There is a loose tile.... (spoiler) [color:"#3A495A"]in the catacombs on level 2, half way between the entrance and the stairs to level 3, where you will find Slasher.[/color] (highlight the text to read)
When you find Slasher and identify it, it will be called that. As you found, he takes all axes in your inventory if you do not have Slasher, or do not have it identified. However, once you have it identified, you can remove all axes from your inventory, and still 'give' him the axe. When the quest is completed you get experience points and the orcs leave after a short conversation.
