a concerted shout of
dismay from the boys as the sharp bow of Judson's larger, heavier craft
cut deep into the _Curlew's_ quarter.

"Now you've done it!" cried Billy Raynor.

"I--er--it was an accident," cried Donald, as the two boats swung apart,
and there was some justification for this plea, as the _Speedaway_ was
also damaged, though not badly.

"It was no accident," cried Jack, but he said no more just then. He was
too busy examining the rent in the _Curlew's_ side.

Still shivering, like a wounded creature, from the shock of the impact,
the _Curlew_, with the water pouring into the jagged rip in her side,
began slowly to sink!

CHAPTER III.

CAPTAIN SIMMS OF THE "THESPIS."

Silence, except for the inrush of water into the damaged side of the
_Curlew_, followed the collision. The three lads on the sinking craft
gazed helplessly at each other for a few seconds.

"Get away as quick as you can," whispered Donald's father to the boy who
had wrought the damage, and now looked rather scared. The _Speedaway_
swung out and her big mainsail began to fill.

"We are going to the bottom," choked out Billy, the first of the party
to recover the use of his vocal organs.

"I'm afraid there's no doubt of that," said Jack. "Donald Judson," he
shouted, raising his voice and throwing it across the appreciable
distance that now separated the two craft, "you'll pay for this."

"It was an accident, I tell you," yelled back the other lad, but in a
rather shaky voice.

"You'll do no good by abusing us," chimed in his father.

"What'll we do, Jack?" demanded Noddy, tugging at Jack's sleeve.

"Steer for the shore. There's just a chance we can make it, or at least
shallow water," was the reply.

"Doesn't look much as if we could make it," said Billy dubiously,
shaking his head and regarding the big leak ruefully, "but I suppose we
can try."

The wounded _Curlew_ began to struggle along with a motion very unlike
her usual swift, smooth glide. She staggered and reeled heavily.

"Put her on the other tack," said Jack. Noddy followed his orders with
the result that the _Curlew_ heeled over on the side opposite to that
which had been injured, and thus raised her wound above the water line.
Billy began bailing, frantically, with a bucket, at the water that had
already come in.

"Shall we help you?" cried Donald.

"No, we don't want your help," answered Jack shortly. "We'll thresh all
this out in court later on," h