The story is narrated by the former tap boy of the Silver Slipper, a seaport tavern, recalling the events of a stormy night in 1845. The harsh weather serves as a backdrop for a grim narrative involving betrayal, greed, and death.

Inside the tavern, the narrator observes four men: Ezra Harper, the innkeeper; Captain John Gower, a dark and mysterious shipmaster; Jonas Hopkins, a lawyer from Salem; and Captain Starkey, a brutish seafarer with a notorious reputation. The narrator tends to their drinks while they converse about the harsh life at sea, touching on the recent execution of Tom Siler, Starkey’s former first mate, accused of mutiny. Starkey, already drunk, vehemently defends his actions, though others in the room exchange subtle doubts about his integrity.

The tension escalates when Betty, Starkey’s niece, bursts into the tavern, disheveled and pleading to escape her arranged marriage to the wealthy but older Joseph Harmer. She declares her love for Dick Hansen, a sailor presumed dead under mysterious circumstances. Starkey reacts violently, threatening her into submission, but is stopped by Gower, who intervenes and shields Betty from his wrath. Ezra Harper then escorts Betty upstairs to safety.

As the storm outside intensifies, Jonas Hopkins confronts Starkey with accusations. He reveals that Starkey had orchestrated Hansen’s disappearance by having him shanghaied onto a British whaler bound for distant seas. Furthermore, Starkey murdered Tom Siler to silence him, as Siler had discovered the truth about Hansen’s fate. Hopkins adds that Hansen, still alive, intends to return to America.

Starkey, cornered by these revelations, defiantly dismisses them, asserting his control over Betty’s future. Drunkenly boasting, he mocks Tom Siler’s death, raising a toast to the man he hanged. However, his bravado is cut short. Starkey’s attention is drawn to the frosted tavern window. There, he sees a shadowy image of Tom Siler’s face, framed by a spectral noose. Overcome with terror, Starkey collapses and dies instantly.

The story concludes with the narrator revealing that none of the other men saw what he did. The vision of Tom Siler’s ghost remains a haunting memory, serving as a grim testament to Starkey’s guilt and the uncanny forces that exacted retribution.