Now the days passed slowly and wearily. Many of the Dwarves spent their time piling and ordering the treasure; and now Thorin spoke of the Arkenstone of Thrór, and bade them eagerly to look for it in every corner.

"For the Arkenstone of my grandfather," he said, "is worth more than a river of gold in itself, and to me it is beyond price. That stone of all the treasure I name unto myself, and I will be avenged on anyone who finds it and withholds it."

Bilbo heard these words and he grew afraid, wondering what would happen, if the stone was found—wrapped in an old bundle of tattered oddments that he used as a pillow. Thorin grew more suspicious every day the stone went unfound, and had even begun to have doubts about the loyalty of his own kin. All the same Bilbo did not speak of it, for as the weariness of the days grew heavier, the beginnings of a plan had come into his little head.

In Dale Hannah watched grimly while her hosts took advantage of the siege to further their preparations for war. The Lake-men had relieved the old armories of their contents, and the Elves were teaching the men how to fight, for many of them were fishermen by trade and knew little of weapons. Before she had often been in the company of Legolas and Bard, but they were now more often than not busy carrying out tasks among their people. And always she could feel a pair or two of eyes upon her watching her every move to make sure she did not try to run or conspire with the Dwarves. Hannah began to feel rather lonely and to wish that Gandalf were there to help her and to give her advice.

Things had gone on like this for some time, when their camp received an unexpected and most welcome visitor.

"Let me through! Make way!" shouted a voice that was very familiar to Hannah's ears and had been much missed. She ran out and saw the Wizard riding through the ruined streets.

"Gandalf!" she cried out in surprise and relief, overjoyed to see her long absent mentor again.

"Hannah!" said the wizard, looking equally surprised to see her among the men and the Elves. He immediately brought his horse to a stop and dismounted. "What are you doing here?" he asked with no small amount of concern. "Who is in charge?"

"Who is asking?" said Bard, approaching them. He had heard Hannah's raised voice and had come to see what might have alarmed her. Hannah quickly introduced the wizard and the bowman to each other, and did her best to summarize the current state of affairs for her mentor as they walked him over to the Elvenking's tent. There they met with Thranduil and Legolas, who were surprised to learn the mentor Hannah had spoken of was none other than a Wizard, and one known to them at that. However the Elvenking felt this newfound knowledge of the strange girl's mysterious background did help to somewhat explain some of her eccentricities and answered more than just a few of the questions that had so far remained unanswered.

"You must set aside your petty grievances with the Dwarves," said Gandalf sternly. "War is coming. The cesspits of Dol Guldur have been emptied. You are all in mortal danger."

"What are you talking about?" asked Bard while Legolas furrowed his brow and glanced questioningly at Hannah. Was this what she had meant went she told them that there was more to the Dwarves' quest than they knew?

"I can see you know nothing of Wizards. They are like winter thunder on a wild wind rolling in from a distance, breaking hard in alarm. But sometimes a storm is just a storm," said Thranduil with a cool air of indifference.

"Not this time," said Gandalf. "Armies of Orcs are on the move. These are fighters, they have been bred for war."

"Why show his hand now?" asked Legolas.

"Because we forced him! We forced him when the Company of Thorin Oakenshield set out to reclaim their homeland," snswered the wizard grimly. "The Dwarves were never meant to reach Erebor. Azog the Defiler was sent to kill them. His master seeks control of the Mountain. Not just for the treasure within, but where it lies, its strategic position. This is the gateway to reclaiming the lands of Angmar in the North. If that fell kingdom should rise again..." he looked hard at the Elvenking, knowing that Thranduil should need no explanation, given his past; "Rivendell, Lórien, the Shire—even Gondor itself will fall."

"These Orc Armies you speak of, Mithrandir," said the Elvenking; "where are they?"

For this Gandalf had no answer. He knew they were on their way, but he did not know from where or when they might arrive, and it seemed to the Elves and Men a very vague threat and did not seem to hold nearly as much weight with them as the Wizard and Hannah had hoped. Long and hard Gandalf tried to argue the matter with the Elvenking, but evening fell and still Thranduil remained unswayed.

"Since when has my council counted for so little? What do you think I am trying to do?" asked the Wizard angrily.

"I think you are trying to save your Dwarvish friends. And I admire your loyalty to them," said Thranduil with a subtle glance to the side at Hannah, whom they could see was standing just outside with Legolas and Bard through the open tent flaps. "But it does not dissuade me from my cause. You started this, Mithrandir. You will forgive me if I finish it." With that he swept past the Wizard and out of the tent. "Are the archers in position?" he asked Legolas.

"Yes, My Lord," the prince answered respectfully.

"Give the order: if anything moves on that mountain, kill it."

Needless to say, the others were shocked.

"I thought we were going to wait," said Legolas.

"I am done waiting. The Dwarves are out of time," said the king as he strode away into the night. Hannah glanced anxiously between her friend and his father before taking off after the king.

"Wait, wait! Please, don't do this!" she cried, rushing to catch up to him. "Your Majesty!"

"Do not call me that!" said the Elvenking sternly, pressing on without so much as a backward glance. "Do you think flattery will save your friends?"

"What?" said Hannah, blinking in confusion. "No, no—'Your Majesty' is simply a way to show deference for royalty where I come from. I am merely showing respect for your title. And, no, I do not think flattery will save my friends; but you can," she said earnestly.

"And why should I want to do that?" asked the king. "Did you not hear the order I just gave?"

"I did, and I don't think you gave it lightly. But I also think you may be kinder than you would have others believe," she said seriously, and this seemed to give him pause. "You treat your prisoners better than most, and despite what you told Mr. Bard and the Master, the truth is you went out of your way to help them. And I do not think you want this war. The only guarantees to be found in war are pain and suffering, and I know you know that—I can tell. You have the same look in your eyes as the one I've seen in my grandfathers', the look of someone who has been through hell and back. You know what it's like to be surrounded by death and destruction. That's why you wouldn't risk your people against the dragon to help Thorin's grandfather. You wanted to protect them from all of that." Thranduil looked back at her now and saw in Hannah's eyes a gentle understanding and a desperate need to protect her friends. "Have you become so blinded by your desperate desire to recover one necklace that you forgot that?"

"I have not. But winter is coming on fast. Before long there will be snow and ice, and supplies will be difficult to come by, even for Elves. The longer we wait the more time it gives the Dwarves to contact and gather allies of their own. If this happens battle will be unavoidable. And if we must fight then better to do it now, while the elements are still in our favor," said Thranduil sternly.

"Legolas, your son and my friend, is also here," Hannah reminded him. "He will also be drawn into battle if this conflict escalates. Please, for his sake if nothing else, don't do this."

Meanwhile Gandalf confronted the others.

"Legolas! Legolas Greenleaf, you cannot give that order," said the Wizard anxiously. "I know you don't agree with your father. Hannah told me it was thanks to you that he agreed to spare the Dwarves for as long as he has."

"It is true that I suggested the siege," said Legolas, "but I have no love Dwarves. I did so out of friendship for her, in an attempt to spare her pain. But now that my king and father has given the order, I must obey." And the prince left to deliver the Elvenking's message to the guards.

"And you, bowman! Do you agree with this?" asked the wizard, turning to Bard. "Is gold so important to you that you would buy it with the blood of Dwarves?"

"It will not come to that," said Bard. "This is a fight they cannot win."

"That won't stop them," said a small voice grimly. The wizard and the bowman looked over and saw that a very familiar hobbit was making his way towards them in the company of two elven-guards. "You think the Dwarves will surrender? They won't. They will fight to the death to defend their own."

"Bilbo Baggins!" cried Gandalf, surprised and delighted to find him there, safe and unharmed. Bilbo smiled at the Wizard, glad of his return. For the first time for many a day since seeing Hannah freed of her prison Bilbo was really delighted. But there was no time for all the questions that he immediately wished to ask.

That night the hobbit had made up his mind to carry out the plan that he had come up with. The sky was black and moonless. As soon as it was full dark, he went to a corner of an inner chamber just within the gate and drew from his bundle a rope, and also the Arkenstone wrapped in a rag. Then he climbed to the top of the wall. Only Bombur was there, for it was his turn to watch, and the Dwarves kept only one watchman at a time.

"It is mighty cold!" said Bombur. "I wish we could have a fire up here as they have in the camp!"

"It is warm enough inside," said Bilbo.

"I daresay; but I am bound here till midnight," grumbled the fat dwarf. "A sorry business altogether. Not that I venture to disagree with Thorin, may his beard grow ever longer; yet he was ever a Dwarf with a stiff neck."

"Not as stiff as my legs," said Bilbo. "I am tired of stairs and stone passages. I would give a good deal for the feel of grass at my toes."

"I would give a good deal for the feel of a strong drink in my throat, and for a soft bed after a good supper!"

"I can't give you those, while the siege is going on. But it is long since I watched, and I will take your turn for you, if you like. There is no sleep in me tonight."

"You are a good fellow, Mr. Baggins, and I will take your offer kindly. If there should be anything to note, rouse me first, mind you! I will lie in the inner chamber to the left, not far away."

"Off you go!" said Bilbo. "I will wake you at midnight, and you can wake the next watchman."

As soon as Bombur had gone, Bilbo put on his ring, fastened his rope, slipped down over the wall, and was gone. He had about five hours before him. Bombur would sleep (he could sleep at any time, and ever since the adventure in the forest he was always trying to recapture the beautiful dreams he had then); and all the others were busy with Thorin. It was unlikely that any, even Fili or Kili would come out onto the wall until it was their turn.

It was very dark, and the road after a while, when he left the newly made path and climbed down towards the lower course of the stream, was strange to him. At last he came to the bend where he had to cross the water, if he was to make for the camp as he wished. The bed of the stream was there shallow but already broad, and fording it in the dark was not easy for the little hobbit. He was nearly across when he missed his footing on a round stone and fell into the cold water with a splash. He had barely had scrambled out on the far bank, shivering and spluttering, when up came Elves in the gloom with bright lanterns and searched for the cause of the noise.

"That was no fish!" one said. "There is a spy about. Hide your lights! They will help him more than us, if it is that queer little creature that is said to be their servant."

"Servant, indeed!" snorted Bilbo; and in the middle of his snort he sneezed loudly, and the Elves immediately gathered towards the sound.

"Let's have a light!" the hobbit said. "I am here, if you want me!" and he slipped off his ring, and popped from behind a rock.

They seized him quickly, in spite of their surprise.

"Who are you? Are you the Dwarves' hobbit? What are you doing? How did you get so far past our sentinels?" they asked one after another.

"I am Bilbo Baggins," he answered, "companion to Thorin, if you want to know. I know your king well by sight, though perhaps he doesn't know me to look at me. But Bard will remember me, and it is Bard I particularly want to see."

"Indeed!" said they, "and what may be your business?"

"Whatever it is, it's my own, my good Elves. But if you wish ever to get back to your own woods from this cold cheerless place," he answered shivering, "you will take me along quick to a fire, where I can dry—and then you will let me speak to your chiefs as quick as may be. I have only an hour or two to spare."

That is how it came about that Bilbo was now sitting beside a warm fire in front of a large tent, and there sat too, gazing curiously at him, both the Elvenking and Bard. A hobbit in Elvish armor, partly wrapped in an old blanket, was something new to them. And the hobbit was flanked supportively by the wizard and his young apprentice.

"If I am not mistaken, this is the Halfling who stole the keys to my dungeons from under the nose of my guards," said Thranduil rather pointedly.

"Yes, sorry about that," said Bilbo a bit awkwardly, stirring the bowl of hot soup that Hannah had fetched for him. She had been overjoyed to see her little friend again and did her best to make him feel welcome. "But really you know," he said in his best business manner, "things are impossible. Personally I am tired of the whole affair. I wish I was back in the West in my own home, where folk are more reasonable. But I have an interest in the matter—one fourteenth share, to be precise, according to a letter, which fortunately I have kept." He drew from a pocket in his old jacket (which he still wore over his mail), crumpled and much folded, Thorin's letter that had been left on his chair in May!

"A share in the profits, mind you," he went on. "I am aware of that. Personally I am only too ready to consider all your claims carefully, and deduct what is right from the total before putting in my own claim. However you don't know Thorin Oakenshield as well as I do now. I assure you, he is quite ready to sit on a heap of gold and starve, as long as you sit here."

"Well, let him!" said Bard. "Such a fool deserves to starve."

"Quite so," said Bilbo. "I see your point of view. But there will be other difficulties. You have not heard of Dáin and the Dwarves of the Iron Hills?"

"We have, a long time ago; but what has that got to do with us?" asked the king.

"I thought as much. I see I have found some information you have not got. Dáin, I may tell you, is now less than two days' march off, and has at least five hundred grim Dwarves with him—a good many of them have had experience in the dreadful Dwarf and Goblin wars, of which you have no doubt heard. When they arrive there may be serious trouble."

"Why do you tell us this? Are you betraying your friends, or are you threatening us?" asked Bard grimly.

"My dear Bard!" squeaked Bilbo. "Don't be so hasty! I never met such suspicious folk! I am merely trying to avoid trouble for all concerned. Now I will make you an offer!!"

"Let us hear it!" they said.

"You may see it!" said he. "It is this!" and he drew forth the Arkenstone, and threw away the wrapping.

The Elvenking himself, whose eyes were used to things of wonder and beauty, stood up in amazement. Even Bard and Hannah gazed marveling at it in silence. It was as if a globe had been filled with moonlight and hung before them in a net woven of the glint of frosty stars.

"The Arkenstone!" said Gandalf.

"The Heart of the Mountain," said Thranduil.

"And it is also the heart of Thorin," said Bilbo. "He values it above all else. I give it to you. It will aid you in your bargaining. In exchange for its return, I believe he will give you what you were owed. There will be no need for war." Then Bilbo, not without a shudder, not without a glance of longing, handed the marvelous stone to Bard, and he held it in his hand, as though dazed.

"But how is it yours to give?" he asked at last with an effort.

"Oh, well!" said the hobbit uncomfortably. "It isn't exactly; but, well, I am willing to let it stand against all my claim, don't you know. I may be a burglar—or so they say: personally I never really felt like one—but I am an honest one, I hope, more or less."

"Why would you do this?" asked Bard. "You owe us no loyalty."

"I'm not doing it for you," answered Bilbo. "I know that Dwarves can be obstinate and pigheaded and difficult. And suspicious and secretive with the worst manners you can possibly imagine, but they are also brave and kind and loyal to a fault. I've grown very fond of them, and I would save them if I can."

The Elvenking looked at Bilbo with a new wonder. Thranduil could see why Hannah was so fond of him.

"Bilbo Baggins!" he said. "You are more worthy to wear the armor of elf-princes than many that have looked more comely in it. But I wonder if Thorin Oakenshield will see it so. I have more knowledge of Dwarves in general than you have perhaps. I advise you to remain with us, and here you shall be honored and thrice welcome."

"Thank you very much I am sure," said Bilbo with a bow. "But I don't think I ought to leave my friends like this, after all we have gone through together."

"I really think you should stay here with us," said Hannah with concern. She didn't like to think of what Thorin might do to the hobbit if the Dwarf discovered this little transaction. Gandalf was inclined to agree with her, but Bilbo was proving quite stubborn.

"I really must return," said the hobbit. "I promised to wake old Bombur at midnight! Really I must be going, and quickly."

"Yes, you should be going!" said Gandalf. "But not in the direction you think. Stay here and rest up for the rest of the night. You and Hannah must both leave on the morrow."

"What?" said Hannah and Bilbo, taken aback by the Wizard's words.

"You must get as far away from here as possible."

"I-I'm not leaving," said Bilbo.

"And neither am I," said Hannah, perplexed.

"Oh?" said the wizard.