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Watson begins by describing the effects the moor has on the soul: he feels about though he is amongst prehistoric man, rather than in modern England.
Watson explains that the locals believe Selden has left the area, since it has been two weeks since his escape. He also confesses his worry for the Stapletons, who live far removed from their closest neighbor. He then notes that Sir Henry seems to be romantically interested in Beryl Stapleton. However, he worries that Stapleton himself - who had recently shown Watson the place of Hugo Baskerville's fabled death - would not approve of a match between them.
Watson then describes his interactions with others. Dr. Mortimer had recently toured him through the yew alley where Sir Charles died. Meanwhile, Watson has visited Mr. Frankland, of Lafter Hall, whom Watson explains is well known and frequently distrusted for his litigious nature. He is slowly spending his fortune on lawsuits, many of which are arbitrary and rooted in outdated laws. Frankland is also an amateur astronomer; he owns a telescope.
In the last section of the letter, Watson describes what he considers the most essential element of his visit thus far: the continuing mystery of the Barrymores. Sir Henry asked Barrymore directly whether he had received the telegram, and the man, surprised, confirmed that Mrs. Barrymore had given it to him. Watson continues to note the signs of crying on Mrs. Barrymore, and worries that her husband is abusive. The night before writing this letter, Watson had awoken at 2:00 a.m. and saw a man who looked like Barrymore crossing the moor towards the house, and then entering an unoccupied part of the house. Watson snuck after him, and saw the man peering out of the window. After a while, Barrymore groaned and then left for his room. Later that night, Watson heard a key turn in a lock.