If at any time during the conduct of the war by the Syndicate an American seaport should be taken by the enemy, or a British force landed on any point of the seacoast, the contract should be considered at an end, and security and payment forfeited. If any point on the northern boundary of the United States should be taken and occupied by the enemy, one million dollars of the deposited security should be forfeited for every such occupation, but the contract should continue.

It was stipulated that the land and naval forces of the United States should remain under the entire control of the Government, but should be maintained as a defensive force, and not brought into action unless any failure on the part of the Syndicate should render such action necessary.

The state of feeling in governmental circles, and the evidences of alarm and distrust which were becoming apparent in Congress and among the people, exerted an important influence in favour of the Syndicate. The Government caught at its proposition, not as if it were a straw, but as if it were a life-raft. The men who offered to relieve the executive departments of their perilous responsibilities were men of great ability, prominent positions, and vast resources, whose vast enterprises had already made them known all over the globe. Such men were not likely to jeopardize their reputations and fortunes in a case like this, unless they had well-founded reasons for believing that they would be successful. Even the largest amount stipulated to be paid them in case of success would be less than the ordinary estimates for the military and naval operations which had been anticipated; and in case of failure, the amount forfeited would go far to repair the losses which might be sustained by the citizens of the various States.

At all events, should the Syndicate be allowed to take immediate control of the war, there would be time to put the army and navy, especially the latter, in better condition to carry on the contest in case of the failure of the Syndicate. Organization and construction might still go on, and, should it be necessary, the army and navy could step into the contest fresh and well prepared.

All branches of the Government united in accepting the offer of the Syndicate. The contract was signed, and the world waited to see what would happen next.

The influence which for years had been exerted by the interests controlled by the men composing the Syndicate, had its effect in producing a popular confidence in the power of the members of the Syndicate to conduct a war as successfully as they had conducted other gigantic enterprises. Therefore, although predictions of disaster came from many quarters, the American public appeared willing to wait with but moderate impatience for the result of this novel undertaking.

The Government now proceeded to mass troops at important points on the northern frontier; forts were supplied with men and armaments, all coast defences were put in the best possible condition, the navy was stationed at important ports, and work at the ship- yards went on. But without reference to all this, the work of the Syndicate immediately began.

This body of men were of various politics and of various pursuits in life. But politics were no more regarded in the work they had undertaken than they would have been in the purchase of land or of railroad iron. No manifestoes of motives and intentions were issued to the public. The Syndicate simply went to work. There could be no doubt that early success would be a direct profit to it, but there could also be no doubt that its success would be a vast benefit and profit, not only to the business enterprises in which these men were severally engaged, but to the business of the whole country. To save the United States from a dragging war, and to save themselves from the effects of it, were the prompting motives for the formation of the Syndicate.

Without hesitation, the Syndicate determined that the war in which it was about to engage should be one of defence by means of offence. Such a war must necessarily be quick and effective; and with all the force of their fortunes, their minds, and their bodies, its members went to work to wage this war quickly and effectively.

All known inventions and improvements in the art of war had been thoroughly considered by the Syndicate, and by the eminent specialists whom it had enlisted in its service. Certain recently perfected engines of war, novel in nature, were the exclusive property of the Syndicate. It was known, or surmised, in certain quarters that the Syndicate had secured possession of important warlike inventions; but what they were and how they acted was a secret carefully guarded and protected.

The first step of the Syndicate was to purchase from the United States Government ten war-vessels. These were of medium size and in good condition, but they were of an old-fashioned type, and it had not been considered expedient to put them in commission. This action caused surprise and disappointment in many quarters. It had been supposed that the Syndicate, through its agents scattered all over the world, would immediately acquire, by purchase or lease, a fleet of fine ironclads culled from various maritime powers. But the Syndicate having no intention of involving, or attempting to involve, other countries in this quarrel, paid no attention to public opinion, and went to work in its own way.

Its vessels, eight of which were on the Atlantic coast and two on the Pacific, were rapidly prepared for the peculiar service in which they were to be engaged. The resources of the Syndicate were great, and in a very short time several of their vessels, already heavily plated with steel, were furnished with an additional outside armour, formed of strips of elastic steel, each reaching from the gunwales nearly to the surface of the water. These strips, about a foot wide, and placed an inch or two apart, were each backed by several powerful air-buffers, so that a ball striking one or more of them would be deprived of much of its momentum. The experiments upon the steel spring and buffers adopted by the Syndicate showed that the force of the heaviest cannonading was almost deadened by the powerful elasticity of this armour.

The armament of each vessel consisted of but one gun, of large calibre, placed on the forward deck, and protected by a bomb-proof covering. Each vessel was manned by a captain and crew from the merchant service, from whom no warlike duties were expected. The fighting operations were in charge of a small body of men, composed of two or three scientific specialists, and some practical gunners and their assistants. A few bomb-proof canopies and a curved steel deck completed the defences of the vessel.

Besides equipping this little navy, the Syndicate set about the construction of certain sea-going vessels of an extraordinary kind. So great were the facilities at its command, and so thorough and complete its methods, that ten or a dozen ship-yards and foundries were set to work simultaneously to build one of these ships. In a marvellously short time the Syndicate possessed several of them ready for action.

These vessels became technically known as "crabs." They were not large, and the only part of them which projected above the water was the middle of an elliptical deck, slightly convex, and heavily mailed with ribs of steel. These vessels were fitted with electric engines of extraordinary power, and were capable of great speed. At their bows, fully protected by the overhanging deck, was the machinery by which their peculiar work was to be accomplished. The Syndicate intended to confine itself to marine operations, and for the present it was contented with these two classes of vessels.

The armament for each of the large vessels, as has been said before, consisted of a single gun of long range, and the ammunition was confined entirely to a new style of projectile, which had never yet been used in warfare. The material and construction of this projectile were known only to three members of the Syndicate, who had invented and perfected it, and it was on account of their possession of this secret that they had been invited to join that body.

This projectile was not, in the ordinary sense of the word, an explosive, and was named by its inventors, "The Instantaneous Motor." It was discharged from an ordinary cannon, but no gunpowder or other explosive compound was used to propel it. The bomb possessed, in itself the necessary power of propulsion, and the gun was used merely to give it the proper direction.

These bombs were cylindrical in form, and pointed at the outer end. They were filled with hundreds of small tubes, each radiating outward from a central line. Those in the middle third of the bomb pointed directly outward, while those in its front portion were inclined forward at a slight angle, and those in the rear portion backward at the same angle. One tube at the end of the bomb, and pointing directly backward, furnished the motive power.

Each of these tubes could exert a force sufficient to move an ordinary train of passenger cars one mile, and this power could be exerted instantaneously, so that the difference in time in the starting of a train at one end of the mile and its arrival at the other would not be appreciable. The difference in concussionary force between a train moving at the rate of a mile in two minutes, or even one minute, and another train which moves a mile in an instant, can easily be imagined.

In these bombs, those tubes which might direct their powers downward or laterally upon the earth were capable of instantaneously propelling every portion of solid ground or rock to a distance of two or three hundred yards, while the particles of objects on the surface of the earth were instantaneously removed to a far greater distance. The tube which propelled the bomb was of a force graduated according to circumstances, and it would carry a bomb to as great a distance as accurate observation for purposes of aim could be made. Its force was brought into action while in the cannon by means of electricity while the same effect was produced in the other tubes by the concussion of the steel head against the object aimed at.

What gave the tubes their power was the jealously guarded secret.

The method of aiming was as novel as the bomb itself. In this process nothing depended on the eyesight of the gunner; the personal equation was entirely eliminated. The gun was so mounted that its direction was accurately indicated by graduated scales; there was an instrument which was acted upon by the dip, rise, or roll of the vessel, and which showed at any moment the position of the gun with reference to the plane of the sea-surface.

Before the discharge of the cannon an observation was taken by one of the scientific men, which accurately determined the distance to the object to be aimed at, and reference to a carefully prepared mathematical table showed to what points on the graduated scales the gun should be adjusted, and the instant that the that the muzzle of the cannon was in the position that it was when the observation was taken, a button was touched and the bomb was instantaneously placed on the spot aimed at. The exactness with which the propelling force of the bomb could be determined was an important factor in this method of aiming.