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 CHAPTER 8
CAPITAL EXPENDITURE DECISIONS

Questions, Exercises, Problems, and Cases: Answers and Solutions

8.1 See text or glossary at the end of the book.

8.2 The first: Which projects should be undertaken?

The second: Once a project is to be undertaken, how shall the funds

required be raised?

8.3 Amounts of future cash flows. But, of course, examples can be constructed
where any of the three is the most critical.

8.4 1. The "pure" rate of interest representing the productivity of capital over
the term of the loan.

2. A risk factor reflecting the riskiness of the project.

3. The rate of inflation anticipated over the term of the loan.

8.5 The statement is too restrictive. For ordinary business financings where
the lender expects the entire firm to service debt, the statement is correct.
Occasionally, however, loans are arranged where debt service payments
come only from cash generated by the asset acquired with the borrowings.
In that case, the two decisions can be made together.

8.6 The statement is generally true. Investments should be made that are
consistent with the company’s strategy. Sometimes a deal comes along
that is too good to pass up. In such a case, a company might depart from
its strategic plan (or revise the plan to accommodate the investment).

8.7 —Audits identify what estimates were wrong so planners can avoid making
the same mistakes in the future.

—Audits can be used to identify good planners.

—Audits keep planners from being tempted to inflate estimates of benefits.

8-1 Solutions
8.8 If the cost of capital used to discount future cash flows incorporates an
inflation premium, then the projected cash flows should be considered in
light of that assumed inflation. It need not be true that specific cash flows
will increase by the same percentage as the rate of the projected general
inflation. Still, it makes sense to consider the effect of general price
increases in the economy on the cash flows specific to a given project. Note
the mathematical equivalence of reducing the cost of capital or increasing
the cash flows, so long as the rate of increase in cash flows is the same each
period.

8.9 Although there is no contractual obligation, shareholders do expect a return

or they will invest elsewhere. If a company uses an opportunity cost of
capital computed by setting the cost of stockholders' equity to zero, they
will undertake some projects that are less profitable than they should.
Common stockholders will want to sell their stock which will drive down the
market price of the stock. Management's responsibility is to maximize the
wealth of shareholders.

8.10 Strategic move decisions require the highest level of approvals in the
company—the Board of Directors. Replacement decisions are made at
various levels of the organization, depending on the amount of the
investment. Decisions to replace tools and equipment may be made as low
as the department head level.

8.11 Increase the quoted cost of capital from 10 percent to 13.3 [= (1.10 X 1.03)
– 1] percent per year.

8.12 The executive is favoring the short run at the expense of the long run.

8.13 The larger the rate of anticipated inflation, the larger will be the rate of
interest on loans made in that economy. Thus, as the rate of anticipated
inflation increases, the rate of return on alternative investments faced by
the firm will be no smaller, and will, in general, be larger. It is wrong to
answer in terms of the cost of raising the firm's own equity funds. The cost
of equity funds influences some measurements of the cost of capital,
whereas the structure of alternative opportunities facing the firm
determines its cost of capital.

8.14 The query ignores the part of the definition that says the alternative
investment project be of average risk. If the cash flows related to all
investment projects were as certain as debt payments, then the cost of
capital would be the debt rate. Usually, however, a firm's projects have
more uncertainty as to outcomes than do debt payments.

Solutions 8-2
8.15 We think the answer lies in the ease of comparing rates, which after all are
returns per year per dollar of investment, with the apparent difficulty of
comparing net present values, which are absolute dollar amounts,
apparently incommensurate across projects of different sizes. We all
understand what a return of "10 percent per year" means, but we may
have some difficulty in comprehending the meaning of "a net present value
of $8,000."

8.16 (Computing net present value.)

a. Net Present Value = ($15,000) + $1,000(16.66306)
= $1,663.

b. Net Present Value = ($100,000) + $250,000(0.45811)

= $14,528.

8.17 (Computing net present value.)

(1) + (2) + (3) + (4) = NPV
Year 1 Year 2 Year 3
Cash Cash Cash
Year 0 Inflows Inflows Inflows
Cash (Outflows) (Outflows) (Outflows)
Inflows Discounted Discounted Discounted
Project (Outflows) (X .90909) (X .82645) (X .75131)
A $ (10,000) $ 3,636 $ 3,305 $ 3,005 $ (54)
B (10,000) 5,455 3,305 1,503 263
C (10,000) 1,818 3,305 4,508 (369)
D (10,000) 10,909 0 0 909
E (10,000) 0 0 9,016 (984)
Rank from best to worst; D, B, A, C, E

8.18 (Computing net present value.)

a.
Present
Value Discounted Cash Flows
Year Factor Project A Project B Project C
Project D
0 1.00000 $ (5,000,000) $ (5,000,000) $ (5,000,000) $ (5,000,000)
1 .86957 1,739,140 3,478,280 -0- 869,570
2 .75614 1,512,280 1,512,280 -0- 1,890,350
3 .65752 1,315,040 1,315,040 -0- 1,972,560
4 .57175 1,143,500 571,750 -0- 1,429,375
5 .49718 994,360 497,180 4,971,800 497,180
$ 1,704,320 $ 2,374,530 $ (28,200) $ 1,659,035

8-3 Solutions
8.18 continued.

b. Hammersmith should take Project B, which has the largest net present
value. Even though all four projects have the same total undiscounted
total cash inflow streams, that is, $10,000,000, Project B is superior in
that the bulk of the cash returns comes in the earlier years.

8.19 (Gators, Inc.; computing net present value.)

a. b.
Net Present Present
Year Cash Flow Factor Value Factor Value
0 $ (2,000,000) 1.00000 $ (2,000,000) 1.00000 $ (2,000,000)
1 300,000 .89286 267,858 .83333 249,999
2 400,000 .79719 318,876 .69444 277,776
3 800,000 .71178 569,424 .57870 462,960
4 800,000 .63552 508,416 .48225 385,800
5 600,000 .56743 340,458 .40188 241,128
$ 5,032 $ (382,337)

8.20 (Megatech; computing net present value.)

Net Present Value Present

Year Cash Flow Factor Value
(1) (2) (3) (4)
0 $ (200,000) 1.00000 $ (200,000)
1 (150,000) .90909 (136,364)
2 (100,000) .82645 (82,645)
3 90,000 .75131 67,618
4 90,000 .68301 61,471
5 90,000 .62092 55,883
6 90,000 .56447 50,802
7 90,000 .51316 46,184
8 90,000 .46651 41,986
$ (95,065)

Solutions 8-4
8.21 (Southern Rail Lines; deriving cash flows and computing net present value.)

End 12% Present Buy New Machine Keep Old Machine Differential (New-Old)
of Value Discount Net Cash Inflow Present Value Net Cash Inflow Present Value Cash Inflow Present Value
Year Factor (Outflow) Cash Flows (Outflow) Cash Flows (Outflow) of Cash Flows
0 1.00000 $ (20,500)a $ (20,500) $ (20,500) $ (20,500)
1 .89286 3,000b 2,679 $ (1,200) $ (1,071) 4,200 3,750
2 .79719 3,000 2,392 (6,200) (4,943) 9,200 7,334
3 .71178 3,000 2,135 (1,200) (854) 4,200 2,989
4 .63552 (7,000)c (4,449) (1,200) (763) (5,800) (3,686)
5 .56743 3,000 1,702 (1,200) (681) 4,200 2,383
6 .50663 3,000 1,520 (1,200) (608) 4,200 2,128
7 .45235 8,000d 3,619 (1,200) (543) 9,200 4,162
$ (4,500) $ (10,902) $ (13,400) $ (9,463) $ 8,900 $ (1,440)

a$20,500 outflow = $23,000 new machine cost (outflow) – $2,500 for sale of old machine (inflow).

b$3,000 = $4,000 labor cost saved less operating cost of $1,000.

c $(7,000) = $3,000 minus $10,000 overhaul costs.

d$8,000 = $3,000 + $5,000 proceeds from sale of machine.

The new machine should not be purchased because the present value of the costs incurred are more than those that would be incurred
if the old machine were kept.

8-5 Solutions
8.22 (Magee Company; observing the effects of using different discount rates.)

Present
End Present Value Value at
of Year Cash Flow Factor at 12% 12% = (2) X (3)
(1) (2) (3) (4)

0 $ (60,000) 1.00000 $ (60,000)

1 33,300 .89286 29,732
2 46,210 .79719 36,838
3 42,680 .71178 30,379
4 64,850 .63552 41,213
5 115,920 .56743 65,776
Total ................................................................................................... $ 143,938

Present Value of All Cash Flows from Sale of Old

Equipment and Purchase of New Equipment

Operating Cash Flow (from above).................................................... $ 143,938

Net Cash Outlay for Equipment (= $140,000 – $18,000)............. (122,000)
Salvage Proceeds End of Year 5: $4,406 X .56743......................... 2,500
Taxes on Salvage End of Year 6: $4,406 X .40 X .50663............... (893)
Net Present Value.......................................................................... $ 23,545

Present Value of Outright Sale

Sale Proceeds.......................................................................................... $18,000

Given a cost of capital of 12 percent, the net present value of buying the
new equipment is now higher than the net present value of selling the old
equipment outright. Thus, Magee Company would be more inclined to buy
the new equipment.

8.23 (Nugget Co.; net present value and mutually exclusive projects.)

a. Compute net present values of cash flows.

End Discount Cash Flows Present Value of Cash

of Factors Flows
Year at 12% AMD NEC AMD NEC
0 1.00000 $ (1,000,000) $ (1,500,000) $ (1,000,000) $ (1,500,000)
1 0.89286 400,000 800,000 357,144 714,288
2 0.79719 400,000 600,000 318,876 478,314
3 0.71178 300,000 500,000 213,534 355,890
4 0.63552 200,000 0 127,104 0
$ 16,658 $ 48,492

Solutions 8-6
8.23 continued.

b. Internal rates of return:

AMD = 12.9% NEC = 14.0%

c. Conclusion

Net present value of cash flows discounted at 12 percent is greater for

the NEC project than for the AMD project.

Choose the NEC project because it has higher net present value of
cash flows and because the net present value is positive. Also, the
internal rate of return is higher for NEC.

8.24 (Larson Company; net present value and mutually exclusive projects.)

Present Value
End Discount Cash Flows of Cash Flows
of Factors In $000's In $000's
Year at 12% M N M N
0 1.00000 $(500) $(450) $(500.0) $(450.0)
1 .89286 175 477 156.3 425.9
2 .79719 287.5 195 229.2 155.5
3 .71178 400 60 284.7 42.7
$ 170.2 $ 174.1

Larson should choose Project N because it has the highest net present
value.

8.25 (Computing internal rate of return.)

a. 3% e. 17%
b. 10% f. 9%
c. 14% g. 13%
d. 18%

8.26 (Computing internal rate of return.)

a. 5%.
b. 6%.
c. 8%.
d. 12%.
e. 15%.

8-7 Solutions
8.27 (Working backwards with net present value method.)

a. Present value factor for an annuity in arrears of $1 for five years

discounted at 10 percent per year is 3.79079.

The present value of the cash inflows is $9,477 = $2,500 X 3.79079.

The project has a negative net present value of

–$10,000 + $9,477 = ($523)

and should be rejected.

b. If the project is to be acceptable, then its net present value must

increase by at least $523. If cash flows five years hence are to be
changed by x, then

x(1.10)-5 = $523
x = $523 X (1.10)5
= $523 X 1.61051
= $842

c. Using the same reasoning as above and solving for y:

y(1.10)-5 = ($523 + $200)

y = $723 X (1.10)5
= $723 X 1.61051
= $1,164

8.28 (Carlo Company; computing internal rate of return.)

Internal Rate of Return:

(a) 16.94% (c) 19.43%
(b) 5.47% (d) 10.45%

Solutions 8-8
8.29 (Oceana, Inc.; deriving cash flows and computing net present value.)

a. Expenditures/Period 1 2 3 4 5 6 7 8 9 10
Revenues.............................................................. $ 50,000 $ 60,000 $ 71,500 $ 86,250 $ 120,000 $ 150,000 $ 122,000 $ 109,800 $ 93,750 $ 94,500
Variable Cost of Goods Sold............................... 30,000 37,200 42,250 48,750 66,000 85,000 70,000 63,000 52,500 52,500*
Selling Expenses................................................. 10,000 12,000 13,000 15,000 20,000 25,000 20,000 18,000 15,000 15,000

(1) Income before Taxes and

Depreciation............................................. $ 10,000 $ 10,800 $ 16,250 $ 22,500 $ 34,000 $ 40,000 $ 32,000 $ 28,800 $ 26,250 $ 27,000
Depreciation (ACRS)................................... 20,000 32,000 19,200 11,500 11,500 5,800
Taxable Income............................................ $ (10,000) $ (21,200) $ (2,950) $ 11,000 $ 22,500 $ 34,200 $ 32,000 $ 28,800 $ 26,250 $ 27,000

(2) Income Tax Increase (Decrease) in

Cash (40% rate)........................................ $ (4,000) $ (8,480) $ (1,180) $ 4,400 $ 9,000 $ 13,680 $ 12,800 $ 11,520 $ 10,500 $ 10,800
Cash Flow from Operations (1) – (2)......... $ 14,000 $ 19,280 $ 17,430 $ 18,100 $ 25,000 $ 26,320 $ 19,200 $ 17,280 $ 15,750 $ 16,200
Inventory Adjustment** ............................. (15,000) 15,000

(3) Net Cash Flow.............................................. $ (1,000) $ 19,280 $ 17,430 $ 18,100 $ 25,000 $ 26,320 $ 19,200 $ 17,280 $ 15,750 $ 31,200
Present Value Factors (9%) ........................ X .91743 X .84168 X .77218 X .70843 X .64993 X .59627 X .54708 X .50185 X .46045 X .42241
Discounted Cash Flows............................... $ (917) $ 16,228 $ 13,459 $ 12,823 $ 16,248 $ 15,694 $ 10,504 $ 8,672 $ 7,252 $ 13,179

(4) Total Present Value of Net Cash

Flows......................................................... $ 113,138

(5) Cash Outflow—Investment........................ $ (100,000)

*Cost of goods sold (LIFO) in Year 10 consists of 10,000 units produced in Year 10 ($37,500) plus cost of 5,000 units produced in Year 1 ($15,000) and
carried forward as inventory until sold in Year 10.

**Adjustment for extra cash expended on production in Year 1 (5,000 units X $3.00) and not expended in Year 10.

b. Net Present Value (4) – (5) ................................ $ 13,138.

8-9 Solutions
8.30 (Oceanic Boatworks; analyzing cash flows from alternatives.)

a. Analysis of Alternatives

1. First alternative is to use the old machinery for three more years,
disposing of it at the end of Year 3.

End of Year
Cash Flow Item 0 1 2 3
Income Taxes Saved because of
Depreciation of $100,000
each Year..................................... $40,000 $40,000 $40,000
Sum of Above.................................. $ 0 $40,000 $40,000 $40,000
End of Year 0 Present Value
Factor at 12 Percent................. 1.00000 0.89286 0.79719 0.71178
Present Value Factor X Cash
Flow .............................................. $ 0 $35,714 $31,888 $28,471
Present Value at End of
Year 0........................................... $96,073

Solutions 8-10
8.30 a. continued.

2. Second alternative is to acquire the new machinery and sell the old
machinery at the end of Year 0.

End of Year
Cash Flow Item 0 1 2 3
Investment in New
Machinery .................... $ (1,000,000)
Sell Old Machinery .......... 200,000
Taxes Saved at 40 Per-
cent Caused by Loss
(= $300,000 –
$200,000) on Sale of
Old Machinery ............. 40,000
Operating Cash Flows
(Savings of Outflows). $ 250,000 $ 250,000 $ 250,000
Income Taxes on Above
at 40 Percent............... (100,000) (100,000) (100,000)
Income Taxes Saved
because of Deprecia-
tion each Year.............. 40,000 120,000 80,000
Cash Proceeds of Dis-
posal of New Machine
at End of Year 3 .......... 400,000
No Gain or Loss on Dis-
posal; Hence Taxes
Paid on Gain/Loss
at Disposal ................... 0
Sum of Above................... $ (760,000) $ 190,000 $ 270,000 $ 630,000
End of Year 0 Present
Value Factor at 12
Percent.......................... 1.00000 0.89286 0.79719 0.71178
Present Value Factor X
Cash Flow..................... $ (760,000) $169,643 $215,241 $ 448,421
Present Value at End of
Year 0............................ $ 73,305

b. Recommendation: Use old machinery, do not buy new machinery.

c. If the 12-percent figure includes an allowance for inflation, but the cash
flows used in the second alternative do not, then we should reduce the
discount rate used in the second alternative to remove the inflation
component of 6 percent.
The correct rate to use is 5.66 percent [= (1.12/1.06) – 1]. If we
reduce the discount rate to 5.66 percent, then the net present value of
the second alternative increases to $185,267 and the new equipment
becomes worthwhile.

8-11 Solutions
8.31 (Specialized Consulting Service Company; net present value graph and
indifference cost of capital.)

a. Project Alpha
Number of Years
to Elapse before Discount Rate
Cash Flows Occur .00 .04 .08 .12 .15 .20 .25
0 $ (100.00) $ (100.00) $ (100.00) $ (100.00) $(100.00) $ (100.00) $ (100.00)
1 125.00 120.19 115.74 111.61 108.70 104.17 100.00
2 --- --- --- --- --- --- ---
Net Present Value $ 25.00 $ 20.19 $ 15.74 $ 11.61 $ 8.70 $ 4.17 $ -0-

Project Beta
Number of Years
to Elapse before Discount Rate
Cash Flows Occur .00 .04 .08 .12 .15 .20 .25
0 $(100.00) $(100.00) $(100.00) $(100.00) $(100.00) $(100.00) $(100.00)
1 50.00 48.08 46.30 44.65 43.48 41.67 40.00
2 84.00 77.66 72.02 66.96 63.52 58.33 53.76
Net Present Value $ 34.00 $ 25.74 $ 18.32 $ 11.61 $ 7.00 $ -0- $ (6.24)

b.

$34–

Net Present 32–

Project Beta
Value in
28– •
Dollars
$25–
•
24–
• •
20–
• •
16–
••
12– •
•
8–
•
4– Project Alpha

0– •
| | | | |• |
.04 .08 .16.12 .20 .24
.15 .25
Discount Rate in
Percent per Year

Solutions 8-12
8.31 continued.

c. The decision rule for choosing between two mutually exclusive projects
is to accept the project with the largest net present value. In this
example, 12% is the indifference point. That is, Project Beta has a
larger net present value for costs of capital less than 12% and Project
Alpha has a larger net present value for rates greater than 12%.
Management must decide whether its cost of capital is greater than or
less than 12% to make its investment decision.

d. As the discount rate changes, rankings of projects can change. The

higher the discount rate, the more attractive are near-term cash
inflows relative to more distant cash inflows. The net present value
graph gives some visual indication of the sensitivity of projects' payoffs
to changes in discount rates.

8.32 (Custom Machining Company; deriving cash flows for asset disposition.)

$65,117. The $160,000 is gone and an economic loss of $80,000 was

suffered because of the bad purchase. The issue now is do we want to swap
a large current tax loss and smaller future depreciation charges for no tax
loss now and larger future depreciation charges.
The new machine will lead to depreciation charges lower by $16,000
per year than the "old" machine and, hence, income taxes larger by $6,400.
The present value of the larger taxes is $6,400 X 3.60478 (Table 4, 12%, 5
periods). Let S denote the proceeds from selling the old machine. The net
current "outlay" to acquire the new machine is $80,000 – S – .40 ($160,000
– S) or $16,000 – .60S, so that for the new machine to be worthwhile:

$16,000 – .60S < –$23,070

.60S > $39,070
S > $65,117.

8-13 Solutions
8.33 (Tiny Treasures Company; deriving cash flows for abandonment decision.)

a. End of Year
0 1 2 3 4
Alternative (1): Sell
Machine.
Recovery Value................... $ 8,000
Tax Saving (.40 of loss
of $4,000)......................... 1,600
$ 9,600

Alternative (2): Keep

Machine.
Sales Revenue Less
Variable Cost Out-
flows............................... $15,000 $15,000 $15,000 $15,000
Fixed Cost Outflows........... (10,000) (10,000) (10,000) (10,000)
Depreciation Charges........ (3,000) (3,000) (3,000) (3,000)
Proceeds on Disposal of
Machine ........................... -- -- -- 800
Taxable Income .................. $ 2,000 $ 2,000 $ 2,000 $ 2,800
Income Taxes Payable...... $ (800) $ (800) $ (800) $ (1,120)
Net Cash Flows (Above
Amounts Excluding
Depreciation) .................. $ 4,200 $ 4,200 $ 4,200 $ 4,680

b. and c.

Present Value Factors:

at 12 Percent.................. .89286 .79719 .71178 .63552
at 20 Percent.................. .83333 .69444 .57870 .48225
Present Value of Flows:
at 12 Percent.................. $ 3,750 $ 3,348 $ 2,989 $ 2,974
at 20 Percent.................. 3,500 2,917 2,431 2,257
Net Present Value of
Cash Flows:
at 12 Percent.................. $13,061
at 20 Percent.................. 11,105

The preferable alternative is to keep the machine. The important

lesson of this problem is to evaluate the alternative of keeping the
machine. Even though the machine had been acquired several years
ago, cash could be generated by selling it now. That cash and the tax
savings realizable on disposal are the opportunity cost of keeping the
machine.

Solutions 8-14
8.34 (Managerial incentives of performance evaluation based on accounting
data.)

Sometimes, because of the conservatism of financial accounting,

expenditures that are "investments" are not capitalized, but are written off
currently, depressing current earnings but boosting future earnings. Such a
phenomenon may well influence management to prefer projects with short-
term benefits at the cost of ignoring longer-term projects with even larger
benefits but which take more time to benefit reported earnings.

8.35 See the solution to Case 7.65 in Chapter 7.

8.36 (Merits of net present value.)

(1) Statement is correct. NPV takes into account all cash flows and
the timing of all cash flows.

(2) Statement is correct.

(3) Statement is correct.

(4) To make correct decisions, the hurdle rate must be the opportunity
cost of capital which generally is independent of the specific
debt/equity mix of the project. Income taxes, inflation, and cost
increases must be accurately projected to get a legitimate net
present value solution.

(5) Correct if all alternatives are considered.

(6) Statement is correct.

(7) Statement is correct.

8-15 Solutions
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Solutions 8-16
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gathered in Sid’s face, “but you know more than we do. I must tell
what you do know to my old men, for they are very wise and their
decision is final. You have told me nothing that gray hairs can listen
to, so far,” he concluded persuasively.
Sid reflected. Would it not be better to tell the whole truth now and
trust in Honanta’s judgment? He decided to tell part of it anyhow, for
Big John and Scotty might be led here by Ruler to-morrow, he felt,
and he might as well explain them now.
“I sent Hano to bring my friends here,” he replied. “They have a
tracking dog—a hound—and could trace me here in any event, so I
wanted to avoid a fight. The dog would lead them to Red Mesa,
chief.”
“And so you sent Hano!” laughed Honanta. “My son Hano would kill
that dog, kill those friends of yours, too, sooner than permit them to
reach our home! Did you not think of that?”
Sid attempted to show his surprise at this Indian point of view on his
action, but the idea was not new to him and the chief saw it.
“Come! There is more back of it, yet, my son!” prompted Honanta.
“The truth—and I will do what I can for you with the elders.”
“There’s a party of Mexicans coming along the border,” replied Sid
desperately. “They will find our tracks and trace us all to this place. I
felt that we needed my friends to help you defend it, Honanta. That’s
the whole truth.”
“Ha!—No! There is more!” exclaimed Honanta, his choler rising.
“Why are the Mexicanos coming? And why is your party down here?
Do you think I do not know why? Somehow, the tale of our mine has
gotten out! Don’t I know what white men will do to possess
themselves of a mine? What won’t they do!” he exclaimed bitterly.
“You are all our enemies!”
“Not I!” retorted Sid, stoutly. “I am an ethnologist—no miner! The
study of your people is my lifework, chief. Sympathy for them has
become my ruling passion. Since I came here, my one idea has
been to preserve this place forever as your home. I’ll seal my friend’s
lips forever about this mine——”
Sid stopped hastily, for he had made a slip that he had not intended.
It did not escape Honanta, however.
“No! we shall do that!” he said grimly. “My son, you are an enemy to
us. You cannot help yourself. But, because of him who saved my
mother and you who represent him, I have vowed to give a Sun
Dance to-morrow. You must be present at it, for you are the physical
evidence of my deliverer. According to our laws of hospitality you
have one sun of immunity among us. But to-morrow, when his
shadow reaches there,” the Chief pointed to a great crack on the
inside of the west wall—“you must go forth—if you can.... As for your
friends, we shall take care of them if Hano does not!”
He turned and motioned to two of his braves. “Bind him!” he
commanded. “Medicine lodge!”
They stepped forward and seized Sid. In a very few minutes he
found himself seated, firmly bound to the very post from which he
had freed Hano but recently. The food Nahla had brought for Hano
was fed him; then the door was shut and he was left in the darkness
of the lodge.
Sid reflected over it all as he sat, awaiting the long vigil until morning.
Escape was impossible. Not only was he bound cunningly to the
post so that any movement of even his hands was impossible, but
two Apache guards squatted near him, silent as specters but
watching him fixedly.
“Go forth—if you can!” had been Honanta’s last words. In them Sid
found his sole hope. Honanta was still his friend, but the logic of the
situation had been too strong even for him. But Honanta was more
than his friend. It was true, then, that Colonel Colvin was that white
officer! Honanta had said so at last. Through his father he owed a
debt that to an Indian is never paid. Honanta, too, was torn between
two duties—that to his tribe and that to Sid as the Colonel’s son. In
the subtle workings of the Indian mind there would surely be a
loophole for him, somewhere, by Honanta, Sid felt. It was for him to
find and utilize that loophole of escape. It would be something that
would clear Honanta’s conscience as regards his tribe, yet fulfill his
obligation to him as the son of the man who had saved his life.
What it would be, Sid could not imagine. He decided to keep his
eyes open to-morrow, alert to seize the opportunity whatever it
should be. Then, with the ability of youth to sleep anywhere and in
any impossible posture, his head fell forward on his chest and he
was soon oblivious of his and any one else’s troubles.
Next morning as he was led from the lodge, a notable change in the
village greeted him. A high Sun Dance pole had been erected during
the night, with a cross bar secured near its top. From the bar
dangled two effigies; the figure of a man and of a mountain sheep.
Sid recognized the symbol of it. The figure represented Honanta,
dead but for the intervention of the Great Mystery in the person of
that white officer who had spared his mother. The mountain sheep
represented man’s physical life, his principal means of sustenance,
the gift of Mother Earth, replacing the buffalo of plains ceremonies.
After a time Honanta appeared, nude save for his moccasins and
breech clout; his hair was disheveled, his body daubed with clay. He
dragged after him the skull of a mountain sheep, symbolizing the
grave from which he had escaped by divine intervention. As the
eastern sun flamed over the wall of Red Mesa, an old priest cut and
scarified Honanta’s chest, signifying the natural accompaniments of
a physical death.
The rest of the tribe now formed in a line under the east wall and
faced him. Sid himself was placed opposite Honanta, standing alone.
He felt awed at the part he was taking—for he obviously represented
the instrument through which the Great Mystery had shown His
favor.
Looking with fixed eyes on the sun, Honanta began the Sun Dance,
dragging the skull after him and blowing from time to time on a
sacred whistle which he kept pointed at the sun as it rose toward the
zenith.
Sid watched him, fascinated. He was seeing the original Sun Dance,
the Indian symbol of death and resurrection, as it was before later
changes degraded it into a meaningless exhibition of endurance
under torture—about on the level with our own bull-ring and prize-
fight arena. How long the dance would keep up depended solely
upon Honanta’s physical endurance. He was not much over forty
years of age, so he would be yet in his prime, and his fervor would
lead him to dance before the Great Mystery until his sinews could
work no longer.
Sid’s prayers went out to aid him. He liked to see a man give his
best! This humbling of the body was nothing repulsive, when one
thought of the exalted mood of that soul, engaged in an act of Indian
worship so far above our own milder and, let us say, more self-
indulgent and vanity-ridden forms of ritual.
An hour passed; two hours, while still the devoted Honanta
maintained the peculiar syncopated rhythmic dance of the Indian.
Occasionally his voice rose in a wild, high chant, relating the story of
his rescue by that white officer of long ago. He called on the soul of
his mother to witness; poured out prayers in thankful chants to the
Great Mystery.
Sid watched, himself entirely in sympathy, the whole band of
Apaches gradually working themselves to higher and higher
exaltation of religious feeling. He hardly noted the passage of time
until a glance over to the west wall brought home to him with a
sudden shock that the shadow of the east wall had nearly reached
that crack in the granite. His time was coming soon!
Others had noticed it, too, for one of the elders spoke a word. With a
final invocation to the Great Mystery, Honanta slowly brought his
dance to a close. He tottered toward Sid, his eyes sightless, his hand
groping until it gripped Sid’s.
Sid felt a renewed fervor in that grip, but all Honanta said was: “My
son, guide me—for you must now go forth from us.”
One of the braves pressed Sid’s rifle into his hands. Leading
Honanta, Sid started for the medicine lodge. Young bucks and elders
surrounded them. They were fully armed and their faces expressed
the grim determination of the executioner. Sid guided Honanta to the
outlet of the tunnel and himself raised the medicine sheepskin.
“Careful, my father!” he warned courteously, putting Honanta’s hands
on the ladder post.
They descended, the tunnel filled with creeping warriors, ahead and
behind them. Sid could not see what chance there was for his life in
this! To whirl and shoot the instant his foot left the cave?—before he
could move, a flight of arrows would feather themselves in him! If
Honanta had a loophole in mind it must be provided soon!
But the party crept on down steadily. Then along each side of the
cave entrance the bucks parted and lined up with arrow on string.
Sid drew a long breath and stepped steadily to the entrance. Beyond
that he could not go, without death. Bows creaked as he turned
slowly, to find arrows drawn to the head upon him.
But Honanta was close behind him. “You must go forth, now, my
son,” he pronounced gravely.
Sid tensed every muscle in his body, intending to throw himself down
the lava crevice and then turn and shoot for his life. It was a forlorn
hope, but——
Two long, fringed, buckskinned arms closed slowly around him as
his foot lifted for the first step. Sid halted wonderingly—but the push
of Honanta urged him on:
“Go forth, my son—and I will go with thee!” whispered the chief’s
voice in his ear. “I cannot see thee slain! Let them shoot!”
Honanta’s own arms were around him now, his body protectingly
between him and the Apaches. That was the way he had solved his
dilemma!
Sid backed rebelliously. “No, chief! No! You must not!” he protested,
attempting to turn in the chief’s arms. The utter silence of
astonishment was all around them, the Apaches hesitating, arrow on
bow, utterly disconcerted at this sudden development.
“On! While there is time!” grated the chief’s voice. “We shall escape
to your people. They must never find Red Mesa. I trust you, my son,
to keep silence!” urged Honanta.
Sid nodded. Honanta had found the best way out of it all. They were
about to go on, letting the tribe decide as it would, when the distant
Rrrraammp! Rrrraammp! Rrrraammp! of rifle shots coming from over
the mountain arrested them.
“Halt! It is too late, Honanta!” barked Sid. “Listen!”
A fusillade of distant rifle shots broke out; then the rapid, continuous
discharge of a repeating rifle.
“Ten shots!” said Sid. “That’s the Navaho’s Winchester, chief. Ours
hold only five. Those other shots are Mausers—not hunting rifles!
The Mexicans are here!”
He pushed Honanta back in the cave and then faced the Apaches.
“Warriors of the Apache, I must stay and fight with you!” his voice
rang out. “Those rifles are of Mexicanos, coming to take your home.
After it is all over you can do what you will with me. Is it peace?”
The Apaches nodded sullenly and lowered their bows. Without
Honanta they were leaderless.
“Let no one go out!” ordered Sid. “We need every man right here!”
 CHAPTER X
THE DEFENSE OF RED MESA
AS the Mexican rifles whipped and sang in the crags sheep after
sheep staggered and fell. Hano’s eyes blazed with indignation. At
least six of these white-clad Mexicanos were up there and three of
the sheep were killed, a noble ram and two ewes, but still the
slaughter went on unceasingly. That band of big horns and a few
others like it around Pinacate were almost the sole meat supply of
Hano’s tribe. A few each year had been plenty to keep them all in
meat. One ram would have been more than enough to feed all this
band of white men all they could carry away, yet nothing less than
the slaughter of them all—brutal, thoughtless, insensate killing for
the mere pleasure of shooting seemed their purpose. Higher and
higher the Mexican hunters climbed, following the doomed sheep up
to the ridges. Once over them and——
With a great bitter cry of rage at the sickening insatiate greed of it,
Hano rose to his feet, snatched Niltci’s rifle from his hands and
emptied it in rapid shots. He sent bullets whistling among the hunters
up in the crags, then shot down horses among that group closely
packed in the Pass below them. Dashing down the empty weapon
with a curse of rage, he bounded down through the mesquite and
was lost to sight. Niltci, himself overwhelmed with indignant
sympathy over this useless slaughter of wild life, had not interfered
with Hano and he now picked up the rifle and reloaded it.
“Good hunch, Injun! Shootin’ them hosses is our best bet arter all!”
muttered Big John to himself raising the meat gun to his shoulder.
He aimed full at the serapé-clad rider who sat his horse, yelling up at
the hunters above and signaling urgently to them to return.
“Greaser, I could kill you now, an’ end all this to onct,” he muttered,
“but ontil you shoots at me fust, I cayn’t do it.” He lowered the sights
a trifle and pulled trigger. Instantly the horse which the Mexican rode
collapsed and fell kicking on the sands. Vasquez jumped free.
“Gringoes! Enemigos! Tira! Tira!” he yelled, shaking his fists and
pointing wildly.
Big John went on shooting, picking off horse after horse. Niltci’s rifle
was thundering in his ears, for the indignant Navaho had turned his
fire on the sheep slaughterers now scrambling madly down the hill. A
wild commotion had broken out in the confused knot of horses and
men that were left of the cavalcade. Presently a band of five of them
mounted and rode swiftly toward their position. Then down below a
single war whoop rang out and Big John saw a lone Indian rider
dash out into the Pass. It was Hano, making his sacrifice of leading
as many as possible of the enemy after him away into the desert. A
fusillade of shots greeted him; then the rapid clatter of hoofs as the
whole band swept by, Hano far in the lead on Sid’s pony. Big John
dropped the foremost horse as they passed below him; the rest
swept by quirting their mounts furiously as Hano disappeared over a
swale in the sand dunes.
“Now we got to settle with Mister Vasquez!” exclaimed Big John
grimly. “Thar’s still half a dozen of them with him, against the two of
us up yonder.”
But Niltci did not hear for he had crept up to a better position. He had
seen nothing of Hano’s race as he was too hotly engaged with the
Mexicans on the hillside.
Big John peered out of his rocky lair, looking for “that ornery
Vasquez.” A glimpse of him showed high among the rocks; then his
rifle barked and the bullet spanged the rocks near by. The other
Mexicans were now well concealed in the crags and the crack of
their rifles and the whine and smash of Mausers about Big John’s
position told him that the battle was on in dead earnest. For a time
the fight remained stationary, both sides so well concealed that no
quickness of sight could register a direct hit. Then a shot rang out,
much nearer to the left.
“Bad business, Niltci,” called out Big John, “they’re working down this
way an’ hev got us cornered on this little knoll. We gotto do a sneak
around this point and git above them somehow.”
Niltci had already foreseen the danger, for he was now creeping
snakelike through the rocks around the right flank of the knoll.
Big John grunted whimsically as he followed after: “Gosh dern it, I
ain’t even goin’ to act civilized, pronto, if these hyar doin’s keeps up!
I don’t like that party in the barber-pole poncho, none, an’ I’ll get
careless and drill daylight through him ef I don’t watch myself!” he
soliloquized.
Then he came out on the right flank of the knoll, where all that vast
interior angle of the mountain range burst at once into full view. For a
moment he peered out and just stared! A huge black apron of lava
fell out of the high lap of the mountains and spread far and wide
down the slope until lost in the sands. But, dominating the gap where
this lava flowed out, he saw two immense red walls, cast up like
opening trap doors of granite. From his position the whole formation
could be grasped in its entirety and its resemblance to a mesa struck
Big John at once.
“She looks jest like Thunder Mountain up near Zuñi to me,” he
muttered wonderingly, “only she’s red. Red Mesa, by gum!” he
exploded, as the conviction smote upon him. “An’ that pesky Sid’s
been and gone an’ found it! Thar’s whar he is, now, with them
Apaches, I’ll bet my hoss! Wouldn’t that knock ye dead?”
Silent, majestic, imposing, Red Mesa shimmered in the morning sun,
high above all. That it held the secret of Sid’s disappearance and
explained the mystery of these Apaches was a conclusion that Big
John jumped to instinctively.
And then a shrill squall of triumph rang out high on the mountain side
above him! Big John crawled to a better outlook and gazed upward.
Exposed on a ragged pinnacle, Vasquez stood waving a rifle
triumphantly over his head and screaming in Spanish unintelligibly.
That he had seen Red Mesa, too, and was calling to himself all his
guerrillas there was no doubt at all!
Big John raised his rifle carefully, its tall front sight rising high above
the rear bar. “Four hundred, five hundred; no, more’n six hundred
yards!” he muttered. “It’ll be some stretch for the ole meat gun, but,
greaser, you’ve looked at this parteekler scenery all you’re entitled
to!”
He held the bead steady, resting his elbow on a rock. Gradually his
muscles cramped in a rigid pose while the tiny dot up there in the
crags hovered motionless over the tip of his front sight.
“Sho! greaser,” said Big John, lowering the rifle. “Y’ain’t done
nawthin’ yit what I orter kill ye fer! Yore int’rested, jist now—it’s our
chanct to make a run for it an’ git between you an’ th’ home plate, I’m
thinkin’. Siddy boy, I aims to reach ye this trip!”
He crept rapidly down to where Niltci lay concealed and touched him
on the shoulder. Together they wormed swiftly down the mountain
and reached the sands. Here the high flanks concealed them from
the view of those above. After one sharp glance around by Niltci,
both ran at full speed along the base. Up and up at a gentle slant for
some half a mile the sand drift led them, until they had arrived at the
foot of the lava flow where it dipped down below the sands. Along its
vitrified surface they sped—and then Big John stopped and gripped
Niltci’s arm, breathing heavily. Above them on the lava slope an
apparition had appeared. A man crouched in a sort of cave mouth up
there, and he bore a rifle in his hands. He waved energetically to Big
John to get under cover at once.
“Ef that ain’t Sid you can call me a tin-horn gent!” gasped Big John.
“Whoopee, Sid! Keep down!—Look out, watch yourself!” he yelled
out alarmedly.
His outcry was fatal. A rifle whanged out up in the cliffs above and
instantly came the sharp thud of a bullet. Big John coughed, groaned
in the inflectionless cry of the unconscious, and tumbled in a heap on
the rocks. Niltci gave one swift glance upward at the man in the
serapé who had fired, then grabbed Big John and dragged his huge
shape under the shelter of a crag. Sid had disappeared as if struck
flat, but the whip of his army carbine rang out sharply. A volley of
shots replied, coming from all over the hillside. Bullets struck the lava
apron and went whining off into space; more of them plunged down
around Niltci’s position.
Bits of granite flew in a sharp dust about him. The place was utterly
untenable. Niltci looked for a better lair, noted a little hollow in the
crags and then jumped out and exposed himself to draw their fire for
an instant. He heard shot after shot whipping out from where Sid lay,
felt the terrific smash of Mausers all around him, then he picked up
Big John and raced with him for cover. A sharp touch seared his
arm. He felt it grow paralyzed in spite of him and it let the cowman
drop violently against the rough scoriated boulders. A groan came
from Big John, showing that he still lived, then the Navaho flung
himself into the lair and rolled the great limp body in after him.
But this could not last! It was as hot a corner as man ever got into.
Sooner or later flankers from the guerrillas above would find a
position from which it could be fired into, and then nothing could
save them. Niltci raised his voice in a low Navaho’s death chant,
watching the rocks above him from a crevice in his lair, rifle poised
for instant use. He needed help badly. Finally he sent out the word
for it in a ringing call that would be understood by the Apaches, if any
were near. It would be upon their honor to respond.
An occasional desultory shot now came from Sid, up there on the
lava apron. Above on the mountain was silence, sinister, and
foreboding. The Mexicans were creeping carefully, silently downward
toward him. Presently there would be a rush of overwhelming
numbers—then death!
Niltci waited, finger on trigger, eyes alert. A slight sound and the
rolling of a stone came from somewhere above, but he could see
nothing without exposing himself to he knew not what danger. It had
been Big John who had rescued him from his own kinsmen, during
those fanatical disturbances caused by the Black Panther of the
Navaho, and Niltci would never desert him now! Coolly, resignedly,
he awaited that final rush that would be the end of them both.
A rapid movement and the flinging of a body down behind some
rocks sounded above him, right close now. Sid’s rifle sang out but its
bullet was too late. Relentlessly they were closing in!
A low groan sounded below Niltci. He glanced back out of the corner
of his eye and saw that Big John’s eyes were open. His face was
livid, drawn and gray, but he was turning feebly on his side and
fumbling at the big revolver strapped to his thigh.
“Watch yoreself—Injun—I’m gyardin’—yore rear,” muttered the
cowman hoarsely.
Niltci felt better. Big John was alive and could shoot, anyhow! He
moved to a new position where he could command more of the rocks
above. White-clad figures dodged instantly out of sight behind rocks
as he appeared. They were all quite near him, not over forty yards
off. All that was needed was some signal to precipitate a concerted
rush. Niltci looked about him for help again. Only the silent lava wall
and the surety that Sid was on watch up there gave him any hope at
all. Well, it would soon come! All he hoped for was the chance of a
few shots from the repeater before one of these buzzing Mauser
bullets brought final oblivion.
And then, far above on the mountain side, sounded the rapid belling
of a hound!
Ruler! Scotty was coming, and he would take them all in the rear!
Niltci fingered his trigger eagerly as the musical notes floated nearer
and nearer: “Come, white boy! Come!” he sang, in urgent Navaho
chanting.
A heavy repeating rifle opened up, its familiar cannonlike roars
sounding sweet in the Indian lad’s ears. That .405 could outrange
anything on the mountain, and Scotty was a dead shot!
Yells and cries broke out all around him above. Men rose bewildered
while Niltci emptied his repeater and Sid’s rifle spoke rapidly, shot
after shot from the lava. The guerrillas were breaking, running. Like
snakes they were creeping off to new points, out of reach of that
heavy .405 whose bullets split the granite where they struck!
Niltci felt that the psychological moment for attack had come. This
whole movement was bearing off to the left now, the only place
where the guerrillas could be safe from fire above and below. He
leaped forward, darting from cover to cover and firing at every sight
of a white figure among the rocks. Behind him he heard ringing
Apache war whoops, and, looking back, saw the whole lava slope
covered with buckskin-clad figures that had come from he knew not
where. In a moment more his own mountain flank had swallowed
them all up. Niltci gave a single answering cry and pressed on.
Then he stopped, his heart stricken dead with sudden alarm, for a
whirl of objurgations in Spanish raged below him and he saw a
serapé-clad figure racing along under the crags of the base, headed
straight for where Big John lay concealed! Niltci turned and flung
himself down the mountain, exposing himself recklessly. To get to
the wounded Big John before this demon could finish him—ah, might
the Great Mystery lend him wings! In three leaps he had reached the
rocks above the lair. He jumped out, rifle at shoulder, unmindful of
anything but not to be too late. Niltci got one glimpse of Vasquez,
standing with rifle poised, his eyes glaring with surprise, for instead
of Sid—the boy with the Red Mesa plaque—Big John lay facing him,
lying on his side, cool resolution shining steadfastly in his eyes, the
big revolver poised in a hand that nevertheless shook with
weakness.
But before either of them could pull trigger a war bow twanged
resonantly and the swift flash of an arrow swept across Niltci’s face.
He saw Vasquez tottering, faltering, and crumpling slackly; heard the
rifle and the revolver bellow out together—and then a tall Apache
chief stood before him, breathing laboredly, his eyes flashing the wild
fire of war. Niltci held his ground and his rifle half raised. Peace or
war with this chief, the Navaho boy faced him undaunted and Niltci
was going to defend that place to the last! Below him was the little
rocky lair where lay Big John, silent, face downward.
The Apache raised his hand in the peace sign. “Navaho, thou art a
brave man! He that risks his life for a friend!” he dropped his arm
significantly as if to say that no higher test of character existed.
“Come; my young men pursue them, and none shall escape. Let us
take this white man where his wounds can be cared for, my brother.”
Just at that instant Sid came around the rocks about the lava lair. For
a moment he stood looking, first at Big John lying silent as death,
then at Niltci sitting dazedly and weak on the ground. His eyes
glanced only once at the huddled figure of Vasquez.
“Oh! oh!—Big John! Is he dead!” he cried, the sudden catch of a sob
in his voice.
He went over quickly to Big John and felt under his shirt. Then he
looked up, worried, anxious, but hope shone in his eyes. “He’s alive,
Chief! But we must act quickly, for he’s losing blood fast. Help me,
Honanta,” cried Sid urgently.
Together they got at the wound. That Mauser had plunged
downward, smashing through the shoulder at a slant; tipped a lung,
as the red froth on Big John’s lips showed, and had come out in a
jagged tear below the big muscle on his chest. He breathed
laboredly and his eyes were still closed. Sid shook his head and
there were tears in his own eyes. To lose Big John, that faithful,
devoted old friend who had raised him and Scotty from cubdom, had
been with them on a dozen expeditions, a thousand hunts—it was
unbelievable!
“I’ve seen worse. My medicine men can cure him!” said Honanta
cheerily. “We shall bring him to our village, and all will be well. My
son, your friends are our friends! They have done well!”
“Thank you, Honanta,” said Sid, simply. “I have yet one more thing to
ask you to do, and then this whole business will come out all right.”
“And that is?” asked the chief, smiling.
“To come with me and meet my father,” said Sid earnestly.
“Ai!—I shall go with you soon! But first, where is my son, Hano? Not
yet have I heard his war cry,” replied Honanta anxiously.
Niltci turned from his guard of the place and approached the chief.
“He came to us, Apache. He led us to these mountains. Then came
the Mexicanos. We were to run them a race away into the desert
with our fast horses. But they saw sheep on the mountain. They
started killing them—ugh, but it was a slaughter sickening to see!
More than many, many white men could eat, they shot! Then rose up
your son, Hano, out of ambush and cursed them, as I too would
have done. He fired my rifle at them, killing many horses. When the
shells were all gone he left us. That is all I know.”
“Who does know what became of Hano, then, Niltci?” inquired Sid
eagerly.
The Navaho pointed to the silent figure of Big John.
“Hai!” breathed Honanta’s deep voice. “He must live! I must know
what has happened to my son! If he died, it was as a great chief
should die, for his people. If he lives, this white man shall tell us and
my best trackers shall seek for him. Come!”
They all picked up the inanimate form of Big John and carried him
slowly along the lava apron brink. From afar came the occasional
crack of a rifle. The chase had gone a long distance to the westward.
Once they heard the bellow of Scotty’s .405 from far down beyond
the knoll. The peculiar volume of it was unmistakable, easily told
from the sharper whip of the Mausers. Sid would have liked to join
him, but his duty now was to see Big John under competent care. He
had great faith in those Apache medicine bundles. There were
healing herbs in them that the Indians alone knew; not all their
“medicine” was sorcery and meaningless medicine dances, for in the
treatment of wounds they were wonderful.
Up the steep ascent and through the sulphur-fumed reaches of the
cave tunnel they bore Big John. When he had been laid on a couch
in the medicine lodge and the old men had set to work at his
wounds, Sid called Niltci to him.
“I want to show you this Red Mesa, Niltci,” he said, “for my heart is
heavy within me. We can do no further good here.”
Together they went out into the little valley, Niltci’s cries of pleasure
over its isolation and peace as detail after detail of it was grasped by
his keen Indian mind singing in Sid’s ears. It made him even more
depressed. What would Scotty’s reaction to all this be? Scotty, the
practical, hard-headed engineer, who would no doubt hop on this
mine with a howl of delight and pooh-pooh any suggestion of
abandoning it to the Apaches as their home. The first white man who
staked out a claim here owned it. These Indians had no rights. How
could he reconcile Gold with Nature in Scotty’s mind—dissuade him
from taking his civic rights, for the sake of this people?
Sid wanted to have his mind made up before they set out to join
Scotty. He watched Niltci as they came opposite the mine fissure.
The Navaho boy stopped with another exclamation of pleasure. He
was an expert silversmith himself, and he recognized the metal
instantly amid the dull copper. But in Niltci’s eyes there showed no
hint of possessing it, of taking this whole mine for himself. This metal
was for all, the gift of Mother Earth to the whole tribe, according to
his training. He would be just as welcome to set up his forge here
and smelt all the silver he wanted as the Apaches were to make
arrow tips of the copper. He told Sid this artless viewpoint as the
latter questioned him, seeking light in his perplexity.
Sid shook his head. How different from Scotty’s idea! A claim that
gave exclusive ownership; vast engineering works; ships; an
organization that would take all this metal for one man’s enrichment
—that was the white man’s way!
“Come, we must go find Scotty, Niltci,” said Sid despondently,
leading him away.
Honanta bid them good-by, assuring them that Big John was doing
well. Sid went down the cave tunnel feeling like a traitor. His worst
problem was still ahead of him, he thought.
But the Great Mystery had planned otherwise, in His inscrutable
ways. For, when they reached the lair where Big John had fallen,
Vasquez was gone! Honanta’s arrow had not killed him; he had been
simply feigning death while they were working over Big John!
 CHAPTER XI
GOLD VERSUS NATURE
“HOW goes it, Big John?” asked Sid cheerily, coming into the
medicine lodge the morning after the big fight.
“Bad breath, worse feet—I’m mostly carrion, I reckon,” smiled Big
John weakly from his bandages. “All-same turkey-buzzard.”
Sid laughed gayly. There was no quenching the giant Montanian’s
humor so long as the breath of life existed in him! “Guess you’re
better, all right!” he answered, relieved.
“Whar’s my dear friend, Mister Spigotty?” inquired Big John with
elaborate sarcasm. “Last I seen of him, he was fixin’ to turn loose a
machine-gun onto me.”
“We’re still worrying about him, John,” replied Sid seriously. “He got
away. The chief’s arrow took him just as he was about to pull trigger
on you, but I think that loose serapé he wore saved him. An arrow
just loses its punch in it. Anyway, he was only playing ’possum while
we were fixing you up, thinking he was done for. We haven’t seen
the last of him by a long shot. Ever hear the fate of the Enchanted
Mesa, John? That’s what’s worrying me now.”
“Yaas,” said Big John, slowly. “Earthquake shook down the trail up to
her, didn’t it? Then the hull tribe up thar jest nat’rally starved to
death.”
“That’s what the ethnologists proved when they finally got up on
Enchanted Mesa,” agreed Sid. “The Indian legend persisted that a
tribe had once been marooned up on that sheer-walled stronghold.
No one believed it was more than a legend until the mesa was
visited by an aeroplane or something and then they found the ruins
of an old pueblo. Did you ever think, John, that this cave of ours is
the only gate to Red Mesa? If Vasquez blows that up with dynamite
we’re all doomed to starve here—another Enchanted Mesa!”
“Yaas,” sighed Big John, wearily. “But Vasquez shuts hisself out’n his
own mine, that way, though. An’ whar’s yore dynamite?”
“He’ll have some. Sure about that,” said Sid, confidently. “A man
doesn’t go mining without it nowadays. And then, here’s the dickens
of it: he can’t do anything about this mine with us around, see? But, if
he can shut us up here, all he’s got to do then is to hang around—
and let Nature do the rest! We’ll all starve. See? Diabolical idea, eh?
But that’s the cold, cruel, Spanish logic of it, see?”
“Nice hombre!” growled Big John. “Take me out thar, boys, whar I kin
see thet cave mouth, and lay the old meat gun beside me—he won’t
do no sech thing.”
“You lie still!” Sid soothed him. “Honanta knows about it. He’s got
scouts outlying all around the cave mouth.”
“Take me out thar!” insisted Big John. “I ain’t trustin’ no Injuns whar
you boys is concerned! Hyar! Put me under a brush shade at the top
of that lava dam, whar I can see the cave mouth. ’Twill do me good
and give me a job of work!” he urged.
Sid quieted him. “You couldn’t even lift a six-gun, now, old settler! Lie
still. Just as soon as you can be moved we’ll set you out there, if it
will ease your mind.”
Big John sank back, satisfied, as most sick men are, with a promise.
After a time he raised his head again.
“Whar’s Scotty, Sid?”
“I don’t know,” replied Sid, shortly. He shrugged his shoulders and
remained silent, his eyes averted.
Big John regarded him keenly for some time. “You boys been
quarrelin’, without yore old unkel to go settin’ in the game?” he
asked, trenchantly.
“Yes. You see it’s this way,” broke out Sid impulsively. “Scotty’s all for
staking out this mine and filing a government claim on it. I couldn’t
get him to see it my way, so we—well, we had a row over it,” said
Sid. His voice told Big John how it hurt him to have anything come
up between himself and such an old chum as Scotty.
“What’s yore idee, son?” asked Big John curiously.
“Haven’t these Indians any rights?” burst out Sid impetuously.
“Whose mine is it if not theirs? It’s common property with them,
though, just as are the beans they raise and the game they shoot.
Along comes Scotty and thinks because he’s a white man he has a
right to stake a claim and take the whole thing for himself. And our
government will give it to him, too—that’s the pity of it! Did he find it?
I guess not! And it’s their home, too! Are we going to turn them out?”
The fire in Sid’s voice told Big John how hot had been that argument
between the friends. All this was, no doubt, Sid’s side of it.
“If Honanta knew what Scotty was really set on doing not one of us
would leave here alive,” went on Sid, bitterly. “I’ve a good mind to tell
him! Anything, sooner than be a party to rank treachery like that!”
“Scotty’s mother’s pretty hard up, ain’t she, Sid?” asked Big John
softly.
“Ye-es; a little discomfort, maybe, until he can land a good job. But
for that he’s going to turn this whole tribe out, to wander at the mercy
of our government—and you know what that is!”
“Sho! The mine’d pay enough to buy them a reservation big enough
to support them all in the style in which they is accustomed to!”
laughed Big John, weakly, “nawthin’ to it, son.”
“That’s what Scotty says,” replied Sid. “Some day it will pay enough,
maybe—if the promoters don’t skin him out of all his rights in the
mine first. But meanwhile, what about these Indians and those white
miners who will surely come here? Whisky, debauchery of their
women, degradation of their young men—isn’t it always the story
when our two races come together? How can you prevent it?” he
demanded.
Big John shook his head. It was all too perplexing to him, in his
present weakened state.