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Brief Contents
PART I  Introduction
1 Five Foundations of Economics   4
2 Model Building and Gains from Trade   26

PART II  The Role of Markets

3 The Market at Work: Supply and Demand   70
4 Elasticity  110
5 Market Outcomes and Tax Incidence   150
6 Price Controls  184
7 Market Inefficiencies: Externalities and Public Goods   214

PART III  The Theory of the Firm

8 Business Costs and Production   244
9 Firms in a Competitive Market  274
10 Understanding Monopoly  308
11 Price Discrimination  338
12 Monopolistic Competition and Advertising  362
13 Oligopoly and Strategic Behavior  390

PART IV Labor Markets and Earnings

14 The Demand and Supply of Resources   430
15 Income, Inequality, and Poverty   466

PART V Special Topics in Microeconomics

16 Consumer Choice  504
17 Behavioral Economics and Risk Taking   540
18 Health Insurance and Health Care   562
19 International Trade  594

vii
Contents
Preface  xxiii
Acknowledgments  xxxvii
About the Authors   xIii

PART I  Introduction
Trade-offs 12
Opportunity Cost 13
Practice What You Know: The Opportunity Cost of Attending
College  14
Economics in the Real World: Breaking the Curse of the
Bambino: How Opportunity Cost Causes a Drop in Hospital
Visits When the Red Sox Play   15
Marginal Thinking 15

1 Five Foundations Economics in the Real World: Why Buying

and Selling Your Textbooks Benefits You at the
of Economics  4 Margin  16
Trade 17
Big Questions 6
Conclusion 20
What Is Economics? 6
Microeconomics and Macroeconomics 7 Snapshot: Five Foundations of Economics 21

What Are Five Foundations of Economics? 7 Economics for Life: Midcareer Earnings by Selected
Incentives 7 Majors 22

Practice What You Know: Microeconomics and Answering the Big Questions 23
Macroeconomics: The Big Picture   8 Concepts You Should Know   24
Questions for Review   24
Economics in the Real World: How Incentives Create
Unintended Consequences  10 Study Problems  24
Solved Problems  25
Economics in the Media: Incentives: Ferris Bueller’s
Day Off  12

ix
x / Contents

2 Model Building and Gains What Is the Trade-off between Having More Now and
Having More Later? 46
from Trade  26 Consumer Goods, Capital Goods, and
Investment 47
Big Questions 28
Economics in the Media: The Trade-off between the Short
How Do Economists Study the Economy? 28 Run and the Long Run: A Knight’s Tale  49
The Scientific Method in Economics 28
Practice What You Know: Trade-offs   50
Positive and Normative Analysis 29
Economic Models 30 Conclusion 50

Practice What You Know: Positive versus Normative Economics for Life: Failing to Account for Exogenous
Statements  32 Factors When Making Predictions 51
Answering the Big Questions 52
What Is a Production Possibilities Frontier? 33
The Production Possibilities Frontier and Concepts You Should Know   53
Opportunity Cost 34 Questions for Review   53
The Production Possibilities Frontier and Study Problems  53
Economic Growth 36 Solved Problems  55
Practice What You Know: The Production Possibilities Appendix 2A: Graphs in Economics 57
Frontier: Bicycles and Cars   38 Graphs That Consist of One Variable 57
What Are the Benefits of Specialization and Time-Series Graphs 59
Trade? 39 Graphs That Consist of Two Variables 59
Gains from Trade 39 The Slope of a Curve 61
Comparative Advantage 41 Formulas for the Area of a Rectangle and a
Finding the Right Price to Facilitate Trade 43 Triangle 64
Economics in the Real World: Why LeBron James Has Cautions in Interpreting Numerical Graphs 65
Someone Else Help Him Move   44 Concepts You Should Know   67
Practice What You Know: Opportunity Cost   45 Study Problems  67
Solved Problems  67
Economics in the Media: Opportunity Cost: Saving
Private Ryan  46
 Contents / xi

Part II The Role of Markets

3 The Market at Work: Supply and

Demand  70
Big Questions 72
What Are the Fundamentals of Markets? 72
Competitive Markets 73
Imperfect Markets 74
How Do Supply and Demand Interact to Create
Practice What You Know: Markets and the Nature of
Equilibrium 94
Competition  75
Supply, Demand, and Equilibrium 94
What Determines Demand? 75
Conclusion 97
The Demand Curve 76
Economics for Life: Bringing Supply and Demand
Market Demand 77
Together: Advice for Buying Your First Home   98
Shifts of the Demand Curve 78
Answering the Big Questions 99
Economics in the Media: Shifting the Demand Curve: The
Hudsucker Proxy  82 Concepts You Should Know   100
Questions For Review   100
Practice What You Know: Shift of the Curve or Movement
Study Problems  100
along the Curve 83
Solved Problems  103
What Determines Supply? 85
Appendix 3A: Changes in Both Demand and
The Supply Curve 85
Supply 104
Market Supply 87
Practice What You Know: When Supply and Demand Both Change:
Shifts of the Supply Curve 88 Hybrid Cars  107
Economics in the Real World: Why Do the Prices of New Economics in the Real World: Polar Vortex Economics   108
Electronics Always Drop?   92 Questions for Review   109
Practice What You Know: Ice cream: Supply and Study Problems  109
Demand  93 Solved Problem  109

4 Elasticity  110 Price Elasticity of Demand and Total

Revenue 126
Big Questions 112 Economics in the Media: Elasticity and Total Revenue:
D’oh! The Simpsons and Total Revenue   128
What Is the Price Elasticity of Demand, and What Are Its
Determinants? 112 Practice What You Know: Price Elasticity of
Determinants of the Price Elasticity of Demand  129
Demand 112
Snapshot: Price Elasticity of Demand 131
Computing the Price Elasticity of Demand 115
How Do Changes in Income and the Prices of Other
Economics in the Media: Price Elasticity of Demand:
Goods Affect Elasticity? 132
The Big Bang Theory  117
Income Elasticity 132
Graphing the Price Elasticity of Demand 119 Cross-Price Elasticity 133
xii / Contents

Economics in the Real World: Tennis, Anyone?   135 Conclusion 143

Practice What You Know: Income Elasticity   136 Economics for Life: Price Elasticity of Supply and
Demand: Buying Your First Car  144
What Is the Price Elasticity of Supply? 137
Determinants of the Price Elasticity of
Answering the Big Questions 145
Supply 137 Concepts You Should Know   147
The Flexibility of Producers 138 Questions for Review   147
Time and the Adjustment Process 138 Study Problems  147
Practice What You Know: The Price Elasticity of Solved Problems  149
Supply  140
How Do the Price Elasticities of Demand and Supply
Relate to Each Other? 141
Practice What You Know: Elasticity: Trick or Treat
Edition  142

5 Market Outcomes and Tax Why Do Taxes Create Deadweight Loss in Otherwise
Efficient Markets? 162
Incidence  150 Tax Incidence 163
Deadweight Loss 166
Big Questions 152
Economics in the Media: Taxing Inelastic Goods: “Taxman,”
What Are Consumer Surplus and Producer by the Beatles   167
Surplus? 152
Consumer Surplus 153 Economics in the Real World: The Short-Lived Luxury
Using Demand Curves to Illustrate Consumer
Tax  173
Surplus 153 Balancing Deadweight Loss and Tax Revenues 174
Producer Surplus 155 Snapshot: Unusual Taxes 176
Using Supply Curves to Illustrate Producer
Practice What You Know: Deadweight Loss of Taxation: The
Surplus 156
Politics of Tax Rates   177
Practice What You Know: Consumer and Producer Surplus:
Conclusion 177
Trendy Fashion  158
Answering the Big Questions 178
When Is a Market Efficient? 158
The Efficiency-Equity Debate 160 Economics for Life: Excise Taxes Are Almost
Impossible to Avoid   179
Economics in the Media: Efficiency: Old School  161 Concepts You Should Know   180
Practice What You Know: Total Surplus: How Would Lower Questions for Review   180
Consumer Income Affect Urban Outfitters?   162 Study Problems  180
Solved Problems  183

6 Price Controls  184 The Effect of Price Ceilings 188

Price Ceilings in the Long Run 190
Big Questions 186 Economics in the Media: Price Ceilings: Moscow on the
When Do Price Ceilings Matter? 186 Hudson  191
Understanding Price Ceilings 186
 Contents / xiii

Practice What You Know: Price Ceilings: Concert Economics in the Real World: Wage Laws Squeeze South
Tickets  192 Africa’s Poor  203
What Effects Do Price Ceilings Have on Economic The Minimum Wage Is Often Nonbinding 204
Activity? 192 Snapshot: Minimum Wage: Always the Same? 205
Rent Control 192
Economics in the Real World: A Sweet Deal, If You
Price Gouging 194 Can Get It   206
Practice What You Know: Price Ceilings: Student Rental Practice What You Know: Price Ceilings and Price
Apartments  196 Floors: Would a Price Control on Internet Access Be
When Do Price Floors Matter? 196 Effective?  207
Understanding Price Floors 197
Conclusion 209
The Effect of Price Floors 197
Answering the Big Questions 209
Price Floors in the Long Run 200
Economics for Life: Price Gouging: Disaster
Practice What You Know: Price Floors: Preparedness  210
Fair-Trade Coffee  201
Concepts You Should Know   211
What Effects Do Price Floors Have on Economic Questions for Review   211
Activity? 202 Study Problems  211
The Minimum Wage 202 Solved Problems  212

7 Market Inefficiencies: Externalities Common Resources and the Tragedy of the

Commons 232
and Public Goods  214 Possible Solutions to the Tragedy of the
Commons 234
Big Questions 216
Economics in the Real World: Deforestation in
What Are Externalities, and How Do They Affect Haiti  235
Markets? 216
Practice What You Know: Common Resources: Why do
The Third-Party Problem 216
Tailgaters Trash Parking Lots?   236
Economics in the Real World: Express Lanes Use Dynamic
Economics in the Media: Tragedy of the Commons: South
Pricing to Ease Congestion   220
Park and Water Parks   236
Practice What You Know: Externalities: Fracking   223
Economics for Life: Buying Used Is Good for Your
What Are Private Goods and Public Goods? 224 Wallet and for the Environment   237
Private Property 224
Conclusion 237
Private and Public Goods 226
Economics in the Real World: Group Work 228 Answering the Big Questions 238
Concepts You Should Know   239
Practice What You Know: Public Goods: Are Parks Public
Goods?  230 Questions for Review   239
Study Problems  239
What Are the Challenges of Providing Nonexcludable Solved Problems  241
Goods? 231
Cost-Benefit Analysis 231
Economics in the Real World: Internet Piracy   232
xiv / Contents

Part III The Theory of the Firm

8 Business Costs and

Production  244
Big Questions 246
How Are Profits and Losses Calculated? 246
Calculating Profit and Loss 246
Explicit Costs and Implicit Costs 247 Costs in the Long Run 261
Accounting Profit versus Economic Profit 248 Snapshot: Bigger Is Not Always Better 265
Practice What You Know: Accounting Profit versus Economics in the Media: Economies of Scale The Big Bang
Economic Profit: Calculating Summer Job Profits   250 Theory : The Work Song Nanocluster   266
How Much Should a Firm Produce? 251 Conclusion 266
The Production Function 251 Practice What You Know: Marginal Cost: The True Cost of
Diminishing Marginal Product 253 Admission to Universal Studios   267
What Costs Do Firms Consider in the Short Run and the Answering the Big Questions 268
Long Run? 254
Economics for Life: How Much Does It Cost to Raise
Practice What You Know: Diminishing Returns: Snow Cone a Child?  269
Production  255 Concepts You Should Know   270
Costs in the Short Run 256 Questions for Review   270
Economics in the Media: Costs in the Short Run: Study Problems  270
The Office  261 Solved Problems  273

9 Firms in a Competitive Market  274 The Firm in the Short Run 284

The Firm’s Short-Run Supply Curve 286
Big Questions 276 The Firm’s Long-Run Supply Curve 286

How Do Competitive Markets Work? 276 Economics in the Real World: Blockbuster, Changes in
Technology, and the Dynamic Nature of Change   288
Economics in the Real World: Aalsmeer Flower
Auction  278 Sunk Costs 289

How Do Firms Maximize Profits? 278

Practice What You Know: The Profit-Maximizing Rule: Show
Me the Money!   290
Practice What You Know: Price Takers: Mall Food
Courts  279 Snapshot: Sunk Costs: If You Build It, They Will
The Profit-Maximizing Rule 279
Come 291

Economics in the Media: Competitive Markets: The What Does the Supply Curve Look Like in Perfectly
Simpsons: “Mr. Plow”   282 Competitive Markets? 292
The Short-Run Market Supply Curve 292
Deciding How Much to Produce in a Competitive
Market 282 The Long-Run Market Supply Curve 293
 Contents / xv

How the Market Adjusts in the Long Run: An Concepts You Should Know   303
Example 295 Questions for Review   303
Economics in the Media: Entry and Exit: I Love Study Problems  303
Lucy  299 Solved Problems  306
Practice What You Know: Long-Run Profits: How Much Can
a Firm Expect to Make?   300
Conclusion 300
Answering the Big Questions 301
Economics for Life: Tips for Starting Your Own
Business  302

10 Understanding Monopoly  308 What Are the Problems with, and Solutions for,
Monopoly? 322
Big Questions 310 The Problems with Monopoly 323

How Are Monopolies Created? 310 Practice What You Know: Problems with Monopoly: Coffee
Natural Barriers 310 Consolidation  326
Government-Created Barriers 311 Economics in the Real World: New York City Taxis   327
Economics in the Real World: Merck’s Zocor   313 Solutions to the Problems of Monopoly 328

How Much Do Monopolies Charge, and How Much Do Economics in the Media: The Problems of Monopoly: One-
They Produce? 313 Man Band  328
Practice What You Know: Monopoly: Can You Spot the Snapshot: The Demise of a Monopoly 331
Monopolist?  314 Conclusion 333
Economics in the Media: Barriers to Entry: Forrest Answering the Big Questions 333
Gump  315 Economics for Life: Playing Monopoly Like an
The Profit-Maximizing Rule for the Economist  334
Monopolist 316 Concepts You Should Know   335
Economics in the Real World: The Broadband Questions for Review   335
Monopoly  320 Study Problems  335
Practice What You Know: Monopoly Profits: How Much Do Solved Problems  337
Monopolists Make?  322

11 Price Discrimination  338 The Welfare Effects of Price Discrimination 344

Economics in the Real World: Santa Fe, New Mexico: Using
Big Questions 340 Negative Incentives as Price Discrimination   345
What Is Price Discrimination? 340 Economics in the Media: Perfect Price Discrimination:
Conditions for Price Discrimination 340 Legally Blonde  347
One Price versus Price Discrimination 341
xvi / Contents

Economics in the Real World: Outlet Malls—If You Build It, Conclusion 356
They Will Come   348 Answering the Big Questions 357
Practice What You Know: Price Discrimination: Taking Economics for Life: Outsmarting Grocery Store
Economics to New Heights   349 Tactics 358
How Is Price Discrimination Practiced? 351 Concepts You Should Know   359
Price Discrimination at the Movies 351 Questions for Review   359
Price Discrimination on Campus 352 Study Problems  359
Snapshot: Now Playing: Economics! 354 Solved Problems  360

Practice What You Know: Price Discrimination in Practice:

Everyday Examples  355
Economics in the Media: Price Discrimination: Extreme
Couponing  356

12 Monopolistic Competition Why Firms Advertise 376

Advertising in Different Markets 376
and Advertising  362
Economics in the Media: Advertising: E.T.: The Extra-
Big Questions 364 Terrestrial  379

What Is Monopolistic Competition? 364 Snapshot: Advertising and the Super Bowl 380
Product Differentiation 365 Economics in the Real World: What Happened to
Practice What You Know: Product Differentiation: Would Sears?  381
You Recognize a Monopolistic Competitor?   366 The Negative Effects of Advertising 381

What Are the Differences among Monopolistic Practice What You Know: Advertising: Brands versus
Competition, Competitive Markets, and Generics  383
Monopoly? 367 Economics in the Real World: The Federal Trade
Monopolistic Competition in the Short Run and Commission versus Kevin Trudeau   385
the Long Run 367
Monopolistic Competition and Competitive
Economics for Life: Product Differentiation: Would
Markets 370 You Buy a Franchise?   386
Monopolistic Competition, Inefficiency, and Conclusion 386
Social Welfare 372 Answering the Big Questions 387
Practice What You Know: Markup: Punch Pizza Concepts You Should Know   388
versus Pizza Hut   374 Questions for Review   388
Why Is Advertising Prevalent in Monopolistic Study Problems  388
Competition? 375 Solved Problems  389
Economics in the Media: Advertising: Super Bowl
Commercials  375
 Contents / xvii

13 Oligopoly and Strategic Sequential Games  409

Behavior  390 A Caution about Game Theory 410
Practice What You Know: Dominant Strategy: To Advertise or
Big Questions 392 Not—That Is the Question!   411
What Is Oligopoly? 392 How Do Government Policies Affect Oligopoly
Measuring the Concentration of Industries 392 Behavior? 412
Collusion and Cartels in a Simple Duopoly Antitrust Policy 413
Example 394 Predatory Pricing 413
Economics in the Real World: OPEC: An International Practice What You Know: Predatory Pricing:
Cartel  397 Price Wars  415
Economics in the Media: Nash Equilibrium: A Brilliant What Are Network Externalities? 416
Madness and A Beautiful Mind  398 Practice What You Know: Examples of Network
Oligopoly with More Than Two Firms 399 Externalities  417
Practice What You Know: Oligopoly: Can You Recognize the Economics for Life: Should You Buy Now or
Oligopolist?  399 Wait?  418
How Does Game Theory Explain Strategic Conclusion 418
Behavior? 400
Answering the Big Questions 419
Strategic Behavior and the Dominant
Strategy 400 Concepts You Should Know   421
Duopoly and the Prisoner’s Dilemma 402 Questions for Review   421
Study Problems  421
Economics in the Media: Prisoner’s Dilemma: Murder by
Numbers  403 Solved Problems  424
Advertising and Game Theory 404 Appendix 13A: Two Alternative Theories of Pricing
Behavior 425
Snapshot: Airlines in the Prisoner’s Dilemma 405
The Kinked Demand Curve   425
Economics in the Real World: The Cold War   406
Price Leadership   425
Escaping the Prisoner’s Dilemma in the Long
Concepts You Should Know   427
Run 406
Study Problems  427
Economics in the Media: Prisoner’s Dilemma:
The Dark Knight  408
xviii / Contents

Part IV Labor Markets and Earnings

Change and Equilibrium in the Labor

Market 446
Outsourcing 446
Economics in the Real World: Pregnancy Becomes the
Latest Job to Be Outsourced to India   448
Monopsony 451
Economics in the Real World: Pay and Performance in
Major League Baseball   451
14 The Demand and Supply of
What Role Do Land and Capital Play in
Resources  430 Production? 452

Big Questions 432 Practice What You Know: Labor Supply: Changes in Labor
Supply  453
What Are the Factors of Production? 432 The Market for Land 453
Practice What You Know: Derived Demand:
Economics in the Media: Value of the Marginal Product of
Tip Income  433
Labor: Moneyball  454
Where Does the Demand for Labor Come From? 433 The Market for Capital 456
The Marginal Product of Labor 434 When to Use More Labor, Land, or Capital 456
Changes in the Demand for Labor 436
Snapshot: Outsourcing 457
Practice What You Know: Value of the Marginal Product of
Economics in the Real World: Skilled Work without the
Labor: Flower Barrettes   438
Worker  458
Where Does the Supply of Labor Come From? 438
Conclusion 459
The Labor-Leisure Trade-off 439
Changes in the Supply of Labor 440 Practice What You Know: Bang for the Buck: When to Use
More Capital or More Labor   460
Economics in the Media: Immigration: A Day without a
Mexican  442 Answering the Big Questions 461

Practice What You Know: The Labor Supply Curve: What Economics for Life: Will Your Future Job Be
Would You Do with a Big Raise?   443 Outsourced?  462
Concepts You Should Know   463
What Are the Determinants of Demand and Supply in the Questions for Review   463
Labor Market? 444
Study Problems  463
How Does the Market for Labor Reach
Equilibrium? 444 Solved Problems  465

Economics in the Real World: Where Are the

Nurses?  445
 Contents / xix

15 Income, Inequality, Snapshot: Income Inequality around the World 488

and Poverty  466 Practice What You Know: Income Inequality: The Beginning
and End of Inequality   489
Big Questions 468 Economics in the Media: Income Inequality: Capital in the
What Are the Determinants of Wages? 468 Twenty-First Century  490
The Non-Monetary Determinants of How Do Economists Analyze Poverty? 491
Wages 468 The Poverty Rate 491
Economics in the Real World: Does Education Poverty Policy 492
Really Pay?  469 Economics in the Media: Poverty: The Hunger Games
Wage Discrimination 472 (2008-2010)  494
Practice What You Know: Efficiency Wages: Which Company Problems with Traditional Aid 495
Pays an Efficiency Wage?   473 Economics in the Real World: Muhammad Yunus and the
Economics in the Real World: The Effects of Beauty on Grameen Bank  495
Earnings  475 Practice What You Know: Samaritan’s Dilemma:
Economics in the Media: Wage Discrimination: Does Welfare Cause Unemployment?   496
Anchorman: The Legend of Ron Burgundy  478 Economics for Life: Donating to Charity More
Winner-Take-All 478 Effectively  497
What Causes Income Inequality? 479 Conclusion 498
Factors That Lead to Income Inequality 479 Answering the Big Questions 498
Economics in the Real World: 5 Pillar  481
th
Concepts You Should Know   500
Measuring Income Inequality 481 Questions for Review   500
Income Mobility 487 Study Problems  500
Solved Problems  501

Part V Special Topics in Microeconomics

Economics in the Real World: Happiness Index   507

Total Utility and Marginal Utility 507
Diminishing Marginal Utility 509
Practice What You Know: Diminishing Marginal
Utility  509
How Do Consumers Optimize Their Purchasing
Decisions? 510
16 Consumer Choice  504 Consumer Purchasing Decisions 511
Snapshot: The OECD Better Life Index 513
Big Questions 506 Marginal Thinking with More Than Two
How Do Economists Model Consumer Goods 514
Satisfaction? 506
xx / Contents

Price Changes and the Consumer Optimum 514 The Budget Constraint 528
Economics in the Real World: Would You Pay More Than $50 Properties of Indifference Curves 529
for a Drink at Starbucks?  516 Indifference Curves Are Typically Bowed
Inward 529
Practice What You Know: Consumer Optimum   516
Indifference Curves Cannot Be Thick 530
What Is the Diamond-Water Paradox? 517 Indifference Curves Cannot Intersect 531
Economics in the Media: The Diamond-Water Paradox: Super Extreme Preferences: Perfect Substitutes and
Size Me  519 Perfect Complements 532
Conclusion 519 Using Indifference Curves to Illustrate the Consumer
Answering the Big Questions 520 Optimum 534
Using Indifference Curves to Illustrate the
Economics for Life: The economics of Romance: When
Real-Income and Substitution Effects 535
Do You Know You’ve Found the “Right” Person?   522
Separating the Substitution Effect from the
Concepts You Should Know   523 Real-Income Effect 536
Questions for Review   523
Conclusion 538
Study Problems  523
Concepts You Should Know   539
Solved Problems  525
Questions for Review   539
Appendix 16A: Indifference Curve Analysis 526 Study Problems  539
Indifference Curves 526 Solved Problem  539
Economic “Goods” and “Bads” 526

17 Behavioral Economics and What Is the Role of Risk in Decision-Making? 552

Preference Reversals 552
Risk Taking  540 Economics in the Media: Preference Reversals:
Big Questions 542 “Mine”  554
Prospect Theory 555
How Do Economists Explain Irrational Behavior? 542
Misperceptions of Probabilities 543 Practice What You Know: Risk Aversion: Risk-Taking
Behavior  556
Economics in the Real World: New Behavioral Economics
Helps to Explain Stock Price Volatility   545 Economics in the Real World: Why Are There Cold Openings
at the Box Office?   556
Practice What You Know: Gambler’s Fallacy or Hot Hand
Fallacy? Patterns on Exams   546 Conclusion 557
Inconsistencies in Decision-Making 546 Economics for Life: Bounded Rationality: How to
Economics in the Media: Misperceptions Guard Yourself against Crime   558
of Probabilities: p  547 Answering the Big Questions 558
Economics in the Real World: Are You An Organ Concepts You Should Know   560
Donor?  548 Questions for Review   560
Study Problems  560
Snapshot: Opt-Out Is Optimal 549
Solved Problems  561
Judgments about Fairness 550
Economics in the Real World: Unfair Pay Matters to
Capuchin Monkeys  552
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 “At the end of next week,” he said as though taking a sudden
decision.
“Thank God for that,” she said, and they parted for the night.
 Chapter X.
In the Churchyard
Ena Sefton was on her way to the village church on Sunday
morning. It was the old church which had stood there for centuries,
long before such a thing as a bungalow town was heard of. She was
rather late and the bell was already ringing, so she quickened her
pace. A long avenue of trees led up to the old churchyard, and as
she rounded the corner she saw Halley walking slowly in front of her,
and somehow it came as a shock to her, for she had not associated
him with church-going. He turned and when he saw her he raised
his hat with a smile of welcome.
“I did not know that you usually patronised our village church,”
she said.
“I am afraid I cannot claim to do much in that line,” he answered
“but I really came here for another object; I am interested in old
inscriptions, and I am told there are some in this churchyard.”
They walked along together, and passed through the Lych Gate.
“Are you coming in?” she asked.
“I hardly think so, if you will not think it rude of me, but I will wait
in the churchyard for you if I may.”
When the simple service was over, she found him standing at the
corner of the churchyard where the Reckavile family vault was
situated. He was deep in thought and did not look up until she
touched him lightly, then he gave a start.
“You were looking at the graves of the past Lord Reckaviles?” she
asked.
His face clouded over. “It is an ugly record,” he said. In front of
them was the tomb of the last Lord Reckavile, a simple stone tablet
giving his name, and age, and the date of his death, and beneath,
the sombre words “Vengeance is mine and I will repay.” Beyond that
was the tomb of his father drowned at sea, whose body had been
washed ashore.
“Age thirty-two,” he said in a puzzled tone, “it is strange.” And he
turned with her and walked by her side without speaking.
“Mr. Halley,” she said to break the silence, “you will please forgive
me asking this question, but you seem so entirely alone, I have
often wondered whether you have any relations living. You don’t
mind, do you?”
“Not in the least, Miss Sefton,” he replied with that peculiar sad
smile of his “I can answer the question very simply. I have no
relations, and no friends.”
“That is unkind of you,” she said “surely you count us as friends.”
“I would like to think so,” he said “but we have only known each
other a short time.”
“Do you think friendship must necessarily be a growth of years?”
she asked.
“On the contrary,” he replied, “I believe that when people meet for
the first time they are either friends or not, there is a sort of
instinctive affinity or repulsion, although it may not be felt at the
moment.”
She looked at him with a roguish smile. “And which was it in my
case?” she said.
He did not answer to her mood. “You are on dangerous ground,
you do not know who you are taking as a friend.” There was almost
a note of warning in his voice. He had always been reserved and
self-contained, but of a sudden he stopped and said with emotion:
“Would to God I had never come to England!”
She was startled, for it was the first revelation of what had been
dimly at the back of her mind, that he was not entirely English.
He collected himself, and then walked on.
“I am sorry, for forgetting myself, perhaps I ought to tell you I was
born in Italy and my mother was Italian, although my father was
English. I shall be going back soon, when my work is over.”
“Your work!” she said.
 “I have a task to accomplish,” he said in a solemn tone “and I
cannot allow my thoughts to stray to—other things. What am I to do
with love or the lighter side of life?” It was almost as though he was
talking to himself, but a deep blush spread over Ena’s face, and she
turned her head away.
As they emerged from the churchyard avenue the village was
spread out below them in all its hideousness, like some great Fair,
when the show is over. As they came to the foreshore, a figure rose
over the bank from the beach. It was Fletcher, and a look of
annoyance crossed his face when he saw Halley, although he tried to
hide it.
“Good morning, Miss Sefton, I suppose you have been to church. I
should hardly have thought that was in Mr. Halley’s line,” he said
with a sneer.
“Right,” said Halley. “I did not go to church, but I met Miss Sefton
there. I have been looking at your interesting graveyard.”
“What a cheerful subject,” said the other. “I am not much
interested in tombstones myself.”
Halley darted a keen glance at him. “They say,” he said, “there are
sermons in stones, there may be also stories on tombstones of even
greater interest and value.”
“Well, I prefer something a little more amusing,” said Fletcher, and
there was something in his tone which seemed to anger Halley.
Very quietly he said, “I suppose the investigation of crime is an
amusing subject.”
Fletcher stopped dead, and his face went white. “Crime!” he said
“what on earth do you mean?”
Ena was looking from one to the other of the two men.
“Only this,” said Halley lighting a cigarette, “that as you are a
Scotland Yard detective, I suppose most of your life is spent in that
way.”
“A Scotland Yard detective,” blurted out Fletcher.
Halley held up his hand. “Please do not take the trouble to deny it.
I know you were sent down by Scotland Yard to investigate the
murder.”
 Fletcher’s mind was in a whirl, it was obviously impossible to deny
the statement made in such an emphatic tone.
“How on earth do you know anything about me?” said he
unguardedly.
Halley shrugged his shoulders.
“What about you?” said Fletcher angrily. “Who and what are you?
You have come here from no one knows where, and have no
apparent occupation except loafing about and enquiring into other
people’s business, and imposing on trusting girls.”
A look of contempt was on Ena’s face.
“Is it true, Mr. Fletcher? Are you really a detective?”
“It is quite true, Miss Sefton, though how your friend became
acquainted with this, I do not know.” There was an unpleasant
emphasis on the word “friend.” “I suppose you have no objection to
detectives?”
“A man’s business is his own,” she replied with spirit, “but I do not
like anyone who goes under false pretences.”
Fletcher’s usual self-control was deserting him. He saw the interest
which this girl might have had in him gone for ever.
“False pretences,” he repeated “and what about him? Who is he?
For all you know he may be the criminal we are after.”
“If you are going to say things like that,” she replied, “perhaps we
had better say good-day,” and she turned away without another
word.
Halley gave one glance at the angry detective and then followed
her.
“All right, my boy!” said Fletcher to the departing couple. “You’ve
scored one point, but wait until I have got a little more information
and then we will see what opinion Miss Ena will hold of you!”
Ena walked in silence for a while.
“How horrible,” she said at length. “That man came down with me
by the same train, and scratched up an acquaintance. I suppose he
was trying to ‘pump’ me, as they say; that is why he came the other
night, with the police sergeant. I will never trust anyone again.”
Halley looked at her for a moment.
 “Did I not tell you not to make friends at sight?” he said bitterly,
but she turned quickly to him.
“Oh! I am so sorry, I did not mean that, of course I was not
referring to you.”
“But why not? You know as little about me as you did about
Fletcher.”
She was confused, and took refuge in his own words.
“But then you said friendship was an instinctive thing. I never took
to Mr. Fletcher, though I knew nothing against him, and he was a
stranger.”
The lunch at the Sefton’s bungalow was cheerful, in spite of the
cloud hanging over the affairs of all three. Jack was a changed being
now that he had taken his resolve, and listened with interest to the
tales of foreign travel with which Halley regaled them, for Halley was
in a mood they had never seen before. His usual gravity was gone,
and they realised what a wonderful talker he could be when he liked,
and in the days which followed they looked back on this meal with
especial pleasure. The men had just settled to smoke, when there
came a hasty knock at the door. Southgate was standing outside
panting, for he had walked fast, and his face was red, but there was
an anxious look in his eyes.
“Come away at once, Mr. Halley,” he said urgently. “I have
something to tell you.”
With apologies Halley went outside.
“I am sorry,” he said when he returned to the others “I must go
with Southgate, and I am afraid I shall have to go to London to-
morrow. I will get back as soon as I can.”
 Chapter XI.
The Meaning of “The Red Cote”
The following Saturday Sefton was waiting in his bungalow, and
Ena was with him, rather nervous, but glad that the shadow was to
be lifted at last. Jack had written to Andrews to tell him that he was
going to make an explanation with regard to The Red Cote, and
asked him to be present. Fletcher he had deliberately ignored,
though he felt certain that he would turn up. Halley had not returned
from London, and there had been no news of him.
Andrews arrived punctually to the minute, and as was expected,
Fletcher was with him. Sefton found seats for them, and began in
quiet tones, different indeed from the irritable manner of the past
weeks.
“You asked me the other day, what I was doing at The Red Cote. I
am now in a position to tell you, thank God. When my father died, I
had almost finished my course at the Hospital, and was within sight
of being a qualified doctor. I was unable to go on through lack of
funds. Before he died, my father entrusted a secret to me. He had
been carrying out researches in certain obscure nervous diseases.
My father firmly believed in Psychoanalysis, and had also a special
appliance of an electrical nature with which he was experimenting.
“Not being qualified, I could not practice openly, nor did I wish to
reveal to the medical world the exact nature of the process, until I
had thoroughly tested it. You will remember, Ena,” he said turning to
his sister, “that when we first came here, I was writing a large
number of letters, and you thought that I was trying to get work of
some sort. My real object was to get hold of patients, who wished to
be treated privately. I was obliged to take a bungalow for the
treatment, and was perhaps over-anxious to keep the matter secret,
so constructed a room in which I could work, in the centre of the
bungalow. I rather foolishly thought that if the place was lighted up
it would be less conspicuous than if it was in darkness, but it seems
to have called attention to it instead.
“I could not bring them here as they were practically lunatics.
“Among my patients was Summers the bank manager from
Tunbridge Wells.” The listeners gave a start of surprise.
“Summers was in a curious state when he came to me,” Sefton
continued. “He was not mad, but was on the border-line, and I was
afraid that he would commit suicide. He should have told his people,
but I could see that the slightest suggestion of such a thing would
have spelt disaster. He was convinced that he was dead. The
treatment was doing him good, and I had hopes that he would make
a complete recovery, when you got busy over the so-called mystery,
and I had to exercise the utmost caution. Then Summers
disappeared.”
Andrews lifted his eyebrows and glanced at Fletcher.
Sefton was quick to notice it. “No,” he said. “I should not have
been quite such a fool as to tell you this story, if I could not produce
the man. He will be here presently, but for obvious reasons an
explanation was first necessary.”
“When you called on me I had no more idea where he was than
you had, and I could see that if he had committed suicide, my
position would be black.”
Fletcher’s face was suffused with red, and he banged the table.
“I see it all now,” he said. “Summers and Halley are one and the
same man. That’s what he was doing here.”
There was a look of contempt on the face of Sefton.
“If that’s what a detective is paid for I don’t think much of the
service. Wasn’t Halley here last week when you came to ask
questions? If I am not mistaken here is Summers himself.”
In answer to a knock, Ena went to the door, and admitted a tall
man answering exactly to the description given in the papers and on
the wireless of the missing man. He bowed to the company, and
shook hands with Sefton.
“This is Mr. Summers,” said he introducing him to the others.
 Summers passed a nervous hand over his eyes, and said “I am
afraid I can’t talk much. I am not very well, but thanks to Mr. Sefton
I am making a wonderful recovery. He has told me I was wrong to
run away, but I had dreams and was haunted; now I can see things
better.”
Ena went to him with the instinct of a true woman. “My brother
has been telling us all about you. You will be all right now; you are
among friends, and must come and stop here till you are well.”
A look of deep gratitude come to his thin face, and he seemed
calmer and more self-possessed.
“Thank you,” he said. “I have entire confidence in your brother,
and I will do whatever he wishes.”
So here was the explanation of The Red Cote, commonplace as all
explanations are when you hear them.
Fletcher felt that he had cut a poor figure, and was eager to
retrieve his reputation; he had another shot in his locker, but to use
this would extinguish his last chance to stand well with Ena. He
glanced at her and hesitated. Andrews rose to his feet.
“Your story has been quite interesting, and as far as I am
concerned, convincing,” he said holding out his hand. “You could not
have done otherwise than you have done.”
“One moment,” said Fletcher, having made his decision. “Mr.
Sefton, can you explain with equal ease how it was that you
changed a five pound note at the Black Horse with Southgate which
was one of those stolen from Lord Reckavile?”
There was an ominous silence in the room; Ena’s eyes flashed,
while Andrews looked at the floor, marvelling at the crudity of the
question, but Sefton remained calm.
“If you had asked your question in a less offensive manner, I
would have answered you; now you can find out for yourself.”
He saw the look of pain in Ena’s eyes, and remembered how
worried she had been about the money.
“But for my sister’s sake I will tell you,” he added. “I have only
changed one such note at the Black Horse, and that was for old
Giles. He asked me whether I could change it for him, and I did so.
You can ask him yourself.”
 “Humph,” said Fletcher, “we shall see about that,” and he rose.
“Come on, Andrews, we shall do no more with these people.”
 Chapter XII.
The Unknown Speaker
The whole case was getting on Fletcher’s nerves. He had paid a
visit to Giles, to follow up the clue about the money.
The old man was quite straightforward; it was true, he had asked
Sefton to change a five pound note for him, which had been given
him by Lord Reckavile as wages. When his Lordship was away he
never sent any money, but when he came home, he had been in the
habit of giving the old servant quite large sums to carry on with.
It was quite possible, and there was nothing to be said about this,
but yet Fletcher felt somehow that all these people were combining
to thwart his efforts and were secretly laughing at him.
What was Halley doing in Portham? And what was Southgate up
to in his nocturnal visit to the castle, for he was sure that that was
where he had gone in the night, though he had no definite proof.
Halley had returned from London, so much he had learnt, and was
again visiting the Sefton’s bungalow, where Summers was now
openly staying as a paying guest, under Sefton’s care.
He returned from a troubled walk; his stay at Portham was already
lasting too long, and hints from Headquarters had been thrown out
that if he could not manage the job, he had better return.
He had allowed his thoughts to stray to the fair grace of Ena
Sefton, only to have the cup dashed to the ground by the revelation
of his profession, as if there was anything to be ashamed of in being
a detective. It was better than an unknown adventurer anyhow, he
kept on telling himself in self pity.
He arrived at the Club in a despondent mood, and was met by
Brown, the constable.
The latter had an air of mystery about him.
 “Well, what is it, Brown,” he asked “anything fresh?”
“Yes, sir,” said the other, glancing round.
“It’s all right, you may talk here,” said Fletcher testily.
“Well, sir, you remember that I told you that when I heard that Mr.
Halley speaking it reminded me of something. I have been worrying
over it, and it has all come back to me now. I am quite certain that it
was he who was in the room with Lord Reckavile when he was
murdered. It was his voice we heard. It came through two doors and
was muffled, but there is no mistaking his tone.”
Fletcher started back; here was news indeed.
“Are you absolutely certain, Brown?” he said “remember this is of
the very utmost importance, you must not make a mistake.”
“I am certain,” said the constable doggedly.
“And I’ll tell you another thing, sir, when I found those two men in
the library, although I only had a glimpse, I am nearly positive one
of them was Halley.”
“Can you swear to that?” said Fletcher gripping the other’s arm in
his excitement.
“No, sir, I can’t swear to that, only in my own mind I am pretty
sure.”
“Well, we have something to go upon at last,” said Fletcher. “Not a
word of this to anyone. We must get some more details. I knew that
fellow with his superior manners and hypocritical ways was a crook,
though why he should make love to a penniless girl like Ena Sefton,
is beyond me.”
But if he had hit at last on the real criminal, there was something
still hidden. What could be more stupid than for a man to commit a
murder, and then remain on in the village for no reason, unless …
He recalled to his mind cases where men who had fallen in love
had committed every kind of indiscretion and jeopardised their
safety. He had on his journeyings visited the Castle of Blois, and
seen the spot where the Duc de Guise had stood eating prunes,
while waiting for the summons of the King which had been a call to
death, and all because in spite of warnings, he had remained on, in
attendance on his mistress.
Giles, when he was examined was less sure than the constable.
 “I couldn’t be sartin’,” he kept on repeating, “I were that flustered,
and I be ’ard of ’earing. No I dun’no as ’ow I cud swear to any voice
for sartin’.”
Fletcher was cute enough to see that such evidence was
worthless, and that the stubborn old man would not alter his
evidence in the Box.
But a startling new piece of information came to hand by accident,
when he returned to the Club, and fell into conversation with the
steward.
Their talk turned on Sefton, and the mystery which was no longer
a mystery.
“Yes, sir,” said the steward, “I knew he was a doctor. He brought a
gentleman in here sometime ago, who was bleeding like a stuck pig.
I held the basin for him, and the way he bound him up showed me
he had some experience.”
“When was this?” said Fletcher without suspecting anything
important. The other laughed; “I can easily tell you that,” said he “it
was the night the murder took place at the castle.”
“What?” said Fletcher “and who was the man?”
“That I can’t tell you for certain. He was on a seat outside the
Club, and the night was dark. Mr. Sefton thought he had fallen down
and cut himself. I thought it was just a case of drunkenness. I
believe it was Mr. Halley who’s staying in the village.”
There was only one thing to do, although Fletcher knew he would
not meet with a genial reception from Sefton.
He made his way to his bungalow, and asked for him. The tousled
maid who did odd jobs, and did them mighty badly, informed him
that the “Doctor,” as she called him, was in, but Miss Sefton was out,
at which Fletcher was rather relieved.
Sefton came to the door and eyed his visitor with little favour.
“Well, what is it?” he asked.
“Mr. Sefton,” said the Detective formally “I would not come to you
if it was not on a matter of great importance, but I believe you can
give me some information.”
“What is it now?” said Sefton.
 “On the night of the murder, I understand you bound up a man
who was wounded or injured in some way, at the Club. Would you
mind telling me who that was?”
“Really, Fletcher,” said Sefton “you have a lot to learn in your
profession. Your questions are very crude. If I treat a man medically
I no more disclose his name than a priest does one who comes to
confession.”
His manner annoyed Fletcher.
“That’s all nonsense,” he said “you are not a real doctor and in any
case in the interests of justice …”
Sefton cut him short.
“The interests of justice are concerned with criminals, and as the
man in question had nothing to do with the crime, there is no reason
to reveal his name. You will excuse me, but I am rather busy.”
“Yes, and I know why you refuse,” said Fletcher “because it was
that fellow Halley. I believe you are all conspiring together to shield
him but I’ll …”
Fletcher was left to face a closed door, and turned away with
death in his heart. Were the whole village in league to cheat the
ends of justice?
In a furious mood he made his way to the telephone to call up
Sergeant Andrews.
 Chapter XIII.
Detained on Suspicion
“Mr. Halley, will you accompany us to Ashstead, I have a car
outside; you will probably know why we have come.”
It was Sergeant Andrews who spoke these ominous words. By his
side was Fletcher with a smile of triumph on his face. He had run his
enemy to earth at last, and even though he might be treated with
scorn by Ena, what would be her opinion of his rival? There was a
tense silence; Halley stood motionless, not a muscle moved. Fletcher
with deliberate cruelty had staged this scene at the Sefton’s
Bungalow.
“As you are police officers, I suppose I may take it that you
suspect me of some crime,” said Halley calmly.
“We wish to ask you some questions with regard to the murder of
Lord Reckavile, and these are better dealt with by the proper
authorities,” said Andrews, who disliked his task.
“I will come with you,” said Halley. “Am I to be handcuffed or
anything of that sort?” There was irony in his tone which was galling
to Fletcher.
“Not at present,” he said sharply.
Before another word could be said there was a cry, a door was
flung open, and Ena came into the room. Her eyes were blazing with
anger, as she walked straight across to Halley and stood by his side.
“What was this I heard,” she said “Police! Arrest! They must be
mad.”
“We shall see about that,” said Fletcher, “when your precious
friend is in the Dock.”
“It is untrue,” she said. “Tell them that it is utterly false.” In spite
of her complete trust in him there was a terrible lurking suspicion at
the back of her mind. She knew that he was not a murderer, but the
facts that had leaked out from her brother’s statement, that a
struggle had taken place at the castle might mean that he had acted
in self-defence, but surely not with a knife, she could not believe
that he would, even in anger, deal so cowardly a blow.
Halley spoke.
“Miss Sefton,” he said, “to these police officers I would have said
nothing, but since you have asked me, I can tell you that I did not
commit this crime.” Fletcher gave a contemptuous laugh, which
made even Sergeant Andrews look at him in reproof—it was
unprofessional.
Halley continued calmly. “What is more to the point is that I can
easily prove my innocence.”
Her faced cleared. “I knew there must be some terrible mistake,”
she said.
Sergeant Andrews felt the conversation had gone far enough.
“I am very sorry, Miss Sefton, that you were here at all. Mr.
Fletcher told me that you were not at home, and that we merely
came for Mr. Halley. I had just driven to fetch him, so we had better
get off.”
Ena came to the door, her face was white, but she had a look of
pride and confidence.
“Come back to us soon,” she said, “you will receive a warm
welcome,” and she glanced a look of hatred and contempt at
Fletcher.
“Do not worry about me, it will only be a matter of a few hours,”
Halley said as the car drove off.
The examination was short, but Halley for the first time felt the
indignity of his position, for the surroundings in which he found
himself were enough to disgust any man of decent breeding.
The police at the station pushed him along as though he had been
caught in the act of stealing a purse or cutting a throat. He realised
how utterly futile is the old adage that a man under British Law is
considered innocent until he is proved guilty.
The short sharp questions of the Inspector grated on him, and
behind it all was the vision of one young girl torn with anxiety and
waiting to know the issue of this day’s business.
His pride would have made him keep silent, but the image ever
before him forced him to speak.
“If I studied my own interests,” he said “I would let you go on
with this absurd charge, and burn your fingers over the matter. If
you are wise you will let me clear myself immediately. The murder of
which you accuse me took place on the 20th of January and on that
night I have at least three witnesses who can testify that I was with
them during the entire evening, and therefore could not have been
at Reckavile Castle.”
The firmness of his tone and the quiet manner in which he spoke
disconcerted the Inspector, and he turned to Fletcher for advice.
“I have evidence,” said Fletcher “of the most compromising
character, and in spite of what this man says I would strongly advise
that he be detained, and brought before the Magistrates, where the
whole matter can be gone into. I may add,” he said with meaning,
“that I represent Scotland Yard in this matter.”
The Inspector was at a loss as to what to do; on the one hand he
had a heavy respect for the Yard; on the other Halley’s manner had
impressed him.
“Who are your witnesses?” he asked Halley.
“If you care to send for a certain Mr. Southgate of the Black Horse
at Portham Village and his wife, they will both confirm what I have
said. And there is a fisherman who also saw me there on that night.
I merely say this in your own interests,” he added “for it does not
bring the police force into good repute when they make wrongful
arrests.”
The Inspector scratched his head in perplexity.
“I think, Mr. Fletcher,” he said “we had better either send for these
witnesses, or wire for instructions from Scotland Yard.”
For the first time, serious doubts crossed Fletcher’s mind and he
addressed Halley in a more conciliatory tone.
“But if you can prove an alibi, can you account for the fact that
Brown is willing to swear an oath that it was you who were talking
with Lord Reckavile immediately before his murder.”
 Halley shrugged his shoulders. “It is not for me to prove my
innocence,” he said, “but for you to prove my guilt. I am always to
be found, I do not intend to run away, but you must have better
evidence than you have at present before you can prove your case.”
“I think on the whole,” said the Inspector, “we had better send for
these people.”
Fletcher remained silent, and the Inspector took this for
acquiescence. He rang his bell, and an officer appeared.
“Tell Sergeant Andrews,” he said “to motor in at once and bring
out the landlord of the Black Horse, and his wife, and get the name
of the fisherman whom Mr. Halley says was with him on the night of
the murder.”
The officer saluted and went out.
There was an awkward pause. The Inspector had not any special
liking for the interference of Scotland Yard, and was rather pleased
with the prospect of proving their envoy in the wrong.
“Can you help us to throw any light whatever on this mysterious
matter?” he said to Halley.
“I could say a good deal,” said Halley, “but while I am an accused
person I refuse to make any statement whatever.”
“Then I may take it that you have information which might lead to
the detection of the criminal and are deliberately withholding it?”
“Which criminal?” said Halley.
The Inspector gave an impatient gesture. “You know what I mean,
the murderer of Lord Reckavile.”
“Oh, I understand, I thought you meant the other.”
“Are you talking in riddles to amuse yourself?”
Halley shrugged his shoulders. “Perhaps you will learn the answer
some day.”
After a wait of half an hour, Sergeant Andrews arrived in the car
accompanied by Southgate, his wife and a fisherman. There was a
look of vexation on the Sergeant’s face.
“I am afraid there is something wrong, sir,” he said to the
Inspector. “It appears that on the night when the murder took place,
Mr. Halley was at the Black Horse with Southgate and his wife, and
was also seen by a considerable number of other people. I would
not trust the landlord much myself, but the evidence of an alibi is
overwhelming.”
Fletcher intervened. “There are certain movements of Southgate’s
which require explanation. He had a habit of going out at night on
the excuse of fishing, when it is impossible for anyone to put a boat
to sea.”
The landlord grinned broadly. “I am afraid this gentleman suffers
from nerves. ’E was very scared when ’e stopped at my poor place.”
When all the evidence had been heard, there was only one thing
to do; Halley was released with profuse apologies from the
Inspector, and was sent off in the same car in which he had been
brought in as a suspected person. The police officers stared blankly
at each other.
The Inspector was a man of few words.
“You have made a pretty mess of things,” he said to Fletcher, “I
should think Scotland Yard will be rather pleased.”
Fletcher flushed angrily.
“If all the information that your police officers give me is as
accurate as what I have just had, I do not think much of their
efficiency.”
“Well, it is no good quarrelling,” said the other “you have tried to
pin the crime on to young Sefton, on to Mr. Halley and now I can
see you suspect Southgate, though he also has a complete alibi.
Who is going to be your next victim?”
Halley got out of the car before he reached Portham, and walked
slowly to the Sefton bungalow. Sefton was at The Red Cote, where
he worked all day, and Halley knew that Ena would be alone and
anxious. He softly approached the house and walked in without
knocking, as he had been accustomed to do for some time. There
were no signs of the girl in the lounge, and he tapped softly on her
door.
“Who is that?” a muffled voice replied.
“It is I, Halley,” he said.
There was a sharp cry from within, and Ena came out; her face
showed signs that she had been crying, and she had a strained look,
but she came forward with a glad welcome and took both his hands
in a frank open manner.
“Oh, I am so glad you are back,” she said “I know it was all a
mistake, but how terrible it has been for you.”
He did not let go of her hands, but said quietly:
“And for you too?”
She looked down now and murmured. “The most terrible time of
my life.”
“Ena,” he said, and she did not resent the use of her Christian
name, “even you were not quite sure of my innocence; I could see
it.”
“Oh! don’t think that,” she replied “it is not true, I knew you had
never committed a murder, but I thought …” and she stopped.
“What was it you thought?” he said almost sternly.
“Oh, you know what my brother says about the struggle in the
room, and that Lord Reckavile must have struck his assailant, and
the words he said suggested a quarrel. I thought perhaps he might
have assaulted you.”
“And that I had stuck a knife into him,” he said sadly.
“Oh. No! No! I knew you could not have done that.”
A sudden look of amazement came into Halley’s face.
“My God,” he said “I think I can see light, but if so how devilish!
How fiendishly cunning!”
She was startled and tried to release her hands, but he led her
gently to a seat and sat beside her.
“Let us forget this horrible business if we can. I want to tell you
something. There is a mystery in my life, which I cannot explain
even to you at present. Some day perhaps I may be able to do so.
This alone has prevented me from saying something to you which
has been burning into my head since first I saw you.”
Ena gave him a quick glance, and then looked down.
“I think you can guess what it is, and if you have nothing to say to
me, I will walk out of this room and out of your life sooner than hurt
your feelings. When first I met you on that windy afternoon, when
you were battling against the storm so bravely, and I learned that
this was the symbol of your life—battling against the Storm, my
heart went out to you in sympathy such as I have never felt to
anyone else in the world, and during those following days, when
your sweet companionship meant so much to me—more than you
perhaps will ever know—I knew that for the first time in my life I
loved, and would go on loving for all time, whether you cared for me
or not.”
His voice was very tender.
“Love I take it,” he said “is sacrifice and service. My whole mind
and body has been in your service and yours only since first we met,
and if my life could have been given to lift the burden, which I saw
was hanging over you, I would willingly have made the sacrifice.”
“I know,” she said softly, and tears were falling unrestrainedly and
she made no effort to wipe them from her face.
He waited for a moment and then continued.
“It is possible that I have hurt you by what I have said. I will not
insult you with the usual question as to whether there is someone
else to whom you have already given your heart, nor will I ask you
for an answer now.”
Then she looked up at last.
“Surely you men must be completely blind. I think you are the
only one of our acquaintances who has not seen the truth that I
have loved you all the time.”
With a great sigh he gathered her into his arms. She nestled her
head on his shoulder and with a happy laugh said,
“If you had not spoken to me, I think I should have to have
spoken to you. My brother has been constantly warning me that I
am throwing myself away on you. Fletcher taunted me with the
same thing, and I am sure all those police constables must have
seen the state of things to-day, when I gave myself away
completely.”
His manner was gay, in contrast to his usual gravity.
“Well you have given yourself away now completely, I hope.
Come, let’s walk to The Red Cote, and tell your brother.”
With a happy smile, she took his hand and they went out together.
 Chapter XIV.
A Vision of the Night
The news that Halley and Ena were engaged was the last straw to
Fletcher. One thing was now firm in his mind, to find out the truth of
the whole matter, and not to fail in this at any rate, for failure was
intolerable after all the indignities he had suffered.
In spite of his common-sense mind, he began to have a feeling
that something not altogether natural had played a hand in the
affair.
There was the mysterious “Other Man” who obtruded himself at
every turn, elusive and vague, but always felt.
The man who had talked with Reckavile, and whose voice Brown
had sworn was Halley’s. The man who had been in the library with
one who, he was morally certain, was Southgate. The one who had
appeared to him in the library under such strange circumstances,
and the man with a bleeding wound who had been bandaged up by
Sefton.
At every turn he was met by this mysterious individual. Was there
anything in this Curse theory after all? Surely we had outgrown
these ideas!
There was only one thing to do; for some unexplained reason
attempts had been made to get into the library after the murder.
What was the object? And had that object been accomplished?
The queer old man, the memory of whom sent a cold shudder
down his back, had done nothing, and the supposed burglars had
been disturbed, but had they tried to come again?
Here was evidently the key to the mystery.
Fletcher made up his mind that he would spend his nights in the
room, and stake all on this chance.
 For nights he watched, a tortured man. He sat in the dark, and
tried to reconstruct the scene. Here was Lord Reckavile talking to—
someone. Then there was a sudden attack—but by whom? Reckavile
or the other. By the evidence Reckavile was the aggressor, but
nothing could alter the fact that a knife was sticking in his ribs.
His mind turned in a curious way to the round leather object found
on the dead man. What was it, and had it any bearing on the crime?
There were signs of the coming dawn, and a very dim light was
filtering into the room, for the blinds were not drawn, when very
faintly a slight jarring noise came to his ears; someone was
approaching through the Hall. He silently slid behind the sofa, and
lay there clutching the powerful electric torch which he had brought
with him. The sounds grew louder and there was a creak of a board,
then he heard a whisper which told him that more than one person
was approaching. His senses were strained to catch the slightest
indication as to who the visitors might be. He was convinced now
that they were standing close to him. He could hear rapid breathing,
but no other sound broke the silence. Now was the time for action.
This time he had come armed, and holding his revolver in the right
hand, he rose to his feet and switched on the torch.
Utter amazement kept him spellbound. Close to the old desk, and
bending over it were two men, who rose and faced him at the
sudden flood of light. The one was his mysterious visitor, the old
man who had appeared before, but strange as this was, the sight of
the other is what filled him with astonishment, for this was no other
than Sinclair, his own Chief at Scotland Yard.
“Who is that?” asked Sinclair shading his eyes from the glare of
the torch.
Fletcher advanced. “I am Fletcher, sir. But what on earth are you
doing here?”
With all his sense of respect, there was a note of suspicion in his
voice, at which Sinclair laughed heartily.
“Oh! we are not committing a burglary,” he said “but as things
were hanging fire, I thought I had better come down and have a
look at matters for myself.”
 “And may I ask,” said Fletcher rather annoyed that his Chief had
come without informing him, “who is that with you?”
The old detective seemed to hesitate for a moment.
“Giles I be,” said the old man, with a senile chuckle, and Fletcher
recalled that he had used exactly the same words on the former
occasion. Was the place really haunted, and were these two
figments of his own brain?
“Why didn’t you tell me that you were coming down, sir?” he said
to Sinclair.
“To tell you the truth, I did not know myself until this afternoon,
but something has happened which led me to intervene in the case.
I was pretty certain of the true solution from the very first.”
“I’m afraid I don’t understand even now. You say you are not
committing a burglary, sir,” said Fletcher, and stopped.
The old man drew himself up with some dignity, and said in a very
different voice.
“As the castle belongs to me I do not think we need discuss that;
if anyone is unlawfully intruding, it is you.”
He turned on an electric lamp, though the dawn shed a ghostly
light into the room.
Sinclair broke the silence.
“I think we had better have a round-table conference. We wanted
to make the final discovery first, but as things have gone so far, we
had better have all the cards on the table.”
“But I don’t understand,” said Fletcher “if you know everything,
who was the murderer, and who is this—gentleman?”
“As to the first question,” said Sinclair impatiently, “there is no
doubt about that, and as to the other, you shall know. Now go off,
and ask these people to come here at ten o’clock punctually.
Remember, you have not done too well in this case, so I rely on you
to carry out these instructions. You will ’phone for Sergeant Andrews
and Brown. Use my name. Then you must get Southgate and Giles,
and Mr. Sefton and his sister.” He looked at the old man, who
nodded.
“Giles must come and tidy the place a bit and arrange a
conference room. Everything hangs on that. Don’t forget. At ten
o’clock.”
Fletcher went out like a man in a dream: What on earth was the
meaning of it all? Even now he was as much in the dark as ever.
Why this conference and who among those invited was the
murderer? Also why had the very man of all others whom he
suspected still, Halley, been omitted. Or, stay, was it because Sinclair
had already got Halley? The thought thrilled him.
At any rate he had a job of work to do.
Thanks to old Giles’ efforts the library was transformed when the
strange party began to arrive, and it looked more like a Board Room,
with a large table and chairs set round it.
The police representatives were the first to arrive, as nonplussed
as Fletcher, and feeling rather aggrieved that such a man as Sinclair
should have acted without telling them anything.
This drew them together, and Fletcher, Andrews and Brown seated
themselves at one end of the table, and waited. Jack Sefton and his
sister came next, the latter nervous and rather pale. She gave a
formal bow to the other men and with her brother took the opposite
end of the long table.
The genial Southgate, who had obviously prepared himself for the
meeting with refreshment from his cellar, entered and greeted the
others with a cheery good morning. He looked at Fletcher, and
laughed.
“Young man,” he said “you’ll ’ave a ’igh old time in a moment,” and
he slapped his leg.
Giles had been hovering about, making things comfortable, and
was quite the old butler again, but all waited for the principal figure.
It seemed as though the whole thing had been staged for effect.
The door opened and Sinclair entered accompanied by the old
man whom Fletcher had seen, and they took their seats in
astonished silence.
There was one vacant chair, which Fletcher supposed was
reserved for Halley.
“He’s late,” said Sinclair looking at his watch.
“I think I hear someone, sir,” said Giles, going to the door.
 “Mr. Cook,” Giles announced, and the house agent came in and
smiled nervously at the company.
“Take a seat, Mr. Cook,” said Sinclair. “Now I think we are all here.
We are going to piece together this mystery.”
The others looked at the house agent in astonishment. What was
he doing in this gathering? Their speculations were interrupted by
Sinclair who spoke slowly and with a solemn tone in his voice.
“This has been a problem of some difficulty and I am not going to
disguise the fact that at one time it nearly baffled the authorities.
Now it is quite clear.”
“It may be to you, sir,” said Fletcher “but to me it is as dark as
ever.”
A flicker of a smile came to Sinclair’s grim face.
“Perhaps you would like to ask a question or two?” he asked.
“Who was talking with Lord Reckavile in this room when the
murder took place?” said Fletcher.
“No one, at least no living thing.”
“How did the other man escape from the room?”
“He did not escape, there was no other man.”
“Had the Reckavile Curse anything to do with the crime?”
“Yes, everything.”
“Did it kill him?”
“Yes,” said Sinclair solemnly.
“This is absurd,” said Fletcher impatiently, “I don’t believe in
bogies.”
“Go on,” said Sinclair imperturbably.
“I suppose you will say Lord Reckavile committed suicide?”
“In one sense, yes.”
“Then he was not murdered?”
“Oh yes he was, and …” Sinclair leaned forward in his chair and
said slowly: “The murderer is in the room at the present moment.”
There was utter silence, except for the breathing of those present.
The room seemed to grow dark, and the air became oppressive.
Those round the table looked at each other with horror and
suspicion in their eyes, and a vague shadowy something seemed to
be gathering in the room.
 Ena shuddered. Where was her lover? Why was he not there of all
people, when he had actually been accused of the crime?
Was there something in the Curse after all, and some unseen
visitant hovering about them?
She could bear it no longer, and in a strained voice asked:
“Where is Mr. Halley, Mr. Sinclair, and why is he not here?”
“Mr. Halley does not exist,” then hastily as he saw the girl’s face.
“Don’t be alarmed, Miss Sefton, he never did exist.”
Doubts as to Sinclair’s sanity began to fill the minds of the others.
“But why all this mystery, sir? If you know all about it, why not tell
us?” asked Fletcher.
“I did not say I knew all about it. Well as no one seems disposed
to speak, we had better get on with the story, eh Lord Reckavile?”
He turned to the old man beside him.
An exclamation of astonishment, mixed with superstitious terror
came to those present. Giles reeled and turned ashen, while the
breath soughed between his teeth, and his eyes bulged from his
head. He was standing behind the old man. Sinclair saw him.
“Oh, I am sorry Giles, you should not have been standing, come
and sit down, no I insist, it was too bad keeping you standing all this
time,” and he conducted the old servant to a chair. “Are you feeling
better now?”
“Yes, thank you, sir,” he answered faintly.
The strange old man addressed as Lord Reckavile deliberately took
hold of his hair and beard and removed them disclosing the face of
Halley, looking grotesque enough with patches of grease paint where
the hair had not covered his face, and white eyebrows which he
pulled off with difficulty.
“Well I’m damned,” said Fletcher and hastily apologised to Ena.
“I give it up,” said Sefton.
Ena’s eyes were fixed on Halley. An awful suspicion was gathering
in her mind that he too was a detective in disguise and had been
acting a part, perhaps with her, but she dismissed it as unworthy.
Sinclair was speaking. “I had hoped for a final link in the chain,
but since we have not got it I am going to ask Lord Reckavile to tell
us his story. It is a long one, but you will find it interesting I think.”
“Lord Reckavile …?” began Fletcher.
“Wait,” said Sinclair “you shall know the truth now.”
 Book II.
The Reckaviles
 Chapter I.
The Convent School
A great Cathedral Church rises high over the river, a beautiful
landmark for miles round. It is not an old Gothic church, for these
passed into the hands of the Anglicans at the Reformation, but is a
model of modern Gothic, stately and tall, with stained glass windows
between the slender buttresses.
Below nestles the little town, terraced on the slope above the
marshland where a sluggish river winds to the sea.
Here in this quiet world a convent school was bedded in the
woods, where the patient nuns devoted their lives to the education
of all—whether of their own religion or not—who came under their
charge.
On a summer day nearly half a century ago, there came to the
convent school an Italian lady, with a young girl, fresh as a rose bud,
half formed, but giving promise of rare beauty.
The mother was past her first youth, and like so many southerners
was showing signs of fading charms, but still dangerously beautiful.
The child, who spoke no English, gazed shyly round, as they were
admitted through the gates to the lovely garden within, and into a
cool large room, there to await the Mother Superior.
The woman was dressed in excellent taste, the only jarring note
being the quantity of jewelry she wore, which betrayed a certain
vulgarity in her otherwise faultless appearance.
The Mother Superior entered with a calm and sweet face as of one
whose life was one long sacrifice.
“I wish to leave my little daughter Carlotta with you,” said the
Italian. “She is fourteen years old, and has been educated in Verona,