The "Treasure Ship" is not a real ship, but a model constructed by Captain Bascom during ten years of enforced solitude on a South Sea island after the wreck of the "Golden Cloud." The treasure consists of a bag of gems found under the skeleton of an earlier castaway. When rescue finally comes, Bascom stows the treasure in the hold of his model and so carries it safely to his home, where he has long been mourned as dead. He arrives in time to cheer the last moments of his dying wife, who has been faithful to his memory. Bascom finds that his daughter, Beth, is now a comely young woman. Tom, her brother, falls under evil influence and commits a theft. His father comes to his aid. Bascom has taken care to conceal all knowledge of his treasure from the children. He decides to bequeath it to Beth and conceives the idea of leaving a chart describing its location with directions couched in misleading, nautical terms, which to his simple mind seem clear and explicit. Shortly afterwards, Bascom passes away. Tom discovers the chart and makes a copy of it. He shows it to Harley, his employer. The man induces Tom to embark for the South Sea, believing the instructions are to be taken literally. After Tom's departure, however, Harley discovers where the treasure is really hidden. Beth is mystified by the chart bequeathed her by her father. Harley suddenly appears with a note for $100 bearing Bascom's forged signature and demands payment. Beth, being unable to meet the demand, he offers to take the model in exchange. Dave, Beth' s sweetheart, arrives before the deal can be closed and gives her the money to take up the note. Later, the boy takes the model from the mantelpiece on which it is standing. He accidentally lets it drop. The treasure falls from its hiding place. The secret of the "Treasure Ship" lies revealed.