“Congratulations!” exclaimed Mr. Kennedy, stepping up to Betty as she entered with her chums. “For what?” “Your boat won first prize for those of most original design. It is a beautiful silver cup.” “Oh, I’m so glad! Girls, do you hear? We won first prize in our class!” “Fine!” cried Mollie. “Oh, isn’t it nice?” said Amy. “Did we really?” asked Grace, somewhat incredulously, “You really did. I just heard the decision of the judges. Harry and I are out of it, though. We tried in the ‘wreck’ class, but the Rabbit, which was rigged out like the Flying Dutchman, beat us.” “That’s too bad,” said Mollie, sympathetically. “Never mind, we’ve had our fun,” said Mr. Stone, coming up at this point. “You girls certainly deserved the prize, if anyone did. And now I hope your dance cards aren’t filled.” They were not—but they soon were, and the evening passed most delightfully. “Who said breakfast?” yawned Grace the next morning, as she looked from her bunk down on Betty. “I ate so much lobster salad last night I don’t want anything but a glass of water on toast,” murmured Mollie. “Oh, but we had a lovely time!” and she sighed in regret at its departure. “And those young men were lovely dancers,” said Betty. “And wasn’t it nice of Will, Frank, and Allen to come?” spoke Amy, for Grace’s brother, and his two friends, had arrived most unexpectedly at the Yacht Club ball. Will had come to tell his sister certain things in regard to the missing papers, and had met a friend who belonged to the club. Naturally there was an invitation to the dance, which was quite informal in a way, and so the three boys from Deepdale had also had a good time. They were put up at the club over night. It developed that Mr. Ford had investigated certain matters in regard to Mr. Kennedy and Mr. Stone, and had learned that by no possibility could they have secured the missing papers. There would have been absolutely no interest in the documents for them. It was merely a coincidence that they had been on the scene. And this news made their explanation about the auto accident most plausible. Will had come to Rainbow Lake to tell his sister this, to relieve her mind. When he mentioned coming he had told Frank and Allen, asking them to go with him. All the boys expected to do was to spend the evening on board the _Gem_ with the girls, but when they arrived, and learned of the pageant, and Will met his club friend, the plans were changed. “Too bad Percy Falconer didn’t come,” remarked Grace, as she slipped into her dressing gown. “Don’t spoil everything,” begged Betty. “You know I detest him!” Gradually the girls got breakfast, talking of the events of the night before. “I wonder when we will get our prize?” said Betty. “I am wild to see it. I hope it’s that oddly shaped cup we so admired when we looked at the prizes.”