The correct answer is option 'C': the midwife had placed the stillborn child under the bed. Let's explore the details of this answer:

Under the bed:
- The midwife placed the stillborn child under the bed. This implies that she hid the child's body beneath the bed, possibly to keep it out of sight or to avoid causing distress to the parents.
- Placing the stillborn child under the bed suggests that the midwife might have wanted to handle the situation discreetly and maintain a sense of privacy for the grieving family.

Other options:
a) She held the child in her arms:
- This option suggests that the midwife physically carried the stillborn child in her arms. However, the question specifically asks where she placed the child, and holding the child in her arms does not align with the given options.

b) Gave him to Susan’s mother:
- This option implies that the midwife handed the stillborn child to Susan's mother. However, the question does not mention Susan or her mother, making this option irrelevant.

d) Handled him to Joe:
- This option suggests that the midwife handed the stillborn child to Joe. However, there is no context or mention of Joe in the given information, making this option irrelevant as well.

In conclusion, the correct answer is option 'C': the midwife had placed the stillborn child under the bed. This choice indicates that the midwife concealed the child's body beneath the bed, possibly to handle the situation discreetly and respect the privacy of the family.