A few days after Lemony investigated the Baudelaire's refrigerator, he made two more unpleasant discoveries. The first was at lunch in the Cacophonous Cafeteria, where he ordered spaghetti and meatballs. He often just toyed with his food, but that day he cut into one of the meatballs, disclosing a miniature camera hidden inside. He was being photographed!
The second discovery was when the man in the seat opposite Lemony in the train left his seat for a few minutes to go to the lavatory. Lemony, his suspicions aroused by the meatball, decided to take the opportunity to search the man's luggage. He found photos of himself dating back for the last six months, and the start of a report to I.B. -- Isabella Baudelaire.
Lemony decided it was time to pay a visit to Isabella. He set off early the next morning. This time he took a different secret route that almost no-one knew. There was a passage from Lousy Lane to the Fountain of Victorious Finance and the Fickle Fountain. Branching off in the middle of that passage was another hidden passage that led to the one connecting 667 Dark Avenue to the Baudelaire's.
As he pushed open the trapdoor, Lemony heard voices.
"We've sent the children off to the beach for the day so we can conduct our business undisturbed," came Isabella's voice.
Lemony had noticed on his last visit that there were concealed spy-holes all over the house. He located one that gave him a magnified view of the Baudelaires in the dining room. There was a tube that conducted sound from the room also.
"Would you like some brandy, Count Olaf?" offered Mr. Baudelaire.
"Yes!" said Olaf, grabbing the whole bottle from him. "I'm in a bad mood!"
"Why?" asked Isabella.
Count Olaf slammed down the wet whiskey bottle on the table, not bothering to use a coaster. Lemony could see he had made an unsightly ring on the wooden table.
"The weather report this morning said there is going to be a thunderstorm tonight. I was planning to burn down the Valorous Farms Dairy and that will make it much harder," said Olaf.
"I'm sure you'll manage," said Isabella. "You always do. Anyway, I have some good news for you."
"What is it?" asked Olaf.
"The detective I hired has proof that Lemony Snicket is alive -- he sent us photos. We can use them to get the police hunting after him again," said Isabella.
"I think using the photos themselves is a bad idea. They can be traced back to you. That'll blow your cover as double agents," said Olaf.
Mr. Baudelaire had a suggestion, "Why don't we trace Lemony's face from the photos and send the tracings to the police as an anonymous tip?"
"Good idea, darling," said Isabella.
They spread the photos out on the table and started trying to trace Lemony's face.
"By the way, have you heard anything about a woman who is snooping into the Royal Gardens fire after all these years? She tried to bribe an old attendant of the Poisonous Pavilion using a stolen credit card," said Ferdinand. "He informed me since I was on the Board of Directors."
"No, I hadn't heard that," said Olaf. "I wonder who it could be?"
(Note from K.B.: We now know that it was "Justice" Strauss).
"That was your first fire, wasn't it?" asked Isabella.
"Everyone thinks so, but actually no. I was sitting peacefully in the Poisonous Pavilion drinking whiskey and contemplating the daturas, when I saw a man run by with a mushroom in a tightly-sealed glass box. Then the fire he set engulfed the building. I was seen running away, but fortunately I was able to frame Lemony," said Olaf.
"Was it Gregor Anwhistle?" asked Ferdinand.
"Yes, and the plant he stole was a Medusoid Mycelium. The Official Fire Department had to burn the rest of the Royal Gardens and cover them with specially-treated dirt to prevent the spores from spreading," said Olaf.
"That wasn't long before the schism," said Isabella.
"That theft and arson inspired me. Why not form my own branch of the V.F.D. to set fires for fun and profit?" said Olaf.
"An excellent plan," said Isabella. "We've always favored your side of the schism, though my husband and I pretended to be on the quiet side."
"When our children grow up a bit more, we'll get them to join you." said Ferdinand. "We've set up our will so that you'll be their guardian if anything happens to us."
Lemony had heard enough. He shut the peephole with a snap. Unfortunately, the sound tube conducted and amplified the sound to the people in the dining room.
"There's someone spying on us!" said Isabella. "We've got to stop them or our cover is blown."
"If people are watching you, your cover is already blown," said Olaf. "I've got a better idea. You're no further use to me, so I'll burn you up and steal your fortune from the children. Thank you for making me their guardian!"
Olaf, expert arsonist that he was, dashed the rest of the brandy onto the curtains and set them ablaze with a match. Mr. Baudelaire rushed at him, but Olaf knocked him to the floor with a single punch.
Isabella Baudelaire ran from the room. Count Olaf pursued, but turned down a different hallway by mistake and caught sight of Lemony.
"At last we meet again," said Olaf. "Hee hee heh heh theater critic!"
He charged Lemony and they struggled. Lemony fought valiantly, but Olaf was by far the stronger. He pummeled Lemony until he knocked him out.
When Lemony woke up, Olaf was gone. The room was filled with smoke and flames were closing in from all directions.