There are many paths in the mountains, but Gandalf leads them safely. Bilbo looks back west to his home and shivers because he is so far away. Occasionally small boulders come rolling down from the slope above. It is cold and there might be snow soon. Bilbo thinks of the summer spreading over his home and feels more gloomy. Gandalf is worried as unexpected storms whip up and drench them. Bilbo shrinks from the bolts of lightning and Thorin complains about the conditions. Gandalf tells him he can lead if he thinks he can do a better job. They send Fili and Kili ahead to find some shelter. They come back with news of a dry cave. Gandalf asks them if they checked it out thoroughly but everyone is too weary to worry about it. They all go into the cave and Gandalf lights his staff. The cave is a good size with room for everyone including the ponies. They all drift off to sleep.
Bilbo dreams about the cave floor cracking. He wakes and sees an opening in the wall of the cave. The last of the ponies is being pulled into it. Bilbo cries out and Gandalf disappears in a flash. Goblins rush in and grab everyone. They carry them deep into the caverns of the mountain. After a long time they come into a large cavern lit by a fire in the middle.
All of their baggage and the ponies are piled in the corner. In the center sits a goblin with massive head. He is the Great Goblin. The Great Goblin asks what they were doing in the goblins' entrance, thinking they were planning something devious. Thorin introduces himself and tries to tell the Great Goblin that he meant no harm. The Great Goblin has heard his family name and he doesn't believe him. Thorin claims that they are traveling to visit relatives and a goblin says that he is lying, claiming that Gandalf killed Goblins in the cave. Then, the goblin gives Thorin's sword to the Great Goblin. It had killed a great many goblins. The Great Goblin freaks out: "'Smash them! Beat them! Bite them! Gnash them! Take them away to the dark holes full of snakes and never let them see the light again!'" Chapter 4, pg. 64. Suddenly, the fire goes out and sparks appear everywhere, burning holes through some of the goblins. A sword flashes and strikes down the Great Goblin. A voice tells the dwarves to follow. They stumble along into a dark tunnel. Gandalf lights his staff after a little while. He gives Thorin back his sword and counts them to make sure all are present. They have neither transportation nor food. When they hear goblin sounds in the tunnel behind them, they begin to run. Dori carries Bilbo because he can't keep up. Gandalf and Thorin draw their swords to fight off some of the goblins. One of the beasts grabs Dori and Bilbo falls, hits his head hard, and is knocked out.
