James has sent Baines to bring back a ship, the "Amarillos". The captain, an old enemy of Baines, is dying. His wife, Catherine, pleads with Baines to take him back to Liverpool to die. At home, James comments that Charlotte is putting on weight. William learns that Beaumont has sold the yard and has given an acre of land to William as a bonus and tells him that he is to stand for city councillor. James learns about Beaumont's ambitions and Samuel wants James to sponsor Daniel to stand against him.