In this chapter, we learn that Tibby's family has been loyal to the valley for generations, and Tibby has never mistreated them. Tibby asks where his granddaughter is, and he tells her that she and two of her friends stole his diamond quicks. He says that he will take everyones lives as compensation for the loss of his diamonds, and his furnace. He tells Tibby that he has already been using Tibby as a furnace for many years, but Tibby is the first one to discover the truth.