The two criminals, Billy and Cutwater, grab hold of Jemmy and Prince Horace and take a closer look, noticing that “they [are] trimmed up in fancy rags” (12). Billy brags about being a famous criminal, but the prince is preoccupied with them not treating him with respect. Jemmy tries to tell the prince to keep quiet, but the latter proudly introduces himself as Prince Horace. Fortunately, the criminals seem to think that the prince is joking, and Jemmy lies that the other boy’s father is “nothing but a rat-catcher” (14) in order to make them seem lower-class. However, when Billy and Cutwater examine the boys’ horse and saddle, they notice that the saddle bears the royal insignia. They begin to realize that they could obtain a great fortune by ransoming a prince.

Billy and Cutwater take Jemmy and Prince Horace to their hiding place, “a rickety timbered hut with a moldy thatched roof” (15). They find that the prince packed tasty and luxurious foods, as well as elegant plates and cutlery. They also find the prince’s gold crown and are delighted to realize how much treasure they’ve gotten their hands on.