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 imposed upon after all the warnings that had been circulated regarding counterfeit money. But the rug merchant had been so plausible, and as she was an unsuspecting woman by nature, she had never for a moment considered the possibility of trickery.

"We'll go down and have a chat with the police," said Frank, getting up. "Although I'm afraid it won't do any good."

"Chief Collig will tell us that he is busy following up clues," remarked Joe, with a laugh. And that's as far as he'll ever get."

This proved to be the case. When the boys reached the police station they found Chief Collig and Detective Smuff in the midst of a game of pinochle and averse to being disturbed.

When they inquired if there had been any further information regarding the rug merchant, Chief Collig shook his head.

"We're following up some clues," he said gravely; "but there hasn't been any more trace of him."

"Not a trace," corroborated Detective Smuff, with a portentous frown.

"Do you think he'll be arrested?" asked Frank.

Chief Collig looked up.

"Of course he'll be arrested," he declared. "Didn't I say we're followin' up clues? We'll