A battery on the eastward arm of the bay opened fire on the flag-ship, and this was also shelled. Twelve 8-inch shells were fired from the eastern forts, but all fell short. About five or six light shells were fired from the half completed batteries. Two of these whizzed over the _New York_, and one fell short. The ships left the bay for the open sea, the object of discovering the whereabouts of the batteries having been accomplished. In the neighbourhood of three hundred shots were put on land from the three ships at a range of from four thousand to seven thousand yards. No casualties on the American side. The little monitor _Terror_ captured her third prize, and the story of the chase is thus told by an eye-witness: [Illustration: U. S. S. PURITAN.] “The Spanish steamer _Guido_, Captain Armarechia, was bound for Havana. There was Spanish urgency that she should reach that port. Aboard was a large cargo, provisions for the beleaguered city, money for the Spanish troops—or officers. The steamer had left Liverpool on April 2d, and Corunna on April 9th. “Ten miles off Cardenas, in the early morning, the _Guido_, setting her fastest pace, made for Havana and the guardian guns of Morro. Ten miles off Cardenas plodded the heavy monitor. The half light betrayed the fugitive, and the pursuit was begun. “Slowly, very slowly, the monitor gained. It would be a long chase. Men in the engine-room toiled like galley-slaves under the whip. There was prize-money to be gained. The _Guido_ fled fast. Every light aboard her was hid. “Reluctantly the pursuer aimed a 6-pounder. It was prize aim, and the shot found more than a billet in the _Guido’s_ pilot-house. It tore a part away; the splinters flew. “Another 6-pounder, and another. It was profitable shooting. The pilot-house, a fair mark, was piece by piece nearly destroyed. Jagged bits of wood floated in the steamer’s wake. “The gunboat _Machias_, which was some distance away, heard the sound of the firing, came up, and brought her 4-inch rifle into play, firing one shot, which failed to hit the Spaniard. This, however, brought her to, and Lieutenant Qualto and a prize-crew were put on board.” A cablegram from Hongkong announced the capture of the American bark _Saranac_ off Manila, by the Spanish gunboat _El Correo_. By a conference of both branches of Congress a naval bill of $49,277,558 was agreed upon. It stands as the heaviest naval outlay since the civil war, providing for the construction of three battle-ships, four monitors, sixteen torpedo-boat destroyers, and twelve torpedo-boats. The U. S. S. _Newport_ captured the Spanish sloop _Engracia_, and the U. S. S. _Dolphin_ made a prize of the Spanish schooner _Lola_.