Now in these subterranean caverns lived a strange race of beings, called by some gnomes, by some kobolds, by some goblins. There was a legend current in the country that at one time they lived above ground, and were very like other people. But for some reason or other, concerning which there were different legendary theories, the king had laid what they thought too severe taxes upon them, or had required observances of them they did not like, or had begun to treat them with more severity in some way or other, and impose stricter laws; and the consequence was that they had all disappeared from the face of the country. According to the legend, however, instead of going to some other country, they had all taken refuge in the subterranean caverns, whence they never came out but at night, and then seldom showed themselves in any numbers, and never to many people at once. It was only in the least frequented and most difficult parts of the mountains that they were said to gather even at night in the open air. Those who had caught sight of any of them said that they had greatly altered in the course of generations; and no wonder, seeing they lived away from the sun, in cold and wet and dark places. They were now, not ordinarily ugly, but either absolutely hideous, or ludicrously grotesque both in face and form. There was no invention, they said, of the most lawless imagination expressed by pen or pencil, that could surpass the extravagance of their appearance. And as they grew mis-shapen in body, they had grown in knowledge and cleverness, and now were able to do things no mortal could see the possibility of. But as they grew in cunning, they grew in mischief, and their great delight was in every way they could think of to annoy the people who lived in the open-air-story above them. They had enough of affection left for each other, to preserve them from being absolutely cruel for cruelty's sake to those that came in their way; but still they so heartily cherished the ancestral grudge against those who occupied their former possession, and especially against the descendants of the king who had caused their expulsion, that they sought every opportunity of tormenting them in ways that were as odd as their inventors; and although dwarfed and mis-shapen, they had strength equal to their cunning. In the process of time they had got a king, and a government of their own, whose chief business, beyond their own simple affairs, was to devise trouble for their neighbors. It will now be pretty evident why the little princess had never seen the sky at night. They were much too afraid of the goblins to let her out of the house then, even in company with ever so many attendants; and they had good reason, as we shall see by-and-by. CHAPTER II THE PRINCESS LOSES HERSELF I HAVE said the Princess Irene was about eight years old when my story begins. And this is how it begins.