We use the anagram to read Malloy's disc, give Mr. Witt a call, and then head off to his apartment to snoop around and see if we can find his puzzle box. The toughest puzzle in the game resides in here, but we won't just find it yet.
Also, the bit where Tex extracts the pole from his pants is a goofy little play on the fact that he's carrying around a ton of useless junk that has no real business fitting anywhere on his person.
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