Back in Los Angeles, Chan visits Mr. Kim who tells the detective that he will make inquiries to see if he has any connections to any of the crew of the Honolulu Star.  Interviewed by the police, Ed Barker, the radio operator of the Honolulu Star, tells how he had radioed a general distress message to all ships in the area while receiving a response from Arturo Ramirez' ship offering assistance to the disabled ship.  To tow the ship to port, Ramirez charged $150,000 fee which the insurance company claims to be exorbitant.

Through Mr. Kim, Chan soon finds that Doris Carnavan had past connections with Arturo Ramirez.  Doris announces that her husband has gone to kill Ramirez at the latter’s apartment.  Just in time, Chan reaches the scene to stop Carnavan from carrying out his threat.  Chan explains that Ramirez certainly had a confederate aboard the Honolulu Star to help with the fraud scheme, and that Mrs. Carnavan was innocent of any collusion.

CONCLUSION:

Alone in Ramirez' apartment, Chan notes to Ramirez that there was probably no actual distress signal sent out from the Honolulu Star.  He also notes that Ramirez' ship was probably the only one contacted to tow the other ship back to port, thus allowing them to claim the large towing fee in the process.  Pulling a gun on Chan, Ramirez admits that Ed Barker, the radio operator of the Honolulu Star killed both the ship's steward and Mr. Flynn.  Fast work by Chan to disarm Ramirez and the timely arrival of Lt. Kovacs results in the arrest of Ramirez.

NOTES: The Secret of the Sea features the appearance of two veterans of the Charlie Chan film series.  Victor Sen Yung, who played Chan's Number Two Son, Jimmy, in many films, appears very briefly, and Philip Ahn, who was seen in two Chan movies, Charlie Chan in Honolulu and The Chinese Ring, performs in a featured role.