s believed to be
fabulously rich in emeralds."

"That is the way it looked to me," the lieutenant said.

"I began work along that line," continued Ned, "for the news that Mr. Shaw
was interested in emerald mines, and his refusal to reveal the contents of
the papers he had secured, led me to the opinion that he had been
approached by his partners with a proposition to destroy the Gatun dam,
that he had their proposals in writing, and that he had refused to become
a party to such an outrage."

"Then why didn't he tell us who the men were?" demanded Gordon.

"Because," was the reply, "he did not think his partners, Mr. Harvey
Chester and Col. Van Ellis, would go to the extremity proposed. He thought
they would change their minds when the enormity of the crime was set
before them. In fact, he suspected from the first that they were being
urged on by others having private ends to gain by the destruction of the
dam. Besides, he thought himself capable of handling the situation alone.
Is that true, Mr. Shaw?"

"All true," was the reply, "but I don't see how you found out what was in
my mind," he added, with a laugh.

"It was all very clear to me, in time," was the reply. "Unless I am very
much mistaken, you, Mr. Shaw, fearful that the enemies of the canal scheme
might act too quickly, gave the information to the government which led to
Lieutenant Gordon being put on the case. Is that right?"

"Yes," was the reply, "that is right, but how--"

"All in good time," Ned went on. "Now, the fact that you had warned the
officers of the government became known to your associates in the emerald
business. That is, it became known to the men who were drawing the
associates into this crime. It was then necessary for them to get the
papers they had given to you, the maps and plans of the best points of
attack. The papers mentioned names, and would have convicted every one of
them of treason."

"Where did you get a glimpse of the papers?" asked Mr. Shaw.

"I have never seen them," was the reply, "but what took place shows what
they contained. When you left the Isthmus, Pedro, real name Pedrarias, was
induced by some of the conspirators to go with you as your servant. His
real duty in your house was to steal the papers before you turned them
over to the government."

"I had no intention of doing that," the editor said.

"But the conspirators did not know that," Ned went on. "Now, while Pedro
went into your employ for the purpose