Although Fred played hide-and-seek with the children, he also took them to a "secret cave." But sensing he would be arrested, child-molester Fred left town before he could be confronted.Gwen reassured her grown-up daughter: "He""s gone.He can""t hurt you anymore." She thought the dreams were only "repressed memories from a terrible, terrible time."Nancy sought to track down the other kids in the picture, and discovered that all of them had died - usually in heir sleep.Ethan surrendered the currency to Claire, but then noted: "Claire was wrong about one thing, Jim" - as he put on the video-transmitting glasses and transmitted an image of Phelps to Kittridge, proving that the traitorous Phelps was still alive: "I""mnotthe only one who""s seen you alive.He had first discussed its destruction with Nicholas Flamel, who agreed that he had enough Elixir to last awhile before his death.When the lights are turned back on, the sapphire is missing.Lady Patricia is angered at her adopted sons, believing that they are playing a cruel joke upon her, but each of them deny stealing it.Ruin their grazing.Starve the livestock.Who""s paying you to do that, Mr.Mulwray? That""s what I want to know.Mulwray looks down and doesn""t answer - he is still investigating the truth for himself.Gittes trails Hollis Mulwray, who spends most of his ime checking out the city""s water supplies.Gittes spies on him with binoculars as a noisy fly buzzes around his head - but he doesn""t understand Mulwray""s paradoxical actions.