Watson confronts Laura Lyons who admits that Charles Baskerville had financed her typewriting business and says she did not meet him on the night of his death. Watson is also confronted by Franklin who claims that he saw the escaped convict on the moor hiding in a old stone hut. Watson decides to investigate and finds the stranger is none other than Holmes! Holmes reveals that his prime suspect is Stapleton, who is the husband not the brother of Beryl. When they hear a scream they run out to find a dead man at the foot of a cliff. It is Sheldon the convict who was wearing Henry Baskerville old clothes. After meeting Stapleton, Holmes and Watson go to Baskerville Hall where Holmes tells Sir Henry to keep his dinner engagement with the Stapletons for the next night, although neither Holmes or Watson can go with Sir Henry as they must leave for London. Instead of leaving for London, Holmes and Watson confront Laura Lyons who is forced to admit that Stapleton had promised marriage to her. The meeting with Sir Charles was to have been a loan connected with her divorce expenses. It was Stapleton who persuaded her not to meet with Sir Charles at the last second and also to keep quiet about the note. Holmes and Watson meet Inspector Lestrade who has a arrest warrant. That night the three men spy on Stapleton and Sir Henry; when Sir Henry leaves to walk home, a gigantic glowing hound nearly attacks him but is killed by Holmes and Watson. At Stapleton's house they find Beryl who has been tied up and beaten by Stapleton. Stapleton flees to the moor but falls into the Grimpen Mire.