The "Nautilus" arrives in Venice just as the bombs detonate, causing the city to start collapsing. Sawyer uses Nemo's automobile to stop the destruction, while Quatermain confronts the Fantom, who is unmasked as M. Dorian, the traitor, murders Nemo's first mate Ishmael and steals the "Nautilus" exploration pod. M and Dorian leave a phonograph recording for the League declaring that their true goal is to ignite the world war, and that Dorian has been collecting physical elements of the League to create a heavily armed version of the "Nautilus", invisible spies, vampire assassins, and Hyde-like soldiers, and to sell the superhuman formulas off to the highest bidder. The "Nautilus" is damaged by bombs hidden on board, but Hyde saves it by draining the flooded engine rooms. Skinner secretly messages the League, informing them that he has snuck aboard the exploration pod and telling them to follow his heading.