About a third of a mile from his yard Mr. Farnum came to the spot where the lumber was being unloaded.  That was a hitherto vacant piece of land located at the edge of a small deepwater cove.  Mr. Melville and Don were there, and also a gang of workmen.  Carpenters were opening tool chests, as though preparing to go to work.

“Hm!” mused Jacob Farnum.  Turning up a side street, he drove, by a roundabout way, back to his yard.  Thereafter he took pains to keep himself informed of the Melville doings.

By night the foundations of a shipbuilder’s shed had been laid by a large force of carpenters.  Another gang of carpenters had gone to work building a fence as rapidly as laborers could set up the poles.  By the night of the following day the fence was completed, and the shed, so far as outward appearances went, was completed.

And now, though George Melville and his son, preserved an air of great secrecy, the news leaked out that a new boatyard was added to the industries of Dunhaven, coupled with the further information that Mr. Melville was engaged in the manufacture of submarine torpedo boats.

Both Farnum and Pollard looked somewhat grave when this knowledge was first brought to them by Eph Somers, who had a great knack for picking up local news.  However, the young builder was quick to cheer up.

“So we’re to have a rival yard, and the ‘Pollard’ is to have a rival?” said Mr. Farnum.  “Competition ought to stir us forward to the very best that is in us.  Somers, ask Captain Benson and Hastings to come here.  We’ll talk this matter over.”

Twenty minutes later the few devoted friends of the “Pollard” boat were gathered around Mr. Farnum’s desk.

“Unless I’m in great error,” said the young boatbuilder, “we’re in for a lively rumpus, now.  Melville is aroused over our refusal to let him in to this enterprise, and he’s starting an opposition.  He can command a great deal of money, and I understand that he has a good many influential friends in Washington.  If he can carry on the most successful rivalry, he may do us a great deal of harm.  For instance, if he can build so fine a boat that he can put ours in the shadow.  In fact, while I don’t mean to be a quitter or a skulker, I’ll admit that Melville may possibly be able to dig a hole and drop us into it.  If he produces a type of boat that goes far ahead of ours, then the Government is likely to buy his, overlook ours and leave me stranded financially.  About all I’m worth is tied up in the present ‘Pollard’ and in the new torpedo submarine that I’m now building.”

“He can’t invent or build a finer submarine than the ‘Pollard,’” declared Captain Jack, with conviction.

“Nor get as fine a crew to handle his craft,” added David Pollard.

“Don’t be too sure of that,” warned Jack, Soberly.  “I think we fellows have done fairly well with your boat, up to date.  But suppose Mr. Melville should be able to get a lot of experienced submarine men, and even, perhaps, an officer, from the United States Navy.  We boys could hardly beat such a combination as that.”