During breakfast the mysterious vanishing of the schooner was discussed, with what eager interest may be imagined. They could not understand why the noise of her incoming anchor chain had not been observed. Nor yet, why the creak of the blocks and the rattle of the rigging as her sails were hoisted, had not been heard. It was Tom who solved the first part of the puzzle.

Coming on deck after breakfast, the lad found the sun sparkling down on the dancing waters, and flashing brightly on the white-capped wave tops. Looking in the direction in which he was sure the schooner had lain the night before, he perceived a dark object bobbing about on the water. It looked like a barrel. And so, on investigation, it proved to be. When the sloop was sculled alongside by her big sixteen-foot oars, they found that an anchor chain had been made fast to the keg. The schooner had silently slipped her moorings in the night. The fact that the keg was fast to her anchor chain would make it an easy matter, however, for her to pick it up again at her leisure.

“Does that mean that they saw us, do you think?” asked Mr. Dacre.

Mr. Chillingworth shook his head.

“If they had seen us,” he said rather grimly, “I hardly think we should have all been here this morning. At any rate, that is the reputation that Bully Banjo has. He has an unpleasant way of disposing of any one he thinks may have spied on him.”

“I don’t see how in the twentieth century such a rascal can be permitted at large,” said Mr. Dacre angrily. “He ought to be captured and his just deserts dealt out to him.”

“Well,” said Mr. Chillingworth, “the trouble is just this. Most of the ranchers hereabouts are poorish men. The country has not been fully cleared, and their ranches, so far, yield them small profits. This Bully Banjo pays well for the teams he borrows. Generally, when the horses are returned, there’s a twenty-dollar note with them.”

“But the man is engaged in an illegal business,” said Tom.

Again Mr. Chillingworth smiled.

“It’s mighty hard to get the average man to see that smuggling anything, from cigars to Chinamen, is illegal,” he said. “On the contrary, most men appear to have an idea it’s smart to beat Uncle Sam. But,” his voice changed and took on a stern note, “I, for one, am not going to stand for this rascal’s domineering any longer. Some weeks ago I wrote to Washington and informed the Secret Service bureau there exactly what was going on. They promised to investigate, but since then I’ve heard nothing more. You can readily see that it would be folly for me to make a stand alone against this man. Why, he’s capable of swooping down on my ranch and burning it to the ground.”