Sam is excited that the first ever registered letter has come through his post office, in this case for Joe. Joe is nervous when he learns that it is from a law firm, and even more nervous when he reads the letter: that their client, a Mr. Herbert A. Smith - who Joe doesn't know - has been looking for him, and will know that Joe is indeed that person if the registered letter gets to him. When Smith arrives, Joe still doesn't know who he is or remember ever meeting him. But Smith tells Joe a story of a kind favor he did for him twenty years earlier in Erie, Pennsylvania when he was down and out. That favor was the start of his redemption. Smith, now seemingly wealthy, wants to repay that favor. Joe isn't too sure about Smith after he tells a further story of his business conglomerate, which has just issued public offerings. Joe thinks Smith may try and swindle him into investing in the ground floor of this fake business venture. But Smith irks Joe even more when he says the shares are all accounted for, which means that he isn't going to provide Joe any shares, free or otherwise. Joe ultimately settles on his assessment of Smith and tries to get the best deal for himself. However, Joe finally remembers back to twenty year earlier, which may make him think he made the biggest mistake of his life.