"He stated that at about six o'clock on the Friday afternoon, when the racecourse was still full of people, all hurrying after the day's excitements, he himself happened to be standing close to the hedge which marks the boundary of Lord Arthur Skelmerton's grounds. There is a pavilion there at the end of the garden, he explained, on slightly elevated ground, and he could hear and see a group of ladies and gentlemen having tea. Some steps lead down a little to the left of the garden on to the course, and presently he noticed at the bottom of these steps Lord Arthur Skelmerton and Charles Lavender standing talking together. He knew both gentlemen by sight, but he could not see them very well as they were both partly hidden by the hedge. He was quite sure that the gentlemen had not seen him, and he could not help overhearing some of their conversation. "'That's my last word, Lavender,' Lord Arthur was saying very quietly. 'I haven't got the money and I can't pay you now. You'll have to wait.' "'Wait? I can't wait,' said old Lavender in reply. 'I've got my engagements to meet, same as you. I'm not going to risk being posted up as a defaulter while you hold £500 of my money. You'd better give it me now or--' "But Lord Arthur interrupted him very quietly, and said: "'Yes, my good man.... or?' "'Or I'll let Sir John have a good look at that little bill I had of yours a couple of years ago. If you'll remember, my lord, it has got at the bottom of it Sir John's signature in _your_ handwriting. Perhaps Sir John, or perhaps my lady, would pay me something for that little bill. If not, the police can have a squint at it. I've held my tongue long enough, and--' "'Look here, Lavender,' said Lord Arthur, 'do you know what this little game of yours is called in law?' "'Yes, and I don't care,' says Lavender. 'If I don't have that £500 I am a ruined man. If you ruin me I'll do for you, and we shall be quits. That's my last word.' "He was talking very loudly, and I thought some of Lord Arthur's friends up in the pavilion must have heard. He thought so, too, I think, for he said quickly: "'If you don't hold your confounded tongue, I'll give you in charge for blackmail this instant.' "'You wouldn't dare,' says Lavender, and he began to laugh. But just then a lady from the top of the steps said: 'Your tea is getting cold,' and Lord Arthur turned to go; but just before he went Lavender says to him: 'I'll come back to-night. You'll have the money then.' "George Higgins, it appears, after he had heard this interesting conversation, pondered as to whether he could not turn what he knew into some sort of profit. Being a gentleman who lives entirely by his wits, this type of knowledge forms his chief source of income. As a preliminary to future moves, he decided not to lose sight of Lavender for the rest of the day.