Reaching the village of Bywater, the hobbits are confronted by a group of ruffians who are quickly scared away by the sword-wielding Pippin, Merry, and Sam, after their leader insults Frodo.
The hobbits learn that the true "Chief" is not Lotho Sackville-Baggins as expected, but rather the wizard Saruman, now known as Sharkey, who has taken up residence at Frodo's former home, Bag End, along with his servant Wormtongue.