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Tom and Scout are on vacation with Tom’s two best friends, Carl and Bert, and his sisters, Ina and Miriam. On their rambles through the woods, the group of young people are stopped one day by customs officials. They are accused of being in league with a gang of criminals who are smuggling goods across the nearby German border. Scout’s reputation as a tracking dog has preceded him, and soon the young people are helping both the police and the customs officials. The mystery of the haunted castle, a coded message hidden under a tree, a gang of smugglers that can vanish at will, a burglary without clues — they all come together when Tom and Scout tumble over a four-hundred-year-old secret. Suddenly, however, Tom is no longer looking for adventure but fighting for his very life.

While Tom and his two friends are making plans for a vacation, Carl’s father announces that he has acquired a sailboat, as part of a business deal. The three boys see the chance for a very unusual holiday. Their peaceful sailing trip is sabotaged when they run into a gang of notorious carnival followers who put on sidewalk shows as a cover for more profitable sidelines. After a confrontation with the gang, the three sailors and Scout find themselves in trouble with the police. Their attempt to clear themselves leads to a wild chase through rivers, canals, and lakes. When at last the boys come face to face with the gang and its ruthless leader, they are stranded on an island in the middle of an isolated lake. In the showdown they are all alone — except for Scout.