re would have been an actual
saving of $180 a ton over the price made on the original contracts.

Congress was not, however, satisfied with this. If the Company could
make the iron and come out clear at $250 a ton, it was thought that a
profit of $150 a ton was too much to allow, and therefore Congress voted
that the Government price for armor-plate in future should be $300 per
ton.

They offered at this price to make a contract for twenty new
battleships, which would keep the armor works busy for the next ten
years.

The Carnegie and Bethlehem companies were indignant at this offer, and
refused it absolutely.

They insisted that they could not begin to supply armor for less than
$442 a ton, and that then they would be making little profit on their
work.

They reminded Congress that they had added costly machinery to their
plants to oblige the Government, and that the country ought to be
willing to pay them enough money for their work to reimburse them for
the sums they had laid out.

Congress would not listen to this argument. It declared that the
armor-plate people had formed a trust by which they hoped to force the
Treasury to pay them any price they chose to ask, and finally declared
that if armor-plate could be made at an actual cost of $197.78 per ton,
the Government would no longer pay $558 to benefit the pockets of
private individuals.

Further than this, Congress declared that if the Carnegie and Bethlehem
people would not make the armor for $300 a ton, the Government would go
into the business for itself, and leave these two companies with their
machinery on their hands.

The committee appointed to examine into the cost of establishing
government armor works is to be ready to hand in its report next
December.

In the mean while the three new warships that are building will have to
wait, and no new vessels can be commenced until this very important
matter is settled.

* * * * *

Startling and terrible news reaches us from Spain.

Senor Canovas del Castillo (_Casteelyo_), the Spanish Prime Minister,
has been assassinated!

The whole of Europe is greatly excited by this dreadful news.

[Illustration: Map

The shaded portions are British possessions. Islands owned by Great
Britain have names attached.]

Senor Canovas had overworked himself during the last session of the
Cortes, and this, combined with the worry of Cuban affairs, had broken
down his health.