“I have but this minute received Mr. Lazar’s report of the battle,” he spoke slowly, punctuating his words; “he tells of the rout of the rebels, which is good news indeed, but he makes a serious charge against you, Mr. Perry.” Here the captain took in his hand a paper which he had doubtless been reading to the executive officer before Phil had appeared. “This is Mr. Lazar’s report; I shall read it to you: ‘It is my painful duty to report to you the following incidents which happened about 4 P. M. this afternoon,’” the captain read from the paper in his hand. “‘By order of the minister I left the legation at 3:30 P. M. and rode out to the lines to view the battle which I believed was about to commence. Upon my arrival at the outskirts of the city the first assault was made, which I was too far away to witness distinctly, but I saw that the rebels were repulsed. From my position I sighted two figures in white on the top of the hill, La Mesa; these aroused my suspicions, believing they were foreigners helping the government arms. Upon closer investigation I was astounded to recognize in these figures Midshipmen Perry and Monroe, apparently in command of a detachment of Verazala infantry. “‘Believing that they were committing an unwise act, I approached Mr. Perry and ordered him to leave the hill at once and return with me to the legation. “‘He refused to obey and defied my authority, turning his back upon me. “‘By your order I was in supreme command over our men ashore and feel that I was within my authority in giving this order to Midshipman Perry. “‘Such a serious breach of military discipline should not go unpunished, and for the good of the service I have to request that Midshipman Philip Perry be brought to trial by general court martial on charges growing out of this incident.’” The captain ceased reading and laid the paper on the table. Phil was alarmed at the serious sound of the charge against him; he felt he was hopelessly involved. Even if he could prove Lazar a traitor would not his own guilt be proven? According to military law an order must be obeyed without question. He tried to speak, but his throat was dry. Captain Taylor waited, his face full of compassion for the stunned boy. “I shall not ask a statement from you now, Mr. Perry,” the captain said finally. “I fear the charge is of such a serious character that the admiral will order a court at once.” Phil left the cabin and with a heart full of bitterness sought his own room. Sydney read in his chum’s face the bad news. “So he has already done his work,” he exclaimed, as Phil entered looking tired and worried; “but cheer up; you are in the right, and when the court has the true story, Lazar will find himself in a position that with all his cleverness he will have difficulty to explain.” Phil smiled gratefully at his companion’s cheerful attempt to console him.