One night, he and Kate get lost walking home. They overhear a couple arguing. Kate identifies the man as Mr. Mantalini.
Mrs. Mantalini had paid for him to get out of prison, and he still breaks her heart by fooling around. He promises not to do it again.
Nicholas interrupts to ask for directions. When Mrs. Mantalini conks her husband on the head with a clothes basket, Nicholas and Kate run away.
Nicholas remembers his trip with Squeers as he returns to visit the Browdies.
Squeers has been sentenced to seven years for possession of a stolen will, and he still has yet to be sentenced for conspiracy.
Nicholas tells the Browdies all that has happened.
John realizes that the Squeers will have it tough now that Mr. Squeers has been sent to prison. Some of the parents have already taken their children away. He expects the other children will rebel when they hear that Squeers won’t return. Fearing this, he decides to go there. When he arrives, he finds that the rebellion is already occurring.
Browdie stops the students from attacking Mrs. Squeers, young Wackford, and Fanny. He encourages the boys to run away, but he tells them to stop hurting the women. The students vacate the premises.
Fanny accuses John of encouraging the boys to leave. John says he is glad that Squeers is in prison. He tells her not to be so proud as to shun her friends, for they can help her.
The Browdies give food and money to the boys. Some of the children don’t adapt as well. The school was the only home they knew. They miss the other children. Some were taken back, but eventually Dothesboys Hall goes out of business.