"A writer, is it? I don't know much about writing. Sit and listen to the old folks, that's how we've always done it. Sometimes a traveler. Seems proper this way. Then again..." by the time Edward mentions the bottle of gin, the old man has already sat back into his easy chair - another relic that had probably belonged to the Tubbs house at some point and still sturdy, but begrimed by time and use. The man eyes the bottle greedily but getting up again seems beyond his limits, so he waves at Edward to distribute the drinks. "Those old bones are not long for this world and then who'd be there to tell the stories? Might as well put them in your book. Thirsty work this, talking. The pipes need some grease; there's tumblers over there, on the counter. Now, let's see..."
Old Peglar begins spinning a yarn about a king of a Faerie court with greed for music. He would send his servant to walk from inn to inn, look for travelling minstrels, fiddlers and bards, and then confuse the roads so they would end up in his castle, where he would make them play the same ancient tune over and over. The old man is good at his craft and tells the story with passion (encouraged by the gin), but his tale doesn't appear to hold any useful clues. Nothing Maximilian and Edward have found out so far suggests that Mr. Tubbs has any skill with the fiddle or that his beautiful voice would cause a fairy king to covet his company.
There doesn't seem to be anything exceptional about the house that Maximilian notices. It is exceedingly poor and moderately dirty - someone must be coming to sweep from time to time, probably the same someone who has painted the shutters and had tended the garden. Peglar himself doesn't look to be capable of much, as evident from his laborious journey from his chair to the door and back. Why would Tubbs employ such a man to keep the heavy canal lock? Charity is the most obvious answer. Charity and... And a little something Mr. Tubbs has added to his estate, along with his "Faerie forest", to make it more mystical. Peglar is a Hermit, a profession that had been waning in popularity at the time of Maximilian's early childhood, but the young man has still heard tell of it. Rich families would employ a man to live in some hovel in an out-of-the-way courner of their estate, donating necessities and scraps from their tables; and from time to time they'd bring their guests to see him. The hermit would entertain by reciting poetry, telling fortunes or displaying wisdom in some other way, which would make the visiting ladies and gentlemen feel enriched and enlightened.
"So what do you make of it? Did you remember it all or should I tell it again?" Old Peglar asks somewhat smugly, after the young drummer boy had defeated the king after several displays of courage and cleverness.