Colonel Masterly spoke a few words in a low tone to Major Webster, a retired army officer, who was the academy instructor in military tactics. In turn the latter spoke to Major Rockford, and then to Colonel Whitford, of the regular army. Dick wondered what they were saying, but as they were behind him now he could not hear.

The officers paused in front of the joking Perkins. They seemed to see something.

"Great Scott!" mused Captain Dick Hamilton. "Has Perk disgraced us by putting his belt on wrong side out?" Yet he dared not turn to see. A moment later the inspectors passed on, and Dick breathed easier. Then, as Colonel Masterly and the others passed behind the rear rank of Dick's cadets, finishing their examination, and moved on to the next company, our hero breathed a sigh of relief, and somewhat relaxed his stiff position.

"I feel as if I'd just been to the dentist's," whispered Perkins, though not so quietly but what it carried to every lad in the company.

"Silence, Perk!" commanded Paul Drew, but he shook with inward laughter.

There were two more companies to inspect, and until they had been passed on it would not be known which command had been awarded the prize.

But the delay was not for long, and presently the group of officers returned, and stood in front of Dick's company. Colonel Masterly then announced, in a few, well-chosen words, that the young millionaire's cadets had won the prize, though, he added, that it had been difficult to decide, where there was so much general excellence displayed.

"And so allow me, Captain Hamilton, on behalf of the faculty of the Kentfield Military Academy, to present you and your company this medal," went on Colonel Masterly, and stepping forward he handed Dick a small box, on the white satin lining of which glittered a shield of gold.

"Three cheers for Captain Hamilton and Company B!" called Captain Teddy Naylor, of Company E.