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When ten-year-old orphan Peter Augustus Duchene encounters a fortune teller in the marketplace one day and she tells him that his sister, who is presumed dead, is in fact alive, he embarks on a remarkable series of adventures as he desperately tries to find her.

When a child goes missing from the Orphan House in the town of Stone-in-the-Glen, the mayor suggests the kindly Ogress is responsible, but the orphans do not believe that and try to make their deluded neighbors see the real villain among them.