Soon the two lines of ironclads closed amid thick clouds of smoke. Tegethoff, in his flagship, the _Ferdinand Max_, twice rammed a grey ironclad without effect. Then, out of the smoke, loomed up the tall masts of the _Re d'Italia_, Persano's flagship in the beginning of the fray. Against this vessel the _Ferdinand Max_ rushed at full speed, and struck her fairly amidships. Her sides of iron were crushed in by the powerful blow, her tall masts toppled over, and down beneath the waves sank the great ship with her crew of 600 men. The next minute another Italian ship came rushing upon the Austrian, and was only avoided by a quick turn of the helm. [=The "Palestro" is Blown Up=] One other great disaster occurred to the Italians. The _Palestro_ was set on fire, and the pumps were put actively to work to drown the magazine. The crew thought the work had been successfully performed, and that they were getting the fire under control, when there suddenly came a terrible burst of flame attended by a roar that drowned all the din of the battle. It was the death knell of 400 men, for the _Palestro_ had blown up with all on board. The great ironclad turret ship and ram of the Italian fleet, the _Affondatore_, to which Admiral Persano had shifted his flag, far the most powerful vessel in the Adriatic, kept outside of the battle-line, and was of little service in the fray. It was apparently afraid to encounter Tegethoff's terrible rams. The battle ended with the Austrian fleet, wooden vessels and all, passing practically unharmed through the Italian lines into the harbor of Lissa, leaving death and destruction in their rear. Tegethoff was the one Austrian who came out of that war with fame. Persano on his return home was put on trial for cowardice and incompetence. He was convicted of the latter and dismissed from the navy in disgrace. [=Venetia Ceded to Italy=] But Italy, though defeated by land and sea, gained a valuable prize from the war, for Napoleon ceded Venetia to the Italian king, and soon afterwards Victor Emmanuel entered Venice in triumph, the solemn act of homage being performed in the superb Place of St. Marks. Thus was completed the second act in the unification of Italy. The national party, with Garibaldi at its head, still aimed at the possession of Rome, as the historic capital of the peninsula. In 1867 he made a second attempt to capture Rome, but the papal army, strengthened with a new French auxiliary force, defeated his badly armed volunteers, and he was taken prisoner and held captive for a time, after which he was sent back to Caprera. This led to the French army of occupation being returned to Civita Vecchia, where it was kept for several years. [=Rome Becomes the Capital of Italy=]