Dagny begins the search for the motor's inventor, interviewing the town officials in Rome, Wisconsin where the Twentieth Century Motor Company was located. But when she contacts her assistant Eddie, he warns her that the politicians are threatening to pass laws that would kill industrial production in Colorado. The Union of Locomotive Engineers demands that the maximum speed for all trains on the Rio Norte Line be reduced to 60 miles per hour, and the Union of Railway Conductors and Brakemen demands that the length of all trains on the line be reduced to 60 cars. Likewise, the states of Wyoming, New Mexico, Utah, and Arizona demand that no more trains run in Colorado than in any of these neighboring states. A group headed by Orren Boyle demands the passage of a Preservation of Livelihood Law, which would limit the production of Rearden Metal, and other businessmen demand passage of a Fair Share Law, which would give an equal amount of Rearden Metal to any customer who wants it.
In the meantime, Rearden has lost his supply of iron ore. Paul Larkin, in compliance with the terms of the crooked deal that James Taggart arranged, sold the ore to Orren Boyle and shipped it via Taggart's railroad rather than the cheaper lake ore boats.
Dagny's search for the inventor of the motor leads her to the widow of William Hastings, former chief engineer at the Twentieth Century Motor Company. Mrs. Hastings tells Dagny that one of her husband's young assistants was the motor's inventor. She doesn't know his name, but she's met a man who was a mutual friend of her husband and the inventor. Mrs. Hastings directs Dagny to a remote diner in the mountains of Wyoming, and Dagny goes to visit. The man working as a cook knows the inventor, but he refuses to give Dagny any information. Dagny is stunned to learn that the cook is Hugh Akston, the last great philosopher, who retired from his profession many years ago. When she arrives back in Cheyenne, Dagny learns that the socialist rulers have passed a series of directives in accordance with the demands made by the unions, Colorado's neighboring states, and mooching businessmen. A special tax has been levied on Colorado so it can assist its financially needier neighbors. Dagny is terrified at how the defiant Ellis Wyatt will respond. She races to Wyatt's Junction but finds that she's too late. Wyatt has set fire to his wells and disappeared.
