The narrative begins in a "crowded and terribly dirty" prison cell, where Miles Hendon and the young Edward find themselves stripped of their dignity. For Miles, the initial experience was defined by "rage and grief," primarily fixated on his brother Hugh’s betrayal. The conditions are brutal; prisoners are "handcuffed to a wall" or "chained to beds," suffering from "poor food" and constant mockery from guards who label Miles a "fake." This environment serves as a crucible for their resilience, stripping away the pretenses of their former lives.
A pivotal moment occurs when an "old servant from Hendon Hall," George, is thrown into the cell. Initially feigning ignorance to protect Miles from the guards, George later reveals the tragic history of the Hendon family. He recounts how Hugh manipulated the family fortune after Sir Richard’s decline, which was precipitated by "the stress of Arthur's death and Miles' disappearance."
George’s testimony exposes the depth of Hugh’s villainy: Hugh had forged a "letter announcing Miles's death" to force a marriage with Edith. Edith, trapped by a lack of "means of support" and the threat of total financial ruin, was forced into a marriage with a man "not well liked" and widely feared. This revelation confirms that Miles’s "homecoming had been such a surprising and disappointing experience," as he realizes his brother has usurped his life and property through calculated deceit.
Amidst the grim atmosphere, Edward’s character undergoes a significant shift. While Miles is consumed by the loss of his home and the realization that "everyone whom he loved was gone," Edward is galvanized by the news of the impending coronation. When George mentions rumors that the "future king is mad" and that a new monarch will be crowned, Edward is forced to confront the terrifying reality that the "little peasant boy"—Tom Canty—is likely occupying his throne.
This realization brings about a profound psychological change. While Miles feels he has "lost his energy to fight," Edward gains "a new strength." His determination to reach London is no longer just a quest for survival, but a desperate mission to reclaim his birthright before the coronation takes place.
The chapter concludes with a stark contrast between the two protagonists. Miles, paralyzed by the knowledge that "Hugh would simply have him jailed as a fraud again," is adrift in sorrow. Conversely, Edward marches toward London with renewed vigor. Their arrival in the city coincides with the somber funeral of King Henry and the looming, illegitimate coronation of the imposter. The stage is set for a dramatic confrontation, as the true king prepares to challenge the "strange time" that has allowed a peasant to usurp the crown while the rightful heir languished in the filth of a dungeon.