Astounded by the still-lingering destruction of the forest Cutter & Skywise are captured by Picknose & Old Maggoty. The stunned wolves are left to sleep off the herbal sleep remedy that lays low the elves.
When they awaken they are being held slave captives of the 3 trolls who tell them what happened to the Troll tribe. Picknose also discloses the secret of Cutter's sword New Moon and the tale of Two-Edge's treasure. Then the elves escape. With New Moon.