At one bell in the first Dog Watch (4.30 p.m.) the look-out in the fore-top of the Armadale reported a seaplane approaching from the nor'east. At first the seaplane, which was flying at 5000 feet, was taken to be one of the naval scouts returning; but, when she made no attempt to descend and circled high above the cruisers, suspicions were aroused as to her ownership.

Presently the Armadale picked up wireless messages in code, and since none of the squadron was permitted to use her radio instruments for transmitting the inference was positive.

"She's warning the Malfilio," declared the Commodore. "We'll try her with the antis."

The cruiser's anti-aircraft guns opened fire simultaneously. Judging by the mushroom-shaped clouds of white smoke that marked the bursting of the shrapnel shells, it seemed as if the seaplane could not escape being hit. But to the disappointment of all on board the Armadale the seaplane turned and flew away apparently unharmed.

All necessity for secrecy being now at an end the Commodore wirelessed the seaplane carrier, ordering two fast battleplanes to stand in pursuit, and giving instructions to the destroyer Dawson to support the aircraft.

The battleplanes ascended promptly, but an hour later they returned without having sighted the pirate seaplane. The pilot of the latter was a bit of a strategist, for instead of flying back to the Malfilio he had made a wide circle with the intention of returning to the secret base, having already warned Porfirio of his great danger.

But the pirate scout's luck was out. When still a good twelve miles from the island he was sighted by one of the seaplanes engaged in searching for the Malfilio. The two Australian airmen did their work neatly and effectively. Standing in pursuit they sat on the tail of the pirate seaplane, and with one burst from a Lewis gun sent the latter down in a spinning nose-dive, with the machine a mass of flames.

Ramon Porfirio knew now that the game was up. One chance remained—to seek safety in flight. He had provided for the contingency, for practically the whole of the specie and bullion found on his prizes had been transferred to the Malfilio's strong room. Could he but get away with the treasure without having to share it amongst his crew he would be a rich man. He decided to take a northerly course, lie low amongst the desolate Aleutian Islands until the coast was clear, and then double back to a South American port.

Unfortunately for him he had underrated the capabilities and universal use of wireless. Within an hour and a half from the time the Malfilio received the warning from her seaplane, the pirate cruiser sighted a small American tramp steaming east. The Yankee also sighted the Malfilio, and when the former picked up a non-code general call from the Armadale asking all vessels in that part of the North Pacific to report if they sighted a warship answering to the Malfilio's description, Captain Hiram Stott pulled his goatee beard and looked wise.

With a keen commercial instinct he inquired by wireless whether there were any pecuniary reward for the desired information, and a reply being received in the affirmative he then promptly gave the latitude and longitude of the position where he had sighted the pirate, and also the approximate course that the Malfilio was taking.