Flem finally returns to town, bringing with him a herd of ponies and a Texan horse hand. The ponies are vicious and untamed, but the Texan insists that they will settle down in a few days. The men, including Ratliff, argue over who owns the horses and who Snopes will convince to buy them. Ratliff declares he wouldn’t buy any animal from Flem. The ponies escape the barn, nearly killing Eck Snopes’s little boy Wall. The Texan continues to insist that the ponies are gentle. The Texan starts an auction for the horses, but the townspeople do not want to buy them. He finally offers a pony to Eck Snopes for free, provided that he’ll start the bidding on the next horse. This leads the townspeople to start bidding on the horses, not wanting to let Eck Snopes get two horses so cheaply.

One man, Henry Armstid, spends his last $5 on a pony, against his wife’s wishes. Flem arrives at the end of the auction. Henry asks the Texan to catch his horse for him, but the Texan says it’s Henry’s horse and that he can catch it himself. Henry tries, forcing his wife to help him, but it is evident he can’t do it.