The days pass slowly, and the dwarves search all over the mountain for the Arkenstone. Thorin tells them "'that stone of all the treasure I name unto myself, and I will be avenged on anyone who finds it and withholds it.'" Chapter 16, pg. 266. Bilbo is frightened, as he has the stone hidden in a bundle of clothing he uses for a pillow. He does not, however, give up the stone. Roac returns, and tells them that Dain is but two days away. He warns them that snow is coming, and tells them that their plan is bad. Thorin thinks that snow is good, because elves and men are more susceptible to cold than dwarves. Bilbo takes the stone out that night and sits near the watch with Bombur. Bombur is complaining about having the first night watch and Bilbo offers to take his watch for him. Bombur is very grateful as he accepts the offer. After the fat dwarf leaves, Bilbo puts on his ring and descends into the camps below. As he gets nearer, he sneezes and a guard hears this. Bilbo shows himself and is led to the Elvenking and Bard.
He is offended, because they think that he is a servant to the dwarves. Bilbo tells them that he thinks the whole affair is a waste of everyone's time. He shows them Thorin's letter from the mantlepiece in Hobbiton, and tells them that they can have the Arkenstone as his share to bargain with. Bard is willing to let Thorin starve. Bilbo tells them that Dain is coming and that it is going to snow. Bard interprets this as a threat. They ask him where he got the Arkenstone, and he says that he stole it. The Elvenking is impressed with Bilbo and he asks him to stay with them. Bilbo does not want to because he thinks he should stand with his friends after such a long journey. He leaves, and is saluted by Bard. He walks outside and moves past an old man wrapped in rags who tells him he did a good job. Bilbo turns and Gandalf shows himself. Gandalf warns the hobbit that there is great trouble brewing and that he should leave. Bilbo returns to the mountain and wakes Bombur to finish the watch. He goes to sleep.
