgents from without; the troops here can manage situation. Friendly Filipinos, men of influence, in consultation with Aguinaldo insurgents at Malolos. Have furnished them proclamation to be issued to-day. Expect good results. If Aguinaldo and advisers have not fully determined on war, friendly Filipinos think prospect very favorable. Have regiment on transports in bay for southern waters, but held awaiting developments.

OTIS