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It would read he was discharged on Oct 28 1904 at Angel Island, CA on expiration of service. under excellent condition.
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Without seeing a copy of the record, we can only speculate. Please see How To: Add a Photo or Image to your Post or Comment for instructions on how to to share an image of the record.
However, based on the context, it is likely that what was actually written or should have been written was “Disch’d,” which was a common abbreviation for “discharged.” Enlisted personnel in the military service signed up for set periods of time known as terms of enlistment. The entry is stating that he came to the end of his term of enlistment and therefore, was discharged from military service.
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