Question

why did iron master realised not to hand over the peddler to sheriff

Answer 1

The iron master realised that the peddler need not be handed over to the sheriff because the peddler had not caused any harm either to his household by stealing or to his daughter. He realised that the poor peddler was attracted by the good things that he would be offered by the iron master. But seeing that he was ready to leave by putting on his old rags, he realised it would be useless to hand over the man to the sheriff.