- Mary, Pippin, Frodo, and Sam are having a wonderful time drinking and singing in a pub. Sam is smitten by Rosie, but too shy to make a move.
- But when Frodo gets home, he finds Bag End completely torn apart.
- Luckily it was just Gandalf searching for the ring.
- Frodo shows it to him and Gandalf casts it into the fire. The ring remains cool and now bears the words, in the Black Speech of Mordor: "One Ring to rule them all, One Ring to find them, / One Ring to bring them all and in the darkness bind them."
- Gandalf confirms this is the One Ring. He tells Frodo of its power, and that the dark army knows through Gollum where the ring is.
- Sam also knows this because he was totally eavesdropping (sorry, he was pruning the hedges and just happened to hear).
- Gandalf has Sam accompany Frodo on his journey away from the Shire and toward the town of Bree, where Gandalf will meet them at the Prancing Pony.