Everywhere the wildest rumours passed from lip to lip, growing in sensation and absurdity as they went. A report, telegraphed by an anonymous idiot from Liverpool, to the effect that six air-ships had appeared over the Mersey, and demanded a ransom of £10,000,000 from the town, was eagerly seized on by the cheaper evening papers, which rushed out edition after edition on the strength of it, until the St. James's Gazette put an end to the excitement by publishing a telegram from the Mayor of Liverpool denouncing the report as an insane and criminal hoax.

The next edition of the St. James's, however, contained a telegram from Hiorring, in Denmark, viâ Newcastle, which was of almost, if not quite, as startling and disquieting a nature, and which, moreover, contained a very considerable measure of truth. The telegram ran as follows:—

Naval Disaster in the Baltic.

The Sound forced by a Russian Squadron, assisted by a Terrorist Air-Ship.

(From our own Correspondent.)

Hiorring, June 28th, 8 A.M.

With the deepest regret I have to record the first naval disaster to the British arms during the present war. As soon as it became dark last night heavy firing was heard from Copenhagen to the southward, and before long the sound deepened into an almost continuous roar of light and heavy guns.

Our naval force in the Baltic was so strong that it was deemed incredible that the Russian fleet, which we have held imprisoned here since the commencement of hostilities, should dream even of making an attempt to escape. The cannonade, however, was the beginning of such an attempt, and it is useless disguising the fact that it has been completely successful. That this would have been the case, or, indeed, that the attempt would ever have been made by the Russian fleet alone, cannot be for a moment credited. But, incredible as it seems, it is nevertheless true that it was assisted, and that in a practically irresistible fashion, by one of those air-ships which have hitherto been believed to belong exclusively to the Terrorists, that is to say, to the deadliest enemies that Russia possesses.

As nearly as is known the Russian fleet consisted of twelve battleships, twenty-five armoured and unarmoured cruisers, and about forty torpedo-boats. These came charging ahead at full speed into the entrance to the Sound in spite of the overwhelming force of the Allied fleets, supported by the fortresses of Copenhagen and Elsinore. The attack was so sudden and so completely unexpected, that it must be confessed the defenders were to a certain extent taken unawares. The Russians came on in the form of an elongated wedge, their most powerful vessels being at the apex and external sides.

"On the water the results of the air-ship's attack were destructive almost beyond description."

See [page 191].

The firing was furious and sustained from beginning to end of the rush, but the damage inflicted by the cannonade of the Russian fleet and the torpedo-boats, which every now and then darted out from between the warships as opportunity offered to employ their silent and deadly weapons, was as nothing in comparison with the frightful havoc achieved by the air-ship.

This extraordinary craft hovered over the attacking force, darting hither and thither with bewildering rapidity, and raining down shells charged with an unknown explosive of fearful power among the crowded ships of the great force which was blocking the Sound. Half a dozen of these shells were fired upon the seaward fortifications of Copenhagen in passing, and produced a perfectly paralysing effect.

On the water the results of the air-ship's attack were destructive almost beyond description, particularly when she stationed herself over the Allied fleet and began firing her four guns right and left, ahead and astern. Every time a shell struck either a battleship or a cruiser, the terrific explosion which resulted either sank the ship in a few minutes, or so far disabled it that it fell an easy prey to the guns and rams of the Russians. As for the torpedo-boats which were struck, they were simply scattered over the water in indistinguishable fragments.

Under these conditions maintenance of formation and effective fighting were practically impossible, and the huge iron wedge of the Russian squadron was driven almost without a check through the demoralised ranks of the Allied fleet. The Gut of Elsinore was reached in a little more than three hours after the first sounds of the cannonade were heard. Shortly before this the air-ship had stationed itself about a thousand feet above the water, and a mile from the fortifications.

From this position it commenced a brief, rapid cannonade from its smokeless and flameless guns, the effects of which on the fortress are said to have been indescribably awful. Great blocks of steel-sheathed masonry were dislodged from the ramparts and hurled bodily into the sea, carrying with them guns and men to irretrievable destruction. In less than half an hour the once impregnable fortress of Elsinore was little better than a heap of ruins. The last shell blew up the central magazine; the tremendous explosion was heard for miles along the coast, and proved to be the closing act of the briefest but most deadly great naval action in the history of war.

The Russian fleet steamed triumphantly past the silenced Cerberus of the Sound with flashing searchlights, blazing rockets, and jubilant salvos of blank cartridge in honour of their really brilliant victory.

The losses of the Allied fleet, so far as they are at present known, are distressingly heavy. We have lost the battleships Neptune, Hotspur, Anson, Superb, Black Prince, and Rodney, the armoured cruisers Narcissus, Beatrice, and Mersey, the unarmoured cruisers Arethusa, Barossa, Clyde, Lais, Seagull, Grasshopper, and Nautilus, and not less than nineteen torpedo-boats of the first and second classes.

The Germans and Danes have lost the battleships Kaiser Wilhelm, Friedrich der Grosse, Dantzig, Viborg, and Funen, five German and three Danish cruisers, and about a dozen torpedo-boats.

Under whatever circumstances the Russians have obtained the assistance of the air-ship, which rendered them services that have proved so disastrous to the Allies, there can be no doubt but that her arrival on the scene puts a completely different aspect on the face of affairs at sea.

I have written this telegram on board first-class torpedo-boat, No. 87, which followed the Russian fleet from the Sound round the Skawe. They passed through the Kattegat in two columns of line ahead, with the air-ship apparently resting after her flight on board one of the largest steamers. We could see her quite distinctly by the glare of the rockets and the electric light. She is a small three-masted vessel almost exactly resembling the one which partially destroyed Kronstadt in the middle of March.

After rounding the Skawe, the Russian fleet steamed away westward into the German Ocean, and we put in here to send off our despatches. This telegram has, of course, been officially revised, and my information, as far as it goes, can therefore be relied upon.

CHAPTER XXVI.

AN INTERLUDE.

At noon on the 26th, as the tropical sun was pouring down its vertical rays upon the lovely valley of Aeria, the Ithuriel crossed the Ridge which divided it from the outer world, and came to rest on the level stretch of sward on the northern shore of the lake.

Before she touched the earth Arnold glanced rapidly round and discovered his aërial fleet resting under a series of large palm-thatched sheds which had already been erected to protect them from the burning sun, and the rare but violent tropical rain-storms. He counted them. There were only eleven, and therefore the evil tidings that they had heard from the captain of the Andromeda was true.

Even before greetings were exchanged with the colonists Natas ordered Nicholas Roburoff to be summoned on board alone. He received him in the lower saloon, on either side of which, as he went in, he found a member of the crew armed with a magazine rifle and fixed bayonet.

Seated at the cabin table were Natas, Tremayne, and Arnold. The President was received in cold and ominous silence, not even a glance of recognition was vouchsafed to him. He stood at the other end of the table with bowed head, a prisoner before his judges. Natas looked at him for some moments in dead silence, and there was a dark gleam of anger in his eyes which made Arnold tremble for the man whose life hung upon a word of a judge from whose sentence there could be no appeal.