Alfred is reading a newspaper and advertising for cereal. It's summer. He's wearing a straw hat and sweating, using the paper for a fan. He's in Florida.
The horse races are in Florida, and he's trying to sell cereal to the riders. Horses eat oats, and this (cereal) has wheat in it; that's not a stead diet for them.
Alfred lost his money gambling on a horse. The horses' name is Oliver. He's a brown horse. Alfred bet on Oliver because he's fast.
The paper has the odds of the race on it, 10:1 that Oliver would lose. He bet $20 on this race, for a total of $20,000. Alfred is going to quit betting and eat the cereal, because that's all he's going to have. Alfred is single, because his wife would kill him if he lost all that money!
Oliver the horse goes to the bank. He draws out the money. He has a note from his owner saying he can. Oliver bets $20,000 on himself for the next race, and he