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"Mr. Sage there? Very well, ask him to step in and see me as soon as he returns."

Colonel Walton replaced the telephone-receiver and continued to draw diagrams upon the blotting-pad before him, an occupation in which he had been engaged for the last quarter of an hour.

Since its creation two years before, he had been Chief of Department Z., the most secret section of the British Secret Service, with Malcolm Sage as his lieutenant.

Department Z. owed its inception to an inspiration on the part of Mr. Llewellyn John. He had conceived the idea of creating a secret service department, the working of which should be secret even from the Secret Service itself. Its primary object was that the Prime Minister and the War Cabinet might have a private means of obtaining such special information as it required. Department Z. was unhampered by rules and regulations, as devoid of conventions as an enterprising flapper.

In explaining his scheme to Mr. Thaw, the Chancellor of the Exchequer, Mr. Llewellyn John had said, "Suppose I want to know what Chappeldale had for lunch yesterday, and don't like to ask him, how am I to find out? I want a Department that can tell me anything I want to know, and will be surprised at nothing."

With Mr. Llewellyn John to conceive a thing was to put it into practice. He did not make the mistake of placing Department Z. under the control of a regular secret service man.

"I'm tired of red-tape and traditions," he had remarked to Mr. Thaw. "If I go to the front, they won't let me speak to a man lower than a brigadier, whereas I want the point-of-view of the drummer-boy."

Mr. Llewellyn John had heard of Colonel Walton's exploits in India as head of the Burmah Police, had seen him, and in five minutes the first Chief of Department Z. was appointed. From the Ministry of Supply, Mr. Llewellyn John had plucked Malcolm Sage, whom he later described as "either a ferret turned dreamer, or a dreamer turned ferret," he was not quite sure which.

In discovering Malcolm Sage, Mr. Llewellyn John had achieved one of his greatest strokes of good fortune. When Minister of Supply his notice had been attracted to Sage, as the man who had been instrumental in bringing to light—that is official light, for the affair was never made public—the greatest contracts-scandal of the war. It was due entirely to his initiative and unobtrusive enquiries that a gigantic fraud, diabolical in its cleverness, had been discovered—a fraud that might have involved the country in the loss of millions.

Mr. Llewellyn John had recognised that this young accountant had done him a great service, perhaps saved him from a serious political set-back. Incidentally he discovered that Sage was a very uneasy person to have in a Government-department. Sage cared nothing for tradition, discipline, or bureaucracy. If they interfered with the proper performance of his duties, overboard they went. He was the most transferred man in Whitehall. No one seemed to want to keep him for longer than the period necessary for the formalities of his transfer.

"Uneasy lies the Head that has a Sage," was a phrase some wag had coined. If a man wanted to condemn another as too zealous, unnecessarily hard-working, or as a breaker of idols, he likened him to Sage.

The chief of the department from which Mr. Llewellyn John took Malcolm Sage when Department Z. was formed is said to have wept tears of joy at the news. For months he had striven to transfer his unconventional subordinate; but there was none who would have him. This unfortunate chief of department had gone through life like a man wanting to sell a dog of dubious pedigree. In the Ministry he was known as Henry II, and Sage came to be referred to as Beckett.

In Department Z. Sage found his proper niche. Under Colonel Walton, a man of few words and great tact, he had found an ideal chief, one who understood how to handle men.

As John Dene had left 110, Downing Street, with Sir Lyster and Admiral Heyworth, Mr. Llewellyn John had rung up Colonel Walton and requested that full enquiries be made at once as to John Dene of Toronto, and a report submitted to him in the morning. That was all. He had given no indication of why he wanted to know, or what was John Dene's business in London.

Hardly a day of his life passed without Mr. Llewellyn John having cause to be thankful for the inspiration that had resulted in the founding of Department Z. Nothing seemed to come amiss, either to the Department or its officials. They never required an elaborate filling-up of forms, they never asked for further particulars as did other departments. They just got to work.

Mr. Llewellyn John had, once and for all, defined Department Z. when he said to Mr. Thaw, "If I were to ask Scotland Yard if Chappeldale had gone over to the Bolshevists, or if Waytensee had become an Orangeman, they would send a man here, his pockets bulging with note-books. Department Z. would tell me all I wanted to know in a few hours."

In his first interview with Mr. Llewellyn John, previous to being appointed to Department Z., Malcolm Sage had bluntly criticised the Government's methods of dealing with the spy peril.

"You're all wrong, sir," he had said. "If you spot a spy, you arrest, imprison or deport him, according to the degree of his guilt. Any fool could do that," he had added quietly.

"And what would you do, Sage?" inquired Mr. Llewellyn John, who never took offence at the expression of any man's honest opinion, no matter how emphatically worded.

"I should watch him," was the laconic reply. "Just as was done before the war. You didn't arrest spies then, you just let them think they were safe."

For a few moments Mr. Llewellyn John had pondered the remark, and then asked for an explanation.

"If you arrest, shoot or intern a spy, another generally springs up in his place, and you have to start afresh to find him; he may do a lot of mischief before that comes about." Sage gazed meditatively at his finger-nails, a habit of his. "On the other hand," he continued, "if you know your man, you can watch him and generally find out what he's after. Better a known than an unknown danger," he had added oracularly.

"I'm afraid they wouldn't endorse that doctrine at Scotland Yard," smiled Mr. Llewellyn John.

"Scotland Yard is a place of promoted policemen," replied Sage, "regulation intellects in regulation boots."

Mr. Llewellyn John smiled. He always appreciated a phrase. "Then you would not arrest a burglar, but watch him," he said, glancing keenly at Sage.

"The cases are entirely different, sir," was the reply; "a burglar invariably works on his own, a spy is more frequently than not a cog of a machine and must be replaced. He seldom works entirely alone."

"Go on," Mr. Llewellyn John had said, seeing that Sage paused and was intently regarding his finger-nails of his right hand.

"Even when burglars work in gangs, there is no superior organisation to replace destroyed units," continued Sage. "With international secret service it is different; its casualties are made good as promptly as with a field army."

John Dene of Toronto

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