We were sitting in the lobby of the Willard, Bill Quinn and I, watching the constant stream of politicians, pretty women, and petty office seekers who drift constantly through the heart of Washington.

Suddenly, under his breath, I heard Quinn mutter, "Hello!" and, following his eyes, I saw a trim, dapper, almost effeminate-looking chap of about twenty-five strolling through Peacock Alley as if he didn't have a care in the world.

We were sitting in the lobby of the Willard, Bill Quinn and I, watching the constant stream of politicians, pretty women, and petty office seekers who drift constantly through the heart of Washington.

Suddenly, under his breath, I heard Quinn mutter, "Hello!" and, following his eyes, I saw a trim, dapper, almost effeminate-looking chap of about twenty-five strolling through Peacock Alley as if he didn't have a care in the world.

"Jimmy," said the Chief, "somebody on this side is giving those damn Huns a whole lot of information that they haven't any business getting. You know about those boats they've sunk already, of course. They're only small fry. What they're laying for is a transport, another Tuscania that they can stab in the dark and make their getaway. The point that's worrying us is that the U-boats must be getting their information from some one over here. The sinking of the Carolina proves that. No submarine, operating on general cruising orders, could possibly have known when that ship was due or what course she was going to take. Every precaution was taken at San Juan to keep her sailing a secret, but of course you can't hide every detail of that kind. She got out. Some one saw her, wired the information up the coast here and the man we've got to nab tipped the U-boat off.

Details of the sinking of the Carolina were included, among them the fact that the U-37 had been waiting directly in the path of the steamer, though the latter was using a course entirely different from the one the New York and Porto Rico S. S. Company's boats generally took. The evidence of a number of passengers was that the submarine didn't appear a bit surprised at the size of her prey, but went about the whole affair in a businesslike manner. The meat of the report was contained in the final paragraph, stating that one of the German officers had boasted that they "would get a lot more ships  in the same way," adding, "Don't worry—we'll be notified when they are going to sail."

Callahan knew that the four principal ports of embarkation for troops—Boston, New York, Norfolk, and Charleston—were shrouded in a mantle of secrecy which it was almost impossible to penetrate. Some months before, when he had been working on the case which grew out of the disappearance of the plans of the battleship Pennsylvania, he had had occasion to make a number of guarded inquiries in naval circles in New York, and he recalled that it had been necessary not only to show his badge, but to submit to the most searching scrutiny before he was allowed to see the men he wished to reach. He therefore felt certain that no outsider could have dug up the specific information in the short space of time at their disposal.