"I think the party on the mountainside is the Thompson party," announced Grace, who had been observing through her binoculars. "I am positive that I recognize Jed." "Then the Spurgeons are on the run. Look at that, will you!" cried Lieutenant Wingate. The supposed Spurgeons were now dashing down the valley, here and there making a stand and shooting up at their enemies, who were pouring down a hot fire on them. The shooting soon began to die down, with an occasional shot from the Thompson feudists, probably long-range shots at the fleeing figures of the Spurgeons. "All over," announced Hippy. "We can now safely go out. I am going over to see what the camp looks like." The girls said they too would go. They did not believe that their presence had been discovered by the Thompson fighters, but in this, however, they were mistaken. Keen eyes had espied them watching the battle from the mouth of the cave, and even then some of the Thompson party was on its way to look the Overlanders over. Washington Washington, who, during the firing on the cave, had remained flat on his stomach on the floor, a finger in either ear, trembling with fright, now assured that he had nothing more to fear, darted on ahead, eager to get to his mule. He gained the camp a few minutes ahead of the Overland party. They saw him coming back, wide-eyed, his feet barely touching the ground as he ran. "What is it, Laundry?" called Hippy. Washington's lips refused to frame the words that he was trying to utter. The Overlanders started forward at a run, bringing up abruptly as they gained their camping place. Not a vestige of it, save the ashes of their cook fire, remained. Everything was gone. "De hosses!" exploded Washington. "They're gone!" cried Emma Dean, who, following Washington's warning, had run to the tethering place. They were not all "gone," however. The Overland Riders found that one pony had been, shot through the head, and that the mule had shared a like fate. The other animals had disappeared, probably driven away by Bat Spurgeon and his gang of ruffians. "Howd', folks," greeted Jed Thompson, fairly bursting into the camp. "You-all don't know whether that critter Spurgeon has been heyeh, does ye?" "Just cast your eagle eyes about and see if you don't think it looks as if somebody had been here, old top," answered Hippy Wingate, taking in the camp and the tethering ground with a wave of the hand. "Our ponies are gone. Now we've got to walk all the way home," wailed Emma. "'Con-centrate,' little one," advised Hippy. "Never mind 'bout the hosses. We-uns'll fix ye up. Spurgeon and Lum Bates got er-way. They come this-a-way an' Ah reckon they're hidin' in a cave. Shore they ain't in that place where you was?" demanded Jed. "If ye ain't sartin, better look an' see. We'll be goin' through t'other holes right smart. Mah men is doin' it now!" "Bates?" wondered Hippy.