Lucus learns how Sir Randolph came to own the mill and is disappointed when he discovers that his new friend is a girl. Meanwhile there is trouble at the mill when the workers learn that their wages are to be halved.
Lucas is taken to the mill to learn the business of carpet making. He is later told by his uncle that as from the next day he will have a friend to keep him company.
Lucas witnesses an attack at the mill but cannot get anyone to believe him. Meanwhile Sir Randolph hatches a plan to prevent the bailiffs from taking Midnight Court from him.