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Letty tells James that she is pregnant and Charlotte gives William the same news. He is stunned and, as he does not love her, refuses to marry her - although she has confided in Samuel that she believes they will wed. Samuel takes the news badly and, when he and James, sailing to Ireland, come across a deserted steamer full of high explosives, feels sufficiently reckless to help James put the cargo overboard, though they are successful and claim the salvage rights. William turns twenty-one and inherits his mother's share of the Frazer yard, which he intends to sell.