"We have often watched you—though you were not aware of our presence," said the chairman. "We had just called a committee meeting to decide what is to be done about this matter of the tunnel."

"Now you know it is all nonsense about the dragon," said Karl persuasively, as if he were talking to children. "You have heard of trains, haven't you? You are not so behind the times as all that!"

"Some of us have seen the dragon and even ridden in him," said Mr Chairman. "There is a famous story about that; but the majority still look upon the railway with suspicion and even distrust. We only ask to be let alone, and not be interfered with by meddling mortals," he said in a gruff voice. "What do we need with you? Our civilization and our history are more ancient even than that of India or Egypt, and from us the human race is descended."

"I tell you what," said Karl, "I could put you up to a thing or two for all that. We live in Modern Europe, you know, and not in ancient Egypt. Now, for instance, why is this beautiful hall, a perfect work of art in its way, so badly illuminated!"

"Badly illuminated! Why, what do you mean?" cried the little men indignantly. "Do you not see our glow-worms hanging in festoons on the walls?"

"O, I say, glow-worms! in the twentieth century, that's rather strong, you know! what you want, is electric light."

"What's that?" said the dwarfs curiously.

"You have only to press a little button on the wall, like this," he pressed his thumb on the wall—"and the whole place is lit up almost as if it were day."

"We don't believe it—we don't believe it," said the little men.

"But it's true, I assure you, Christmas Tree," said Karl.