In response to devastating economic conditions, the government passes the radical Directive 10-289, which requires that all workers stay at their current jobs, all businesses remain open, and all patents and inventions be voluntarily turned over to the government. When she hears the news, Dagny resigns from the railroad. Rearden doesn't resign from Rearden Steel, however, because he has two weeks to sign the certificate turning his metal over to the government, and he wants to be there to refuse when the time is up. Dr. Floyd Ferris of the State Science Institute comes to Rearden and says that the government has evidence of his affair with Dagny Taggart and will make it public — dragging Dagny's name through the gutter — if he refuses to sign over his metal. Rearden now knows that his desire for Dagny is the highest virtue he possesses and is free of all guilt regarding it, but he's a man who pays his own way. He knows that he should have divorced Lillian long ago and openly declared his love for Dagny. His guilt and error gave his enemies this weapon. He must pay for his own error and not allow Dagny to suffer, so he signs.
Dagny has retreated to a hunting lodge in the mountains that she inherited from her father. She's trying to decide what to do with the rest of her life when word reaches her that a train wreck of enormous proportions has destroyed the famed Taggart Tunnel through the heart of the Rockies, making all transcontinental traffic impossible on the main track. She rushes back to New York to resume her duties, and she reroutes all transcontinental traffic. She receives a letter from Quentin Daniels telling her that, because of Directive 10-289, he's quitting. Dagny plans to go west to inspect the track and to talk to Daniels.
