In chapter seven, rumors circulate that Snowball has been sneaking onto the farm at night and causing mischief. Hysteria quickly spreads throughout the farm, and the animals begin blaming every minor incident on Snowball. Napoleon decrees that there should be a full investigation into Snowball's activities, and the ferocious dogs carefully inspect the entire farm. Napoleon then announces that Snowball has certainly been trespassing onto the farm, which heightens the tension and fear among the animals.
Shortly after Napoleon's "investigation," Squealer tells the animals that Snowball sold himself to Frederick of Pinchfield Farm and is currently planning to attack the farm. He also mentions that they discovered documents that reveal Snowball was in a league with Mr. Jones the entire time and plotted to destroy Animal Farm. However, the animals are reluctant to believe Squealer's story and even Boxer says,
I do not believe that ... Snowball fought bravely at the Battle of the Cowshed. I saw him myself. Did we not give him "Animal Hero, first Class," immediately afterwards? (26)
Squealer responds by appealing to the secret documents, which reveal that Snowball was attempting to "lure" them into doom. Squealer also mentions that Snowball's wounds were part of the arrangement with Jones to fool the animals and rewrites history by claiming that Napoleon sank his teeth into Mr. Jones's leg. After vividly describing the battle scene, Boxer remains skeptical and Squealer is forced to appeal to Napoleon's authority by saying,
Our Leader, Comrade Napoleon ... has stated categorically—categorically, comrade—that Snowball was Jones's agent from the very beginning—yes, and from long before the Rebellion was ever thought of. (26)
Finally, Boxer accepts Squealer's explanation, and Squealer warns everyone that Snowball's secret agents are lurking among them at the moment.