While Stump retailed the conversation he had heard between the count and Klinger, Commander Tazewell’s indignation mounted higher and higher. When he heard of the plan to rob his government of Tua-Tua as a coaling station and the fact that his contract had fallen into Klinger’s hands, the commander’s brows gathered in a perplexed frown. There must be a spy on his own ship! In no other way could the paper have been stolen from his cabin. Phil, answering the commander’s summons, was soon informed of Stump’s exciting news. The commander was disappointed in seeing no surprise in Phil’s face when he heard that the Tua-Tua lease was in Klinger’s hands. “Then you have suspected that there is a spy on board this ship,” the commander exclaimed incredulously, “and have not confided your suspicions to me! I’m surprised and disappointed in you, Mr. Perry,” he added accusingly. Phil flushed guiltily. “It was really not a suspicion, sir,” he stammeringly answered, “and has only developed into a suspicion after listening to the news Stump here brings.” The lad then detailed what had occurred the night the “Talofa” and Captain Scott had entered the harbor, when he had thought he had surprised Schultz, the captain’s orderly, endeavoring to listen to the conversation between Commander Tazewell and the British commander. “His explanation, sir,” he added, “was so readily given, that I thought I had been mistaken. Then when I learned his name was Schultz, the suspicion returned; only that didn’t seem sufficient proof to accuse him of spying. When you told me earlier of the loss of the lease I again thought of Schultz, but you seemed to think the paper was only mislaid. I’m sorry, sir,” Phil stammered in embarrassment. “I see now I should have made a clean breast of it before.” “Don’t worry over that, Perry,” Commander Tazewell said kindly. “Hindsight, you know, is always better than foresight. If I had been you I doubt if I should have acted differently, so I have no right to blame you. I know you are loyal, and will always act in a way that seems to you right and straightforward.” Stump had been sent forward to seek out O’Neil. The captain had desired that the mate remain on board the “Sitka” for the present, a request which Stump was only too happy to accept. “The most serious part of this news,” Commander Tazewell exclaimed, “is that it shows the whole plot unearthed, and yet I don’t see any way now to thwart the conspirators.” “Where’s the ‘Sacramento’?” Phil asked excitedly.