"Aw, why don't they send a warship to do the job?" demanded Jimmie.

"Because," replied the lieutenant, "Uncle Sam has taken the republics of South America under his protection, and he does not care to spank them in the presence of all the nations of the earth! He wants to get this man Lyman—Horace M. Lyman, to be exact—out of the clutches of a crooked gang in Paraguay without wasting money and lives. Hence the arrangement with you boys."

"I have read something about the Lyman case," Ned observed, "but I have forgotten all the material points, I guess."

"Lyman," Gates went on, "took up his residence in Paraguay some years ago and opened negotiations with the government for a cattle concession. The lands known as the 'Chaco' district, lying between the Paraguay and Pilcomayo rivers, are said to be the best for grazing purposes in all South America. Years ago they were considered worthless swamps, but this is all changed now.

"Well, Lyman entered into negotiations with the president of this alleged republic and got his concession. There is no knowing how much he paid for it, for every new president of Paraguay—and they have new ones quite frequently down there—seems to do business on the theory that what he doesn't get while the getting is good he never will get at all. There have been four or five new official heads of this alleged republic within a couple of years.

"The country is on the verge of revolution most of the time and as the army goes so goes the election. Jara was made prisoner last July, and one Rojes put in power. Now, in order to keep in good standing with the army, the government is obliged to have generals who are loyal to whoever is in power. These generals must be paid for their services, of course.

"It seems that Lyman fell under the displeasure of one of these powerful military chaps, probably because he refused to give up all his profits in the cattle business. Anyway, Lyman disappeared from home, quite suddenly, and his manager was notified that settlement could be made with one Senor Lopez, an army chief, said to be a relative of a former president. So Lopez was appealed to.

"Now Lopez is a slippery chap. He denied knowing anything about Lyman, but declared that unless the cattleman appeared shortly and took up his work on the cattle concession the grant would be taken from him. That is like South American justice. Lock a man up and then deprive him of his rights because he can't appear and claim them!"

"Must be a fine healthy country!" Jimmie interposed.

"It is all of that," laughed the lieutenant. "Then this manager, I think his name is Coye, appealed to the United States consul and the consul to the president. Nothing doing! Lyman, they insisted, had not been molested by the authorities. But Lyman's people in this country are kicking up an awful row, and something must be done.