"Wounded! This is serious. I am in a hole." The thoughts came to him like a flash, while the urgency of the situation seemed to help to clear his eyes. He could now see the villain who had attacked him quite plainly, while, owing to his position close to the wall of the dwelling, his own figure was in the dusk. And it was that fact alone which saved his life; for had the rascal standing so close to him been sure of his bearings that formidable blade would have descended again. Jim caught the glint of the lamplight on it, and, stung by the pain in his shoulder and by the danger of his position, he struck out fiercely with his clenched fist, and as fortune would have it caught the rascal neatly beneath the chin. Crash! The man staggered backwards, breathing deeply, and a second later cannoned into one of his comrades who was hurrying forward to support him. He gave a low growl of rage, pulled himself together, and flung himself on Jim again furiously. "Dog of a spy! You struck me. Police or not, I will kill you." There was a snarl in his tones, while the man's whole person bristled with anger. But Jaime de Oteros was not the ruffian to miss a chance, or spoil his own opportunities, because he was in a passion. Beneath his smouldering rage the rascal kept a level head, and, watching Jim as well as the darkness would allow him, threw himself forward with startling swiftness. Bang! Crash! That terrible knife blade just missed its mark, and passing over our hero's shoulder buried its point deeply in the woodwork of the hut, so deeply, in fact, that Jaime had to pull hard to release it. That effort again helped Jim; indeed it gave him an opportunity he was quick to pounce upon. For out shot his right fist again, and, striking square between the eyes, it sent Jaime hurtling backwards. "Keep off! I warn you that any further violence will lead to severe punishment." Jim gasped the words, for the suddenness of the attack had taken his breath away. But he was by no means cowed, and, being one of those sharp, shrewd lads of which America is so justly proud, he promptly decided to make use of the few seconds respite allowed by Jaime's downfall. It was a case where force could not greatly avail him, he told himself, as he stood at bay before the desperadoes, his back close to the wall; but bluff might help him. "I warn you," he said again. "Drop your knives and stand here against the hut with your arms up. If not, I'll whistle to my men to shoot. Yes," he said sternly, "my men, you are surrounded. Jaime de Oteros, the game is up."