In the first graphic on this page, the writer shows us an "aerial view" (if you will) of the radii from the lines of sight from the Californian and the Titanic to their respective horizons.  However, he does not include the similar radii for his two proposed "mystery ships" in between.  Why not?  One explanation might be that their radii would quite possibly overlap with both the Californian's and the Titanic's - putting three of the four ships within sight of each other.

The second graphic below offers a different perspective on the same situation.  It also demonstrates that in this scenario, all three ships -- Californian, mystery ship "X" and mystery ship "Y" -- were able to sight the Titanic's distress rockets, and ignored them.  Some defense!