It was on the morning of Aug. 5, when the Matunga was nearing the coast of the territory formerly known as German New Guinea, that she fell in with the Wolf, which was mistaken for an ordinary tramp steamer, as the two vessels ran parallel to each other for about two miles. Then the Wolf suddenly revealed her true character by running up the German flag, dropping a portion of her forward bulwarks, exposing the muzzles of her guns, and firing a shot across the bows of the Matunga. At the same time the Wolf sent a seaplane to circle over the Matunga at a low altitude for the obvious purpose of ascertaining whether the latter was armed. Apparently satisfied with the seaplane's report, the German Captain sent a prize crew, armed with bayonets and pistols, to take possession of the British ship. Before their arrival, however, all the Matunga's code books, log books, and other papers were thrown overboard. During the time the prize crew, all of whom spoke English well, were overhauling the Matunga, it was learned that the Germans had been lying in wait for her for five days, as they had somehow learned that she was carrying 500 tons of coal, which they needed badly, and that the German wireless operator had been following her course from the time of her departure from Sydney toward the end of July. The two ships, now both under German command, proceeded together to a very secluded natural harbor on the north coast of Dutch New Guinea, the entrance to which was watched by two German guard boats, while a wireless plant was set up on a neighboring hill and the Wolf's seaplane patrolled the sea around for about 100 miles on the lookout for any threatened danger. The two ships remained in the Dutch harbor for nearly a fortnight, during which time the Wolf was careened and her hull scraped of barnacles and weeds in the most thorough and methodical manner, after which the coal was transferred from the Matunga's bunkers. The latter vessel was then taken ten miles out to sea, where everything lying loose was thrown into the hold and the hatches battened down to obviate the possibility of any floating wreckage remaining after she was sunk. Bombs were then placed on board and exploded, and the Matunga went down in five or six minutes without leaving a trace.