- The cellar is big, dirty, and smoky—but hey, at least it's warm.
- There are ton of kids milling about, presumably getting into trouble; Alex can even hear a "loud fight" (4.1) happening somewhere.
- Peter introduces Alex to a kid named Boris. Peter makes Boris give Alex some bread, which Boris isn't happy about—everyone normally has to wait for dinner to eat.
- Peter then introduces Alex to a bunch of other new faces. There's Kostia (a.k.a. the Dancer); Ivan, who's as goofy as can be; Leon; and then there's young Miska, the small boy Alex saved in the square.
- In fact, Peter chews Miska out for making that final cabbage snatch, arguing that he's too young to be involved in thievery. As punishment, Miska won't be getting any dinner tonight.
- Alex dozes off, but is awoken by Miska bringing him some smelly (in a bad way) cabbage soup. At the moment, however, it tastes as good as a bowl of chocolate.
- Alex notices Miska gazing longingly at his soup and offers the boy a few sips. Before he's able to get the soup to the kid, though, Peter knocks the bowl out of Alex's hand. Dude runs a tight ship.
- That's one of the rules here, explains Peter. And if Alex is going to be staying here from now on…
- Wait, what? Alex thanks them for their help, but admits that he can't wait to leave this crazy place.
- As the night wears on, Alex approaches Miska, who's reading a "tattered red-covered book" (4.39). The only problem is that Miska (and his friends) can't read.
- Alex decides to read the book—a compilation of Russian folklore—aloud. Before long, oodles of boys have crowded around Alex, enraptured by the story. Everyone falls asleep.