Penny related her experience in Hanley Cron's studio, but at mention of the jewelry theft, Mr. Nichols lost all interest in the Black Imp. He insisted upon hearing every detail of the theft.
"It doesn't surprise me a bit," he declared when Penny finished the story. "I warned Mrs. Dillon that necklace would be stolen if she didn't get it locked up."
"She lost it on the way to the bank, Dad. Perhaps she thinks now that if she hadn't attempted to follow your advice, the pearls would still be safe."
"Nonsense!" Mr. Nichols exclaimed impatiently. "That necklace was stolen by someone who was lying in wait for her. Possibly by one of the same thieves who attempted to hold up the Dillon ball the other evening."
"Mrs. Dillon did make a grave mistake to carry the pearls unguarded," Penny admitted. "But it seems to me the thief must have been someone who was in the house after the holdup."
"Why do you think that?"
"Because otherwise how would the thief have known that Mrs. Dillon intended to take her necklace to the bank today? You remember she spoke of the matter openly before her guests."
"I remember," Mr. Nichols smiled.
"And Mrs. Dillon made an appointment to meet Hanley Cron at his studio before she went to the bank. The thief apparently was waiting for her in front of the building. It was no casual snatch. I'm sure of that."
"Your reasoning is very good," Mr. Nichols praised. "Tell me, who overheard this conversation between Mrs. Dillon and Hanley Cron?"