Elizabeth tells William that he is to go abroad for a year and they will run the Fraser Line until he returns. Meanwhile, James is sailing to Africa. A passenger, Mr Peterson, tells him a tale about untold riches in a very dangerous area marked by a white mast. They land and the ship stands off at a safe distance away from the reef. Peterson shows them that the mast sticking out of the sand is in fact that of a sunken galleon. It has gold and diamonds in its hold. He was there the previous year with two partners who died in the earlier attempt.