Perceiving blood on his sword, the smugglers believed what he said, and therefore rushed down into the hold of the ship, sword in hand, bent on slaughter.

Tim was immensely tickled that he had earned the reputation for valour so cheaply, and thanked his stars Sea-hawk believed him.

While Tim was alone on the deck, however, he suddenly heard unearthly shouts, screams, oaths, and the like, proceed from the hold of the ship.

“What’s all that?” thought Tim, trembling in every limb. “I wonder if they have found out any one. I didn’t see any of the crew.”

He was not left long in suspense.

There issued from the hold, the cabin, and the forecastle of the ship a band of skeletons, sword in hand.

Tim, at the first sight of them, fell on his knees, and then slipped into an empty water-barrel that was near by.

From this place he could perceive all that passed.

The Smuggler Chief had been deceived; and so had Dolphin.

But how and by whom neither of them could tell.