There was an air of suppressed excitement about Clipperton, and a smoldering light in his black eyes. Catching Morales by the arm, he pulled him into the sitting-room.

"Pedro Morales!" exclaimed Matt, turning to Chub and Susie. "Why, he's the man your father gave the letter to. You'd better wait and hear what he has to say, Chub. We're getting at the nub of this thing in short order."

"Who told you?" demanded Clipperton, peering at Matt. "About the letter, I mean," he added.

Matt explained briefly how Hawley had dropped the letter and how he had picked it up.

"Hawley," scowled Clipperton. "Dace Perry must have given it to him."

"Perry?" returned Matt and Chub, in a breath.

"Yes, Perry," hissed Clipperton. "There's a plot. He's in it as well as Hawley. Tell 'em, Morales," Clip added, nodding to the Mexican.


[CHAPTER IV.]

DACE PERRY'S DUPLICITY.