Нужно превратить скобки либо в past continuous or the simple past it was midnight, and the main street of the small town (be) empty, except for one man. he (stand) outside a shop on the corner of the street. a policeman turned the corner, and when he (see) the man , he (ask) him what he (do). the man (say) he (wait) for a friend, but the policeman (not believe) him. he (ask) him if he lived in the town. the man said no, he (stay) at a hotel for a few days. he (tell) the policeman the name of the hotel.

It was midnight, and the Main Street of the small town was  empty, except for one man. He was standing outside a shop on the corner of the street.
A policeman turned the corner, and when he saw the man , he asked him what he did. The man said he was waiting for a friend, but the policeman didn't believe him.
He asked him if he lived in the town.
The man said no, he had stayed at a hotel for a few days.
He told the policeman the name of the hotel.