Hank Rearden dresses for his wife’s party, tormented by business worries and by his family’s contempt for him. He reads about the recently proposed bill for equal opportunities that would forbid any one person or corporation from holding more than one business interest, and he assumes that it will not come to pass.

Many of the guests at Lilian Rearden’s party are academics and so-called intellectuals who discuss their fields and their support for the bill. One guest, Betram Scudder, wrote an insulting article criticizing Hank Rearden that Philip Rearden praises. Francisco d’Anconia mockingly debates the speakers. He tells Jim Taggart that his worthless San Sebastian mines should be considered the ideal in a society that does not value productivity and pontificates on the moral value of money. He introduces himself to Rearden, who enjoys their conversation despite himself.

Dagny Taggart overhears a group of elderly people discussing their nameless fear of the dark. One informs her that John Galt was a man who discovered the city of Atlantis, which Francisco confirms to be true. Dagny trades Lilian a diamond bracelet for the bracelet of Rearden Metal that Lilian has been wearing and disparaging all night. Rearden had hitherto been distant toward Dagny, but at this he appears furious at her.