In this chapter, the author reveals the depth of Tom's unscrupulous behavior. Not only has Tom been stealing from the residents of Dawson's Landing, he has even stolen his own uncle's silver watch

When Tom visits Wilson at home, a scheme to find the thief is revealed. This scheme, which Wilson has devised, will be at the center of the murder trial. The thief, Wilson says, will not be able to sell Luigi's stolen dagger, because the police and pawnbrokers all around Dawson's Landing have been notified of the theft. Furthermore, there is a $500 reward for the return of the dagger, and a $500 reward for the identification of the thief. Tom quietly despairs at this news, since he planned to sell the dagger. Now that he is unable to do so, his desperation increases, moving the plot towards the murder of Judge Driscoll.

Luigi, who ostensibly has the same code of gentlemanly conduct as the Judge, agrees to duel with the Judge to settle the disagreement between Luigi and Tom. The Judge, fearing he might die, decides to restore Tom to the will, blaming himself for Tom's failings: "He is worthless and unworthy, but it is largely my fault.