The next day, Nick's Uncle Hank telephones him about the disappearance of his boat. Nick and Elizabeth sail out and find the vessel and the three corpses. Elizabeth goes into the hold and finds Spooner alive in a freezer. They return to the island where Mayor Tom Malone - father Malone's father - suspects Spooner of the murders. In the morgue, Sean's corpse briefly rises up and accosts Elizabeth. At the library, Elizabeth researches the scales symbol seen on the watch's hallmark. It represented an old trading colony north of Antonio Island, which generated substantial wealth through intercontinental trade but was abandoned due to a leprosy outbreak. At the docks, Elizabeth finds the buried journal of Patrick Malone from 1871. She and Nick learn the story of the "Elizabeth Dane" and realize the founders built the town with the fortune they had stolen from the ship, but kept this secret from their families and the townsfolk.