ed the case,
for he strongly suspected that he knew who was the actual purloiner of
the stolen twenty-dollar bill. It is hardly necessary to say that the
young man was Percy's friend, Reginald Ward.

When the landlord gave his testimony, he was no longer in doubt, for he
had himself noticed the letters I. W. on the back of the bank-bill.

As he left the court-room, he saw Percy lingering near the door.

"Come with me, Percy," he said, linking his arm with that of the boy. "I
have something to say to you."

"I have an engagement," pleaded Percy, trying to release himself. "I
will call round this afternoon."

"I can't wait till afternoon," said Reginald decidedly. "I must speak to
you now on a matter of importance."

"How did the trial come out?"

"The boy was acquitted."

"I thought he would be."

"Why?" asked Reginald Ward, eyeing Percy curiously.

"Because I don't think he would steal."

"Is he a friend of yours?"

"No; he is only a working boy."

"Still you think he is honest?"

"Oh, yes."

"How then do you account for the bill's being stolen?"

Percy shrugged his shoulders.

"I don't feel sure that any bill was stolen," he said. "I don't think
much of old Jones. I dare say he made up the story."

"That is hardly likely. What object could he have?"

"He wanted to get hold of Bert Barton's bill. Where did Bert get it
from? Did he say?"

"He said it was left in an envelope by some old uncle of his."

"Uncle Jacob?"

"Yes; I think that was the name."

"I didn't think the old man had so much money to spare."

"You seem to know him then?"

"I have heard of him."

By this time they had reached the hotel, and Reginald asked Percy to
come up to his room.

"What was it you wanted to speak to me about?" asked Percy, as he took a
seat at the window.

"I wanted to tell you that the stolen bill came from Mr. Holbrook. Mr.
Jones testified to this effect, and Mr. Holbrook also."

"Well, what of that?"

"Mr. Holbrook described the bill and stated that the letters I. W. were
written in red ink on the reverse side."

Percy began to see the point, and waited anxiously for Reginald to
continue.

Ward drew from his pocket the twenty-dollar bill, and held it up to open
view.

"This is the bill you paid me last evening," he said. "You will observe
the letters I. W. as described by the landlord. Now, where did you get
this bill?" he asked searchingly.

Drops of perspiration stood on Percy's for