Holmes tracks down the ring to an antiques shop, where he confronts Hinkel. During their cat-and-mouse conversation, he even tells the spy that "the man who has it doesn't know he has it", with the matchbook in plain sight. Holmes is taken prisoner, but just as he and Partridge are about to be murdered, the police, summoned by Watson by prior arrangement with Holmes, break in and, after a gunfight, rescue the pair. Hinkel gets away, along with the matchbook, however. Holmes races to the office of Senator Henry Babcock, having led Hinkel to believe the microfilm is under a stamp of a letter in the senator's possession. Holmes arrives first and, as Hinkel eavesdrops, reveals the importance of the letter. Hinkel takes the letter at gunpoint, only to have the police capture him. Holmes then takes the matches and sets fire to the letter, before revealing that the microfilm was in the matchbook all along.