The greatest naval battle in the last 30 years was foughr in Manila Bay last Snnday and victory perched npon th American banners. Commodore Dewey's squadron completely destroyed the Spanisb fleet in Manila baibor. Three of Admiral Montijo's ships were bnrnt, one was sunk, and the rest of tbe Spanisb warsbips rendered bors de oombat by tbe American gnns. Onr fleet entered Manila Bay Snnday ruorning at 5 o'olook. Tbe forts on shoie at onoe opened flre on onr sbips at long range, and tbe Spanisb fleet, anohored off Cavite, immediately followed with their heavy gnns. Commodore Dewey's flagsbip, the Olympia, tben signaled tbe rost of tbe Amerioan fleet to draw oloser in shore and soon onr ships opened a terrific cannonade. After half an boar's figbting Dewey's sbips moved out of range of the ligbter Spanisb gnns and contiuned tbe bombardment witb the liig gans with terrible effeot. Twenty minutes later the Olympia again signaled the otber Amerioan ships to draw in at close qnarters and onoe more a rapid and incessant cannonading began. Tbis terrific bombardment soon euded tbe fight. One after another tbe Spanish vessels were silenoend, and three of tbem oanght fire, inolnding their flag-ship, tbe Reina Maria Cbristina, One Spanish vessel was snnk and several rnn ashore to escape oaptore. Commodore Dewey siienned the land batteries after a brief arr energetic bombardment. The eüeonnter lasted an honr and a half and it was a great and terrible spectiicle. Tne1 Spaniards fonght bravely and suffered heavy losses. Tour bnndred Spanisb are reportad killed including two commanders. Tbe American ships are apparently nninjured. Commodore Dewey's attaok was well carried ont. The manenvers of his squadron was a beautiful sight, and the navigation of the bay by onr ships was a remarkable feat of seamanship, avoiding as tbey did snccessfnlly tbe many shallows. Later dispatcbes reported Dewey in possession of Manila, bnt tbe cable bas been ent and up to tbis morniug no word has been beard from bim. Arrangements are being made to seud troops to take possession of tbe Phillipine Islands. Capt. Gardner, of tbe regular army, bas been appointed Colonel of tbe Fiirst Micghigan, to wbiob tbe Ann Arbor cumpany belongs. The seoond battalion of the Fonrth Regiment, of Detroit, has been added to the First greiment, thns filling np tbe twelve coinpanies. Lint-Col. Sobabel, who passed tbe examiuation, has been retained as has Maj. Hunt, of Jackson. Capt. Uarrah, of Detroit, has been appointed major of tbe Detroit battalion, while the major in Maj. Howell's place bas not been selectedr Maj. fiowell bas been appointed major and provost : marsbal of Camp Eaton. Col. Tyrrell bas been given tbe rank of major and detailed to reernit the eigbt additionaUcompanies. Rasb orders have been issued tn examine the men of the First Regiment, wbich looks as if thu regiment wonld soon be called to Washington.