The _Vesta_ was cruising off the coast, awaiting orders from Walker, who therefore impressed a Costa Rican schooner, the _San Jose,_ for the purpose of carrying his command to Realejo, defending his action upon the ground that the same vessel had already been used to carry General Guardiola from Honduras to Nicaragua upon a hostile mission, thus forfeiting her neutral rights. The schooner was confiscated a year afterwards, by Walker, for sailing under a false register, and, being converted into a man-of-war and renamed the _Granada,_ played quite an important part in the climax of this tragedy.
In this critical hour of his fortunes, Walker's firmness was put to a severe test. A couple of dissolute Americans, who had been living for some time at San Juan, either through drunken folly or private spite, or for the purpose of plunder, set fire to the barracks on shore, for a time placing the whole town in danger of destruction. Walker, foreseeing that the act would be at once attributed to his men, took measures to punish the offenders. One of them escaped from the party detailed to execute him. The other, a gambler named Dewey, took refuge in the hold of a small boat attached to the stern of the _San Jose_. The desperado was well armed, and any attempt to capture him would have proved fatal to one or more of his assailants. So all the night Walker and a guard of men kept watch over the boat, ready to shoot or seize the villain if he tried to escape. At daybreak the schooner put to sea, towing astern the boat in which Dewey lay sheltered behind a poor native woman, his wretched mistress. The gambler, as everybody on board knew, was a dead shot, while his guard lay under the disadvantage of fearing to injure the woman if they fired. At last he rose to cut the boat's painter, and at that moment a rifle ball ended his career. The poor woman was wounded also, but not mortally. Walker takes pains to recount minutely the details of this incident, in order to vindicate the character of his followers. So severe a punishment was not lost upon those of his men who might be inclined to take a baser view of filibusterism than their leader did.
On the same day they met the _Vesta_ at sea, and embarking on board the old brig, arrived at Realejo on July 1st. Walker was justly incensed at the defection of his native allies at Rivas, and positively refused to continue in the Democratic service without better guarantees of support on emergency than the jealousy of the native commanders seemed likely to allow. The Falange remained several days at Leon, where the firmness of their leader alone averted a collision between them and the troops of Munoz, who had set the example of hostility and distrust towards the new-comers. At last, finding the Cabinet unable to agree upon a fixed policy (though a modified contract had been drawn up, by the terms of which the Falange were to be enlisted in the army of Nicaragua to the number of three hundred, and receive one hundred dollars a month per man, and five hundred acres of land each at the close of the war), Walker withdrew his men from Leon to Realejo. There he embarked them on the _Vesta,_ with the pretended purpose of departing for Honduras, and entering the service of President Cabañas. Nothing however, was farther from his intention. The Meridional department, commanding the Transit route, was the point at whose acquisition he steadily aimed. To maintain his foothold in Nicaragua he well knew he must keep open his communication with the United States and the recruits who were sure to flock thence to his standard.