certain that Mrs. Masterbrook was not within hearing,
Penny told him of her important discovery in the village. Mr. Nichols
examined the cloth very closely and then compared it with the wick of
the toy lantern.

"The material looks exactly the same to me, Dad!" Penny declared
excitedly.

"It is identical," her father agreed. "Where did you say you bought
the goods?"

"At Hunters Store. Unfortunately, every woman in Kendon seems to have
bought this same material."

Mr. Nichols reached for his hat. "I'm going down there now and talk
with the storekeeper," he declared.

"Then you think the clue is important, Dad."

"Yes, I do, Penny. It may not lead to anything, but one can never be
sure."

"Didn't I tell you to call on me if you needed help with the case?"
laughed Penny.

"You certainly did," her father agreed good-naturedly. "As a detective
I'm afraid you're showing me up in a bad light."

Before leaving the cottage Mr. Nichols was careful to lock the toy
lantern in his room. Considering its value in the Kirmenbach case he
did not wish to run any risk of having it stolen.

Mr. Nichols was absent from the cottage a little over an hour. When
Penny saw him coming up the road she ran to meet him.

"Did you learn anything, Dad?" she asked eagerly.

The detective shook his head.

"I'm satisfied that the material is the same," he replied, "but the
storekeeper couldn't remember anyone who had bought the goods from him.
He seems to be a stupid fellow."

Penny walked along with her father for some distance without making any
response. Then she said half apologetically:

"Dad, I have an idea, but I suppose it's a very silly one."

"What is it, Penny?" the detective asked soberly.

"I have a theory that the thief who took the Kirmenbach jewels may have
been some person living in this locality."

"That is possible," Mr. Nichols agreed.

"In that case the toy lantern probably belonged to some child who may
reside in or near Kendon."

"True."

"This is my idea," Penny explained. "Why not display the lantern in
some prominent place where children will be likely to see it--for
instance the candy department of Hunter's store. Take Mr. Hunter into
your confidence and have him on the lookout for the original owner of
the toy lantern. A child seeing it on the store shelf would be almost
certain to identify the property as his."

Mr. Nichols did not laugh. Instead he remained thoughtfully silent for