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 of their course, and many of them were lost. The last heard of the Hatteras was a report from the ship Minerva that she had passed within a mile of her in the neighbourhood of Fanning Island. The bark was then partly dismasted and flying signals of distress. The Minerva herself was in great difficulties, and was unable to go to her assistance. From that moment the Hatteras became a thing of mystery. It is probable that she foundered with all hands in water a mile deep. There are many islands, mostly low-lying coral reefs, in that part of the Pacific. In the faint hope that the treasure-ship might have gone on one of these, Messrs. Jacobs & Krantz arranged with a vessel that was due to pass there to explore the region thoroughly, and the captains of other ships were offered a reward for definite news. But nothing has ever been heard of the ill-fated vessel or those who were on her."

While his father was reading the old newspaper cutting Dave Hallard sat motionless, his hands gripping the arms of the chair tightly.

"That sailor told me the Hatteras they saw was near Fanning Island, Dad," he said eagerly.

Captain Hallard looked up quickly.