By this time he had entered the park. Ahead of him he could hear the running feet of the man he was pursuing. The big recreation ground was almost deserted.

"I don't believe he dare run very fast," reasoned Larry, as he slackened his pace. "If he does a policeman will be sure to stop him and ask questions, and I guess Retto will not relish that. I have a better chance than I thought at first. After all, I don't see why he is so afraid of me. All I want to do is to ask him where he gets the letters from Mr. Potter. He must know where the millionaire is hiding, and it looks as if Mr.

Potter had been in Retto's room at the Jackson tenement, or else how would the envelope get there? That's it! I'll bet the missing millionaire has been hiding with this East Indian chap! I never thought of that until now!"

Having walked for fully a quarter of a mile Retto came to a sudden stop, and so did Larry, hiding in the shadow of a tree. Retto listened intently, and, of course, heard no pursuing footsteps. This apparently satisfied him, for he proceeded more slowly.

"He thinks I've given up the chase," thought Larry. "I'll let him. Maybe he'll go home all the quicker, and, after I learn where he is stopping, I can go back and see what Grace wanted."

Larry's surmise proved correct, and his wish soon came to pass. The man, evidently believing that he was safe, emerged from the park to the street, for the whole pursuit had gone on not far from the thoroughfare, and just within the boundary of the city's breathing spot. Larry, keeping in the shadows, watched him.

He saw Retto give one more cautious look around and then, crossing the highway, enter a hotel nearby. It was a fashionable one, and Larry wondered how the man, who had, hitherto, only lived in tenements, could afford to engage rooms in such a place as this.

"Maybe he's only doing it to throw me off the track," the reporter reasoned. "I'll just wait a while and see if he comes out."

He waited nearly an hour, hiding in the shadows of the park and keeping close watch on the entrance to the hotel. He did not see Retto emerge, and then he decided on a new plan.

"I'll inquire if he is stopping there," he said to himself. "If he is I'll wait until to-morrow before acting. I'll let him think everything's all right. It's the best way."