Sherlock Holmes is a fictional creation, the central character in a series of short stories written by Dr John Watson and published in The Strand Magazine. Watson conceives of Holmes as a way for him to solve crimes incognito, as he views detective work as merely a hobby and does not want the attention it would bring to his medical career. However, when the reading public demand to actually see "Holmes", Watson hires a washed-up stage actor, Reginald Kincaid, to play the part. Kincaid slowly learns to memorise the doctor's exacting, detailed instructions every step of the way and manages to convince the public that he is indeed "Holmes".
After a major case, Kincaid oversteps his boundaries with Watson, who fires him. Realising that he should have been honest from the start, Watson decides to write Holmes out of his stories and replace him with a new character, "The Crime Doctor", based on himself. Unfortunately, the idea of a physician rather than a detective solving crimes is rejected by the public, and when Watson attempts to investigate a crime of arson at a paper warehouse, he quickly finds that no one is willing to share information or co-operate with his inquiries.
Soon after, the British government contacts Watson, requesting that "Holmes" solve a major theft. A government mint recently reported the disappearance of printing plates for £5 banknotes, with the printing supervisor, Peter Giles, having gone missing on the night of the robbery. The counterfeiting of these notes would cause the inevitable collapse of the economy if they were allowed to circulate. Watson is therefore forced to hunt down a drunken Kincaid and clean him up before accepting the case.
Scotland Yard's Inspector Lestrade is jealous of "Holmes" and refuses to let him or Watson participate in the official investigation. Rather than relying on the regular police, therefore, Watson turns to the twelve-year-old street urchin, Wiggins, the leader of a street gang that he calls the "Baker Street Irregulars", paying them to keep an eye on people and locate evidence. One line of enquiry leads Watson to the printer's daughter, Leslie, whom he and the womanising "Holmes" invite back to their quarters to recover from the shock of false evidence of her father's death.
Watson and "Holmes" discover that the master criminal Professor James Moriarty is behind the theft and find him on the docks while receiving a consignment of printing ink. Watson is apparently killed and "Holmes" is left to rely on himself, using everything he has learned to solve the case. The trail takes him to an abandoned theatre where the forgeries are being printed. There, he discovers that Watson is still alive after all and the two team up to defeat Moriarty for good and recover the missing plates. In the process, Leslie turns out to be an imposter in the pay of Moriarty.
When they return to 221B Baker Street, "Holmes" announces to a reception committee of reporters that he intends to retire and gives full credit to the qualities of his "partner" Watson. For his part, Watson assures the public that, far from this being the end, the team of Sherlock Holmes and Dr. John Watson will continue their detective work from now on as friends.
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