"But how did you know where to find Walter Crocker?"

"I suspected that he was a certain boy named Michael Gladwin," Mrs.

Masterbrook answered. "From various bits of evidence which came my way while I worked for Herman, I gathered that Jenny's child had been placed in the Glenhaven Orphan's Home under that name."

"I must say you have shown a distinct talent for detective work," Mr.

Nichols told her dryly. "You sent the anonymous letter to Michael at that address. Then what happened?"

"Nothing. There was no reply. That's all I know of the matter."

"Mrs. Masterbrook, I think you can tell us a great deal more," said Penny quietly. "For instance when did you first meet the man who calls himself Walter Crocker."

"I don't know what you're talking about," stammered the housekeeper.

"Either you explain everything or we'll take you to the police station," interposed Mr. Nichols.

"All right, I'll tell you exactly what happened," Mrs. Masterbrook agreed after a long moment of thought. "The man is a lawyer--his name is Jay Kline."

"Mr. Madden's missing partner!" exclaimed the detective.

"I don't know anything about him being missing," said the housekeeper crossly. "But he's made me plenty of trouble. I wish I had never set eyes on him."

"Tell us how you came to meet Jay Kline," the detective ordered.

"It was this way. I waited months to hear from the letter which I sent to the Glenhaven Home. When none came I decided that Michael Gladwin must be dead. I saw no reason in that case why I shouldn't profit a little myself. After all, I worked like a slave for Old Herman and he never paid me a living wage! I took the letters to a city law firm."

"So Mr. Madden is mixed up in this affair too?" asked the detective.

"I don't know anything about him," replied the housekeeper. "I met only Jay Kline. He told me to leave everything to him and that he would force Old Herman to pay me a good sum to get the letters back again."

"There is an ugly name for that sort of thing," said Mr. Nichols.

"Blackmail."

"I only meant to make Herman pay me a hundred dollars."

"The principle was exactly the same. I judge that Jay Kline being an unscrupulous rascal took matters out of your hands."

"Yes, the next thing I knew he came here and p.a.w.ned himself off as Walter Crocker. I tried to make him go away but he wouldn't. I didn't mean to do wrong, Mr. Nichols. You'll not send me to jail, will you?"

"That remains to be seen," replied the detective tersely. "For the time being you are to remain here in the cottage. Talk with no one."

"Yes, sir," murmured the housekeeper meekly.

The detective did not bother to tell the woman that Michael Gladwin and Michael Haymond were the same individual for he felt that the less she knew the easier it would be to carry out a plan which was forming in his mind.

Penny had supposed that her father would go directly to Herman Crocker, confronting him with the evidence. Instead, Mr. Nichols bided his time. He held several conferences with the Kendon police force.

During his frequent absences from the cottage, Penny, Susan and Michael were left to keep watch of Mrs. Masterbrook. The housekeeper was never allowed to talk with anyone by telephone or to greet persons who chanced to come to the door. While she had given her promise not to disclose anything, Mr. Nichols preferred to take no chance.

"This is the set-up," he told Penny as they held secret session. "I have arranged so that Jay Kline mysteriously recovered his package of letters----"

"But Dad----"

"It is the only way to trap him, Penny. With the letters in his possession, he'll meet Herman Crocker tonight by the footbridge. When Crocker pays over the hush money, police will arrest them both."

"I'd love to see the big roundup," said Penny eagerly.

"You shall," Mr. Nichols promised. "You've earned the right."

That night long before the appointed hour, Penny, her father and several plain-clothes men were waiting in the bushes for the arrival of Kline and Herman Crocker.

Jay Kline was the first to reach the footbridge. He appeared to be very nervous and smoked one cigarette after another. Now and then he would light a match and glance at his watch.

After a fifteen minute wait Herman Crocker's car was heard coming down the road. The automobile stopped some distance from the bridge, and Penny, who had keen eyes, saw that the old man had brought his grandson with him. However, he left the boy in the car and came toward the bridge alone.

"Well, did you bring the money?" asked Jay Kline.

"I could raise only half the sum you demanded," the old man whined.

"You have the letters with you?"

Jay Kline produced the packet.

"Oh, no you don't," he laughed as Herman tried to take the letters from him. "You'll get them only when you've paid over all the money."

"I'll give you what I have. Don't be too hard on me."

At a nod from Mr. Nichols, the plain-clothes men stepped from the bushes surrounding the pair.

"Tricked!" shouted Jay Kline.

Believing that Old Herman had betrayed him to the police, he struck savagely at the man and then brushing past one of the officers, ran down the ravine. Two policemen took after him and soon dragged him back. Herman Crocker had not attempted to escape.

"Take Kline down to Kendon," Mr. Nichols ordered tersely. "I'll look after Crocker myself."

"You've nothing on me," the old man muttered. "I was being blackmailed, that's all."

"It's no use trying to put up a front," the detective told him. "We know everything. This man was a blackmailer right enough, but the real Walter Crocker has a just claim to a large portion of your estate. A more serious matter is that you are wanted for the robbery of the Kirmenbach residence."

"I'm wanted for what?" gasped the old man.

"You are under suspicion for stealing a diamond necklace."

Until this moment Herman Crocker had been calm and quiet, but suddenly he flew into a violent rage, denying any part in the robbery.

"It's nothing but a frame-up!" he shouted.

"Maybe I did keep money that wasn't mine, but I never broke into anyone's house in all my life!"

"Did you or did you not have a toy lantern in your house?" asked Mr.

Nichols.