After his last attempt to capture Oz, the gnome had been given a small cottage to live in, just outside the Emerald City. But Ruggedo could not bear life above ground. The sunlight hurt his eyes, and the contented, happy faces of the people hurt his feelings, for he was exactly what Wag had called him—an old scrabble-scratch. So, while he pretended to live in the little cottage, according to Ozma’s orders, he really spent most of his time in this deep, dark cave. He entered it by a secret passage, opening from his cellar.

Digging the long passage had been the hardest work Ruggedo had ever done in his bad little life. While toiling one day, he had bumped into the underground burrow of Wag, a wandering rabbit of Oz, and after a deal of bargaining, the rabbit had agreed to help him. Wag was to receive a ruby a month for his services, for the gnome still had a large bag of precious stones, which he had brought from the old Kingdom. After the bargain with Wag was made, the passage progressed rapidly, for the rabbit was an expert digger.

It was Ruggedo’s idea to tunnel himself out a secret chamber, directly under Ozma’s palace, and there establish a kingdom of his own. But when they had almost reached the spot, the earth began to crumble away, and a few strokes of Ruggedo’s spade revealed a great dark cavern, already tunneled by someone else. It was huge and the exact shape of the royal palace. This Ruggedo discovered by careful measurement, and also that it was directly beneath the gorgeous green edifice, so that the footsteps of the servants could be heard faintly, pattering to and fro.

This dark, underground retreat suited the former Gnome King exactly and, without stopping to wonder to whom it had belonged, Ruggedo gleefully took possession. For almost two years he had lived here without anyone suspecting it, but so far his kingdom had not progressed very well. Wag had tried to coax some of his rabbit relations to serve the old gnome as subjects, but Ruggedo, besides his terrible temper, had a mean habit of pulling their ears, so that the whole crew had deserted the first week. He had pulled Wag’s ears once, but the rabbit tore out a pawful of his whiskers, and bit him so severely in the leg that Ruggedo had never dared to try it again.

Wag had stayed partly because Ruggedo amused him and partly because of the bribes, for every day, in fear of losing his only retainer, Ruggedo brought Wag something from the Emerald City—something he had stolen! In return, Wag waited on the bad little gnome and listened to his grumblings against everybody in Oz. All the furnishings of this strange cave had been stolen from various houses in the Emerald City. The twenty-seven brocade cushions had been taken, one at a time from the palace; the green emerald lamp also. Every day Ruggedo ran innocently about the city, pretending to visit this one and that, and every day cups, spoons, and candlesticks disappeared.

The doll’s rocker, which Ruggedo insisted upon calling his throne, had been taken from Betsy Bobbin, a little girl who lived with Ozma in the palace. He had lugged it through the secret passage with great difficulty. The wooden doll had been stolen from Trot, another of Ozma’s companions. She was Trot’s favorite doll, for she had been carved out of wood by Captain Bill, an old one-legged sailor, who was one of the most celebrated characters in all Oz. He had carved her for Trot one day when they were on a picnic in the Winkie Country, from the wood of a small yellow tree, and as Captain Bill had old-fashioned notions, Peg was a very old-fashioned doll. But she had splendid joints and could sit down and stand up. Her face was painted and as pleasant as laughing blue eyes, a turned-up nose, and a smiling mouth could make it. Trot had dressed her in a funny, old-fashioned dress, with pantalettes, and then, thinking Peg too short a name, the little girl had added Amy, because she was so amiable, she confided laughingly to the old sailor. Captain Bill had wagged his head understandingly, and Peg Amy had straightway become the most popular doll in the palace; that is, until she disappeared, for Ruggedo had found her one day in the garden and, chuckling wickedly, had carried her off to his cave.

How Trot would have felt if she had seen her poor doll being shaken and scolded by the old Gnome King! But Trot never knew. She hunted and hunted for her doll, and finally gave up in despair. Fortunately, Peg was well made, or she would have been shaken to bits, but her joints held bravely, and nothing—not even the terrible scolding of the bad old gnome—could change her pleasant expression.

Being the sole subject of so wicked a King, however, was wearing even for a wooden doll, and Peg was beginning to show signs of wear. Her nose was badly chipped, one pantalette was missing, and both sleeves had been jerked from her dress by the furious old gnome. If the rabbit was around, Ruggedo did not shake Peg as hard as he wanted to, but when the rabbit was gone, he pretended she was his old steward, Kaliko, and scolded and flung her about to his heart’s content.