The school was organized upon military lines, and each cadet was attired in military uniform and was given instruction in military matters daily. The regular studies were similar to those at any first-class preparatory school. Captain Putnam was at the head of the school, and his first assistant was Josiah Crabtree, and his second assistant George Strong. The majority of the boys liked the captain and George Strong very much, but Crabtree was a sour and morose individual they all but despised, even though they had to admit that he was well educated and could teach when he set his mind to it.

Jack Ruddy and Pepper Ditmore were chums, hailing from the western part of New York State. Jack was a trifle older than Pepper, but both were of the same size. Jack was a whole-souled fellow and it was small wonder that, at the first election for officers, the cadets chose him as the major of the school battalion. Pepper was full of fun, and this had gained him the nickname of Imp. He was content to remain “a high private in the rear rank,” as he expressed it, but nobody loved him any the less on that account.

At the academy, Jack and Pepper had speedily become acquainted with a number who had since become their warm friends. There was Dale Blackmore, just introduced, who was a great football player, and also Henry Lee, who was captain of Company A, Bart Conners, who was captain of Company B, Paul Singleton, generally called Stuffer because of his fondness for eating, Andy Snow, an acrobatic youth who was the best gymnast at the Hall, Joseph Hogan, usually spoken of as Emerald on account of his Irish brogue, and a score of others whom we shall meet as our story progresses.

These were Jack and Pepper’s friends. The chums had also made some enemies, of whom the worst was Dan Baxter, the bully of the school. The bully at this time had two cronies almost as bad as himself named Gus Coulter and Nick Paxton, and also a toady, John Fenwick, called by all the students Mumps.

Rivalries had been keen almost from the start, and it had galled Dan Baxter exceedingly to see Jack made major of the battalion, he himself having plotted and schemed to obtain that honor, but without avail. From that hour on the bully did all he could to get Jack and his chum into trouble. This at last led to a fight between the bully and Jack, and the youthful major came out practically a victor, although the fight was broken off before it was finished. But Dan Baxter boasted that he would yet whip Jack and whip Pepper, too.

During the early part of the winter George Strong, the second assistant teacher, had mysteriously disappeared. Two strange men had been seen around the Hall several times by Jack and Pepper, and it was at last learned that the strange men had something to do with the disappearance of the assistant teacher. A hunt was instituted by Captain Putnam, in which he was joined by Jack, Pepper, Andy Snow, and Dale Blackmore. The missing instructor was found a prisoner in a cabin in the woods, his captors being the two mysterious men, who proved to be relatives of George Strong. They had lost their fortunes and this had turned their brain, so that they were not responsible for their doings. As soon as the teacher was rescued, he sent the demented men to the west, a relative from that part of the country coming on to take them away.

George Strong had been very grateful to the boys for what they had done for him, and he did what he could to help them along in their studies. The insane relatives had imagined that the teacher had hidden away a fortune belonging to the family. The teacher told the boys that it was true that, during the Revolutionary War, his ancestors had buried a pot of gold, to keep it out of the hands of the British.

“But it was not worth anything like a million, as my unfortunate relatives believed,” had been George Strong’s statement to Jack and Pepper. “At the most it would be worth eight or ten thousand dollars.”

“That’s a tidy sum,” Jack had answered.

“You are right.”