Dan Merley has accused Mr. DeVere of failing to return five-hundred dollars. Mr. DeVere has already repaid the debt, but Merley was drunk at the time and failed to give Mr. DeVere a receipt. Mr. DeVere can hardly afford to repay the money a second time, but may have no choice. Curiously, Alice and Ruth witness Dan Merley as he is nearly run over by a train. The man doesn't appear hurt, yet he complains of injuries and insists upon being taken to the hospital. The girls feel certain that Merley is up to some scheme.