Frank and his guide arrive at the jail and gain admittance. They are guided to a cell and let in. Frank believes he might find there Diana Vernon, but instead finds Owen.

When Owen arrived to meet with MacVittie and MacFinn, he tells them of what Rashleigh has done in compromising the integrity of Osbaldistone and Tresham. They go from being sympathetic to outraged. They demand some security for the money they have invested, but Owen is able to give them nothing. Since Owen has a small share in the firm, he becomes liable for the debt and is imprisoned.

When Owen finishes relating this account to Frank, a woman comes to the door of the cell and lets in Frank’s guide. He is unable to escape from the jail in which it is dangerous for him to be, so he asks for Frank’s pistols to protect himself. He then decides he can do this without the pistols and prepares for whoever is coming to Owen’s cell.

Nicol Jarvie, who is a local magistrate, enters the cell. He ignores, for the moment, both Frank and his guide, and addresses Owen. He asks Owen for the ledger that he is carrying. On examining it, Jarvie suggests that Owen can be released if someone will be his security. Jarvie himself offers to stand bail, provided Owen promises not to leave the country. Owen says he cannot expect anyone to be the security, but he promises to remain in the vicinity, at which point Jarvie promises him that he will be released by breakfast.