Watson is married and in civil practice. Holmes still uses cocaine.The King of Bohemia is engaged to Clotilde Lothman, princess of Scandinavia. Formerly, the king was informally engaged to Irene. The king jilted Irene because he felt that she was greatly inferior to him socially and Irene feels very much misused. She has letters which the king wrote to her including a photo of the two of them together, and threatens to send them to Clotilde on the day that her (Clotilde's) and the king's betrothal is announced publicly.Holmes is hired to recover the photo and letters. The king tells him that several attempts have been made to do this but that all have failed.Holmes, in disguise, is casing Irene's house and is roped into being a witness at her and Godfrey's wedding. She gives him a gold sovereign for his services which he plans to wear on his watch chain.Holmes stages an elaborate con and determines that Irene keeps the photo in a secret compartment beside the fireplace.Returning to Baker Street in deep twilight, Holmes is just opening his door when he hears a passing Early next morning, they call on Irene, planning to take the photo. Irene and Godfrey have fled to the continent, taking the photo with them. She leaves a photo of herself for the king and a letter for Holmes, in which she says that she was cleverly tricked into betraying the photo's hiding place but instantly realized what she had done and followed Holmes back to Baker Street to confirm her suspicions.Since she is now married, sending the photograph to Clotilde would involve Irene and Godfrey in the ensuing scandal so Irene plans to keep it as a souvenir. Holmes refuses a heavy emerald encrusted ring but accepts Irene's photograph as payment for his services.