At one time they passed so close to the ambushed pickets that the latter could distinguish the words "after midnight" and "set the boy loose."

"They're talking about Hugh," said Billy to himself, and his heart beat fast with excitement. The words gave him assurance that his chum was alive, which was some comfort.

"I think I'll just have to follow them," he mused a few moments later; and telling Norton and Alec that he would be back very soon, he slipped away, trailing Bego's men, before Norton could prevent him from going.

It would have been better for Billy had he remained in hiding; but he was eager to know how Durgan and his confederates would manage to run their cargo on board the Esperanza, having no motor boat to use; and he was even more eager to find out what had become of Hugh.

Without stopping longer, therefore, in the neighborhood of the bonfire, he hurried away toward the spot at which he had heard the men propose to run the cargo.

He must have crept onward for ten minutes or so, when he head a pistol fired.

The shot was followed by two or three others in quick succession.

This made him more than ever eager to find out what was happening. He doubled his speed. Fortunately, by mere chance, he had stumbled upon the very stretch of ground which he and Dave had traversed earlier in the day; the trail was fairly good, and he knew just how to proceed.

All this while he had not seen a single person, and he had not been seen by any of the smugglers.

After a few minutes he heard more shots sounding much nearer, then shouts and hoarse yells, mingled with the sharp staccato of pistols and rifles. He felt sure that by this time the soldiers under Lieutenant Driscoll had come up and were having a lively fight with the outlaws, the latter trying to defend their property, and the former to confiscate it.