d were the riding
lights, two of which were suspended on every ship, one at the bow and
one at the stern. The sounds on board the ships had died away
completely, and it was only occasionally that the shouts of a party of
revellers were heard from the shore.

It was shortly after one o'clock in the morning when Terry, who was
still keeping his friend company, walked to the ship's rail and stood
there in a listening attitude; then he raised his voice slightly and
called Douglas to his side.

"Listen carefully for a moment, old fellow," he said; "cannot you hear
something away out there on our port bow?"

Jim listened, and presently his strained senses caught a faint sound
like the throbbing of a tiny engine somewhere away in the darkness.

"Yes," he whispered, "I certainly can hear something. To me it sounds
as though there is a small steam-launch somewhere out there; but I
certainly cannot see anything of her. What can a launch possibly be
doing out there, at this time of the morning?"

"Well," replied his chum, "if this were not a Chilian port I should be
inclined to suspect something in the nature of a night-attack; but under
the circumstances I don't quite see from what quarter such an attack
could come. The Peruvian fleet can hardly have come upon us unawares,
for we should surely have seen some sign of them; they would hardly
steam without showing any lights at all. Besides, this sound--which is
certainly nearing us, by the way--seems to me more like-- Hallo! did you
see _that_, Douglas? By Jove, it strikes me that there is something
more in this than meets the eye."

"Yes," answered Jim, "I distinctly caught sight of a flicker of flame.
It appeared to me as though somebody had struck a match for some purpose
or other, and had hurriedly extinguished it. I wonder what is
happening, away over there. There is certainly something going on that
is not quite as it should be, I am convinced."

During this brief interchange of remarks the noise of the churning
little propeller had been drawing nearer; and, after listening intently
for a few seconds longer, Douglas whispered hurriedly to his chum, "Slip
below _quickly_, Terry, and bring me up my night-glass; I believe there
is something radically wrong about this business."

In a moment O'Meara was back on deck, bearing the telescope, which
Douglas hastily snatched from him and brought to bear on the spot from
whence the sound proceeded. He had been glancin