The Secretary did make the inquiries, and found that the actual cost of making a ton of armor-plate was $197.78. After an elaborate calculation of profit and loss, and the cost of the machinery used in making the armor, he decided that the armor could be made for $250 a ton. He suggested that the Government ought then to allow the companies a liberal sum per ton for profit on their enterprise, and suggested that a fair price to pay would be $400 per ton. Had Congress accepted this suggestion there 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.