At sea, James comes across an abandoned steamer. He and Samuel board her and find high explosives in the hold as well as leaking nitroglycerine. After much wheeler dealing, Beaumont brokers a deal to sell the yard for £205,000, the yard being William's now he is 21. Charlotte tells Letty that William won't marry her and that she is going to have a baby. James and Samuel put the leaking explosive over the side and one box explodes. A steam launch approaches and they are told the cargo is government property and is to remain secret. James tells them about the leaking nitroglycerine and threatens to leave unless a salvage deal is agreed. The captain concedes and says how much? James says: 'let's talk about it'.