is a lie!" Major Kosuth exclaimed.

"My dear Baron, you are woefully misinformed," the Count declared.

Peter shook his head slowly.

"No," he said, "I am not misinformed. My friend here has parted with the
money on the security of two battleships and a cruiser, now building in
Shepherd and Hargreaves' yard at Belfast. The two battleships and
cruiser in question belong to me. I have paid two hundred thousand
pounds on account of them, and hold the shipbuilders' receipt."

"You are mad!" Bernadine cried, contemptuously.

Peter shook his head, and continued.

"The battleships were laid down for the Turkish Government, and the
money with which to start them was supplied by the Secret Service of
Germany. The second instalment was due ten months ago, and has not been
paid. The time of grace provided for has expired. The shipbuilders, in
accordance with their charter, were consequently at liberty to dispose
of the vessels as they thought fit. On the statement of the whole of the
facts to the head of the firm, he has parted with these ships to me. I
need not say that I have a purchaser within a mile from here. It is a
fancy of mine, Count von Hern, that those ships will sail better under
the British flag."

There was a moment's tense silence. The face of the Turk was black with
anger. Bernadine was trembling with rage.

"This is a tissue of lies!" he exclaimed.

Peter shrugged his shoulders.

"The facts are easy enough for you to prove," he said, "and I have
here," he added, producing a roll of papers, "copies of the various
documents for your inspection. Your scheme, of course, was simple
enough. It fell through for this one reason only. A final notice,
pressing for the second instalment, and stating the days of grace, was
forwarded to Constantinople about the time of the recent political
troubles. The late government ignored it. In fairness to Major Kosuth,
we will believe that the present government was ignorant of it. But the
fact remains that Messrs. Shepherd and Hargreaves became at liberty to
sell those vessels, and that I have bought them. You will have to give
up that money, Major Kosuth."

"You bet he shall!" the American muttered.

Bernadine leaned a little towards his enemy.

"You must give us a minute or two," he insisted. "We shall not go away,
I promise you. Within five minutes you shall hear our decision."

Peter sat down at the writing-table and commenced a letter. Mr.
Heseltine-Wrigge mounted