The second such service was represented by Ogram Newton, a bank examiner in the service of the treasury department. His district was central New York. For three years he had been taking an occasional look into the books of the various national banks of his district, checking up assets and liabilities, inquiring into the value of the paper held by the banks. Two weeks before Conrad Compton gave his party Newton had been in New Beaufort and had gone thoroughly into the affairs of the bank. Its books were models of efficiency and there was no flaw to be found in any of its securities or loans. Newton had given the institution his O. K. and had passed on to other towns.

But there was a feeling of unrest that haunted the young examiner. It seemed that his subconscious mind was aware of an oversight that had been made by his working faculties. He was not able to sleep well of nights, and in his sleep the various accounts of the New Beaufort bank insisted on visualizing themselves. Finally the recurring accounts eliminated themselves with the exception of one which persisted. The loans and discounts account kept thrusting itself into his consciousness.

"By Jove!" he exclaimed suddenly to himself. "The entries in that account, the amounts of money that have been run through it, are out of all proportion to the other business of the institution. Something is wrong with loans and discounts."

So Newton hurried back to New Beaufort and was that night a guest at the party given by Conrad Compton, with whom he had built up a friendship through years of association in the line of his work. He was to take a further look at the loans and discounts on the morrow.

The Department of Justice is the prosecutor in cases of violations of the national banking law. Its work is entirely apart from that of the bank examiners of the treasury department. The New York office of this service, as a matter of daily routine, received the information that David Lorance, assistant cashier of the First National bank of New Beaufort, was regularly placing heavy buying and selling orders with a certain broker in Wall Street.

For this reason, Agent Gard got the assignment to come to New Beaufort, and was thus the representative of the third detective service. His windows at the grocery store looked out upon the side door of the bank opposite. He was bland and inconspicuous, but he was an expert accountant, had taken a degree in the law and worked three nights a week in the gymnasium in New York when he was in town.

The Compton home stood on a hill just back of the town. It was known as Stone Crest and was the most ambitious establishment thereabouts, being always pointed out with pride to visitors. The banker was a widower, but given to entertainment and to charity. The members of the board of aldermen often met at Stone Crest to discuss those matters that had to do with the well-being of the town. Teas were given there whenever its charitable women were inaugurating some new venture. The party to-night was a semipublic affair, for it was in commemoration of a centennial anniversary of that occasion when the first settlers had fought off attacking Indians from their stockade through a day and night.

Conrad Compton was a tall, graceful, nervous man, with a high forehead and a mass of wavy hair. His features were of a perfect regularity and the whole face was so small as to give it somewhat the appearance of that of a woman, an impression that was heightened by its absolute pallor.

Ogram Newton, the bank examiner, watched his host narrowly as he received his guests, as he directed their entertainment by a party of professionals who had been brought up from New York for the occasion, as the ices were served. He thought the banker was a bit paler than usual and his natural nervousness seemed somewhat accentuated. Once during the evening he had drifted into the library which happened to be empty of guests, and had found the host peering out of a window that commanded a view of the town.

"I trust you will pardon my preoccupation," said the banker, turning again to his guests, "I seem to have a way of feeling lonesomest when I have most company."