ad put to sea with her course set
towards the ships on the horizon, which were enveloped in clouds of
black smoke.

"There's nothing for us to do," said Spencer despairingly, "but stand
here helplessly and look on. There isn't a single torpedo-boat, not a
single submarine here! For Heaven's sake, Ben, tell us what's happening
out there!"

"It's awful!" answered Wood; "two of the transport-ships are in flames,
two seem to have been sunk, and some of those further back have listed
badly. The _Olympia_ is heading straight for the enemy, but she seems to
be damaged and is burning aft. There are two more cruisers in the
background, but they are hidden by the smoke from the burning steamers;
I can't see them any more."

"Where on earth have the Japanese ships come from? I thought their whole
fleet was stationed in the Pacific. Not one of their ships has ever come
around Cape Horn or through the Straits of Magellan; if they had, our
cruisers off the Argentine coast would have seen them. And besides it
would be utter madness to send just two battleships to the Atlantic. But
where else can they have come from?"

"There's no use asking where they come from," cried Wood excitedly, "the
chief point is, they're there!"

He gave up his place at the telescope to his comrade, thought for a
moment, and then went to the telephone.

His orders into town were short and decisive: "Send all the tugs out to
sea immediately. Have them hoist the ambulance-flag and try to rescue
the men of the transports."

"And you, Spencer," he continued, "take the cutter and hurry over to the
transport-steamers in the roads and have them hoist the Red Cross flag
and get to sea as quickly as possible to help in the work of rescue.
That's the only thing left for us to do. I'll take command of the
_President Cleveland_ and you take charge of the Swedish steamer
_Olsen_. And now let's get to work! Signor Alvares can play the role of
idle onlooker better than we can. Our place is out there!"

Both officers rushed down the stairs and jumped into the cutter, which
steamed off at full speed and took them to their ships.

Three-quarters of an hour later the tug mentioned in the beginning of
the chapter appeared again at the entrance to the lagoon. Several men
could be seen in the stern holding a large white sheet upon which a man
was painting a large red cross, and when the symbol of human love and
assistance was finished, the sheet was hoisted at the flags