The narrative recounts the festivities associated with steamboat racing. In particular, Twain describes the charged atmosphere of the races, and how excited everyone is during the festivities. On racing days, passengers are not allowed onto the steamboats so that he boats might go faster. Despite this, Twain finishes the section by using charts and calculations of his own to show that steamboats have not really become faster despite claims to the contrary.

Twain returns to the difficulties associated with piloting on the Mississippi, this time making mention of man-made cut-offs that affect steamboats. These cut-offs entail ditches that are dug by men who want to try to make the river’s course straighter. Though shortening the way, they inadvertently create cut-offs on parts of the river. Twain recalls stories of ghost boats, which are steamboats that have become stuck on these cut-off pieces of river that are now sectioned off from the main body of water. Twain also introduces Stephen, a man who borrows money from everyone he can find, including another character named Yates. Stephen promises to pay everyone back, and apologizes profusely whenever he encounters his debtors. His plan is to pay everyone back alphabetically based on their names.