Miles also runs into an old friend of Lady Partridge, an elderly former explorer named Baltinglass of Araby, who eagerly aids them. Just before they can reach the Palace of Laughter, Miles and Little are taken by a violent gang of orphan boys called the Halfheads and caught between the constant rivalry of two other gangs, the Stinkers and Gnats. With the help of Henry, one friendly member of the Halfheads and after the betrayal of String (who holds a grudge against Miles after being replaced by him), Little and Miles reach the Palace of Laughter and find it is nowhere near the pleasant place they expected it to be. The Great Cortado uses a method he has devised with the mysterious Dr. Tau-Tau to make people laugh uncontrollably and steal the laughter and happiness out of their souls. He then sells a drink that can temporarily make them feel themselves again. Cortado plans to spread his influence across the towns and eventually the world.