e eastern sky was beginning to show a pale rosy glow,
and soon the first rays of the rising sun turned the edges of clouds
into flame. Across this glowing expanse the mainland stretched as
far as the eye could see, a dark, low-lying, emerald-hued mass,
varied and mysterious.

As Hugh gazed, the sun rose into view, flooding earth and sky and sea
with glorious light. The boy drew a deep breath of wonder and turned
to look around him on all sides. As he did so, his eyes rested on
something which changed his breath of admiration into a gasp of
astonishment.

At the base of the mound on which he sat, partly hidden by clumps
of stunted cypress and palms, was a small hut built of bamboo
and thatched with palm leaves. It was built in the form of a
lean-to against the slope of a sand dune near the shore, and at
first glance it seemed to be part of the island itself. Indeed,
it was so well concealed that Hugh might never have noticed it
at all, save for the fact that he caught sight of a canoe with three
men in it approaching the hut, from behind still another island.

Some instinct warned him not to let himself be seen, and he slid
down from the top of the mound and lay flat, watching the canoe.
He felt like a scout in the enemy's territory, or a sentry on duty,
stationed there to observe the actions of unknown foes.

To his surprise, the canoe came to land directly in front of the
hut, and the three men sprang out into the shallow water and drew
it up on the beach. From the bottom of the canoe they lifted a long
object rolled in canvas. Suspending this from their shoulders, they
disappeared into the hut.

CHAPTER IV

THE HUT ON THE BEACH

Hugh was agog with curiosity. He felt that he must find out who were
those three stealthy strangers and what they were doing there.

"Perhaps they're smugglers," was his first thought. "If they are,
I'd be doing a real service to Uncle Sam if I could report their
whereabouts to the _Petrel_ when she comes back this way. Gee! it's
worth the risk! Here goes!"

Without stopping to think much more about it, Hugh began to creep
forward on hands and knees down the mound and quite close to the
bamboo lean-to. Though usually unwilling to play the part of an
eavesdropper, he felt justified in his present impulsive venture
by the actions of the three men, for they seemed to be engaged
in some underhand work which would not stand the light of day.
So hiding himself behind