"Indeed!" said Lawrence, in assumed surprise.

"Yes, mine was left with the clerk."

"And mine also."

"And he doubtless made a mistake in delivering them. Upon my word I am not surprised, as they certainly are very much alike."

"So they are!" said Lawrence, taking the valise from Palmer's hand. "And here is your name too."

"It is quite a joke, ha, ha!" laughed Palmer, his spirits rising as he saw that there would be no difficulty in effecting the exchange. "I suppose I may take mine?"

"You are quite sure it is yours? Pardon my asking, but you are a stranger to me."

"Oh, it's all right! You see this spot on my valise. Outside of that, there is really no difference."

"You are willing to swear that valise I brought over from the Clifton is yours?"

"Why, of course!" returned Palmer in surprise. "How can there be a doubt after what I have said?"

"You will pardon my caution. It certainly does seem like it, but I don't want to run any risk of giving it to the wrong party."

"Oh, that's all right!" said Palmer impatiently, setting down Lawrence in his own mind as a crank.

"Probably you have the key that opens it."

"Certainly."

"Then do you mind opening it, and satisfying yourself and me that it really belongs to you?"

"Surely not," said Palmer, really glad of an opportunity of satisfying himself that the bonds were safe.

He drew from his pocket a bunch of keys, and carefully selecting one inserted it in the lock of the valise. It opened at once, and Palmer eagerly scanned the contents. The under-clothing had been carefully replaced, and he did not discover that it had been disturbed, but when he lifted it to look for the envelopes containing the bonds, his face underwent a change.

"What is the matter?" inquired Lawrence, calmly.

"That valise has been opened," said Palmer, angrily.

"What makes you think so?"

"The most valuable contents have been removed. I hold you accountable for this, Mr. Lawrence," continued Palmer, fiercely.

"Please be a little more explicit. What is it that you miss?"

"Two envelopes, containing valuable bonds."

"This is a serious charge. Are you sure they were in the valise?"

"Of course I am. I put them there myself, and when I opened the valise this morning they were there."

"Wasn't it rash in you to leave articles of such value in your valise? Can you name any of the bonds?"

"Yes; there were two Erie mortgage bonds of a thousand dollars each, two government bonds of five hundred dollars each, some bank bills, and miscellaneous securities."

"You don't mean it? And you placed them there?"

"I did, and I am willing to swear to the statement. I demand of you, sir, where they are."

Mr. Lawrence rose from his seat, and on pretense of examining the contents of the open valise, managed to get in between Palmer and the door.

"A man in my employ had charge of the valise for a short time," he said. "He may have opened it."

"Where is he? He must be arrested before he can get away," said Palmer in excitement.

"Ferguson!" called Mr. Lawrence.

The detective, who had of course heard all that had passed, stepped out from the inner room. He assumed the tone of a servant.

"Did you call, sir?" he asked.

"Yes."

"I am at your service."

"This gentleman here claims the valise as his property. He says that some bonds have been abstracted from it. Am I right?"

"Yes," assented Palmer, with a fierce glance at the detective.

"He charges me with having opened the valise, and taken them."

"What does he say to that?" demanded Palmer in excitement.

"It is true," said Ferguson, calmly.

"You hear?" said Palmer. "Give me back those bonds, you scoundrel, and I may let you go free. Otherwise I will have you arrested, and you can guess what will follow. Don't let the fellow escape!" he added quickly, as the detective edged towards the door.

Lawrence upon this went to the door and locked it.

"What have you to say for yourself?" he demanded, turning to Ferguson.

"Only that I am a detective, and that I am specially deputed to search for and recover the bonds stolen from Philo Carver of Elmira, yesterday afternoon. I have reason to think I have found them."

"Duped!" exclaimed Palmer, sinking into a chair in dismay.

"Yes, Mr. Palmer, it looks like it. There is one article missing, a gold watch and chain."

"I don't know anything about them."

"We may find some one who does. Fred!"

At the summons the train boy stepped out from the inner room, followed by Frank Hamblin.

At sight of his late room-mate Palmer first showed surprise, and then anger.

"Did you put up this job on me?" he asked fiercely.

"It seems that you put up a job on me," said Fred, quietly. "The watch was found in my bundle."

"Yes, that was to be your share," answered Palmer maliciously. "Gentlemen, I suppose I shall have to surrender at discretion, but I am not the only guilty party. That boy is my confederate!"

"It is an outrageous falsehood!" burst out Fred indignantly.

"It is of no use your denying it. I am convinced that you have betrayed me, and I will have no mercy on you. Gentlemen, arrest me if you think best, but arrest him too. He is just as guilty as I am."

"You assert that he is your confederate?" said Lawrence.

"Yes."

"How long have you known him?"

"Ever since he was born. His mother was a cousin of mine," Palmer asserted unblushingly.

"Do you believe this, Mr. Ferguson?" asked Fred, quite overwhelmed. "I never saw this man till last evening."

"If he is your cousin, what is his name?" asked the detective, not answering Fred's appeal.

"Fred Fenton," said Palmer coolly.

"He has got my name right, but he saw it in the hotel register," said Fred.

"I presume you are right," said Ferguson.

"You seem interested in my young cousin," said Palmer with a malicious sneer.

"Do you mean to say that he was with you in Elmira?" asked Lawrence.

"Yes; he stood outside to warn me if any one came along, who was likely to interfere with me."

"And you both took the train for Niagara after the burglary was effected?"

"Exactly."

Lawrence was staggered by the positive assertions of the culprit. It must be considered that he was not acquainted with Fred, who, so far as he knew, might be an artful young adventurer.

"Why didn't you take the boy over to the Canada side with you?"

"It was understood that he was to come over later in the day. We passed for strangers at the Lynch House, and I thought it might excite suspicion if we both went away together at so early an hour in the morning."

"Mr. Palmer," said Fred warmly, "you know perfectly well that all these statements are false, and that I never met you or had anything to do with you till last evening."

"It won't do, Fred!" said the burglar. "You and I are in the same boat. You are a boy, and will probably get a lighter sentence than I. But you shouldn't go back on your old pal like this."

"Do you believe that man, Mr. Ferguson?" asked Fred with a troubled look.

"No, but I shall be obliged to hold you till I produce him in court to-morrow."