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Performing live for the troops at Camp Roberts, Watson tells a tale of a murder in wax. In flashback we join Holmes as he gathers the details from the police. In further flashback, we relive the moments the young man tells about his girlfriend, Bessie, being stabbed. More crimes show up, with the same manner of stabbing. Hearing the drama of 10 murders, Holmes focuses on obscure clues, and starts work on the case.
What does a residue of colored wax indicate? Watson thinks it may have a theatrical connection, but at Holmes suggestion wax museums are investigated. A display of a comprehensive collection of killers is found, criminals from earlier cases of the great detective. An offer of a reward to spend the night in the scene of horror is a publicity stunt of the museum. Holmes suspects something more sinister is going on, and plans to trap a killer.
Holmes keys in on an important clue, a play on words and names. Disguised as Watson, Holmes arms himself and goes to spend the night in the museum. What danger awaits? Will Watson come to aid his friend in time?