Shortly after, the New York led her prize further out from shore and laid her to. Crew and captain could be seen rushing about the deck of the ship like a nest of ants, hiding their valuables and striving to avert some impending fate they could only guess at in their ignorance. As she came around her name could be clearly read on her stern, Pedro of Bilboa.

As soon as she was laid alongside, the Pedro was boarded by Ensign Frank Marble of the New York. Ensign Marble led a prize crew, consisting of a file of marines and seamen. With great formality the ensign swung aboard and assumed command. A burly, bare-footed American tar shoved the Spanish quartermaster away from the wheel and began to set the course of the Spaniard. The Spanish crew gathered in a terrified huddle near the forecastle and awaited developments.

Hardly had the prize crew been put on board before another freighter was seen going down the coast to the eastward. The New York, leaving the captured Spanish craft in charge of the prize crew, drew across the bows of the stranger and sent a shot into the water directly in front of her bows. She paid no attention to the challenge, but kept steadily on, and a few seconds later another shot was sent hurtling across the water in front of her. After this hostile demonstration she hauled up and soon followed the New York out to sea. It was discovered, however, that she flew the German flag, and consequently was permitted to proceed.

The prize crew from the New York took the captured vessel into port at Key West under its own steam. The ship was bound from Havana to Santiago with a valuable cargo of rice, iron and beer. On the same day two other captures were made, one by the torpedo boat Ericsson, which seized a fishing schooner under the very guns of Morro Castle and by the torpedo boat, Porter, which took the Spanish schooner, Mathilde, after a lively chase and a number of shots. Both of these prizes were taken to Key West to join their unfortunate friends.

EXCITEMENT IN HAVANA.

It was nearly five o'clock in the afternoon of that lucky Friday, when the semaphore by the lighthouse in Morro Castle signaled to the people of Havana that a fleet had been sighted. It was said to be without any colors to show its nationality. At that time La Punta, the fort on the side of the harbor opposite Morro Castle, was crowded with curious people, including many ladies. In addition, crowds of people could be seen at various points of vantage, many of them gathering on the roofs of houses. At 6 p.m. the semaphore signaled that it was the United States fleet which was in sight, and at 6:15 p.m. a red flag was run up at the signal station, warning guns were fired from Morro Castle, and afterward from Cabanas fortress, adjoining it. This caused excitement throughout the city, and was the first real note of war. When the first signal came from the semaphore station a British schooner which was in the harbor put to sea. She was immediately followed by the German steamer Remus. Some time afterward the American steamer Saratoga put to sea.

The cannon shots from the fortresses stirred up the regular troops and volunteers throughout Havana and its vicinity and there was a rush to quarters. The signal guns from the fortifications echoed to the palace and through the streets, causing people to rush from their houses, with the result that all the thoroughfares were soon crowded with excited inhabitants. Captain General Blanco heard the shots while at the palace, to which place the generals and commanders of the volunteers promptly reported, full of excitement and warlike enthusiasm. Some time afterward the Captain General, accompanied by his staff, the generals and others, left the palace and was warmly acclaimed by the soldiers and populace. The General then made a brief final inspection of the fortifications and went to a spot from which he could see the approaching fleet.

There was no sign of alarm anywhere. The Spaniards were confident that Havana was prepared for any eventuality, and they had great faith in the strength of their forts, batteries, etc., and in the effectiveness of their heavy artillery. In fact, there was a feeling of satisfaction at the warlike tremors which spread everywhere when it was seen that the hour of battle was apparently approaching and that the Spaniards were soon to give battle to their enemies.

As the time passed, more people crowded to the spot from which the fleets could be most favorably seen. By 8:30 p.m. there was a great movement of the masses through all the streets and on all the squares. The coffee-houses and clubs were crowded with excited people, discussing the arrival of the American war ships. The Spaniards expressed themselves as anxious to measure arms with the "invaders," and there was no expression of doubt as to the result. The civil and military authorities of Havana were in consultation at the palace, and every precaution possible to the Spaniards was taken to guard against a night surprise and to resist an attack if the bombardment commenced.

SPAIN'S DAYS OF GRACE EXPIRE.