The Birmingham age-herald., 1912-06-08
FEDERAL OUTPOSTS
 ADVANCE TOO FAR Driven Back in a Sharp
 Skirmish With Rebels AMERICAN ARRESTED
Letcher Demands His ReIease-State of Chihuahua Issues Bonds to De- fray Expenses = Appoint
 ments Cause Comment

Chihuahua, Mex, June 7.-Federal day and were driven back in a sharp skirmish by 200 rebels under Gen. Jose Campos, few miles south of santa Ysabel 45 miles west of here.
 The federals. so in number, escaped without loss and are believed to have been part of the column under General Rabago.
 Colonel Raoul Madero, a brother of the President is reported to have suc- Rabago formerly under General Villa, who Is said 10 have been arrested for insubordination.
 More troops were sent westward from here today to reinforce the col umns under General Campos and Col. Felix Terrazas. The rebels have near ly 2000 men along the line of the Mex ican Northwestern railway, west from this city.
 Cruz Ortiz of Fl Paso, said to be a citizen of the United States, was placed in the Chihuahua penitentiary today, charged with being a federal spy. Marion Letcher. American consul here, has demanded of General Orozco that ortiz be set at liberty and the de- mand has been forwarded to the rebel chief at Bachimba Pass. Senor Bellestoros, who claimed to be representative of a certain faction in the Mexican congress desiring to treat with the rebels, was arrested and ordered held just as he was about to board train for Juarez. It is alleged he Is government spy.
 Bonds Authorized
 Bonds in the sum of $1,000, ,o00 and for any additional amount that may be found necessary for the successful prosecution of the revolution against the Mexican government were author 'zed today by the legislature of the state of Chihuahua
 Two agents have left here for New York city to negotiate the sales of the bonds which are guaranteed not only by the state of Chihuahua but by Gen. Pascual Orozco, as chief of the lib- erals.
 Just where the bonds are to be sold was not made known at headquarters but it was said that American money would not be sought. It was said agents of foreign banking houses in the Unit ed States, presumably a Canadian firm. had agreed to take the first block of bonds and subsequent issues, stipulat- ing only that the bonds be guaranteed by the state of Chihuahua as we'll as by General Orozco.
 Debt Is Safe
 Whatever the outcome of the present revolution 1t is believed that the state of Chihuahua would never repudiate it's debts contracted through it's recognized legislature, and as the close of a revolu- ton usually leaves path of chaotic con ditions, the guarantees are required to meet all claims The rebel financial com mittee believes it can persuade the bank that no risk is involved.
 The rebels appear to be supplying them selves not only with money, but also with needed ammunition and rifles This is being brought into the rebel camps at the rate of 25,OOO to 5000 pounds per day
 The insurrectos are particularly joyful over the acquisition of about 60,OO0 rounds received by way of Columbus, N NJ, two days ago. Though the United States au- thorities arrested a number of these con veyors they were unable to prevent the shipment from crossing the frontier
 Ammunition is being transported rapid ly to Bachima. Al miles south of here. where the main engagement with Gen eral Huertas forces is expected within d week. The work of fortifying the almost impregnable pass at Bachimba continues unabated.