Clifford, who becomes fatigued easily, is now in the habit of retiring early, which is fortunate for Phoebe, who thus has a good deal of time to herself. Interestingly, she is changing; her eyes are now larger, darker, and deeper, and she seems to be less girlish. In the summer house, she is occasionally thrown into the company of Holgrave, who tells her about his varied career as a schoolmaster, salesman, country editor, peddler, sailor, communal farmer, hypnotist, and now as a photographer. He has retained his good conscience always, but he seems to obey strange rules. He is calm, cool, and more intellectual than emotional. He asks Phoebe about Clifford and seems surprised that she does not wish to try fathoming the man's nature. Holgrave rants about the dead weight of the past, says that houses should last only twenty years, and he mentions Maule's curse, which he says is very real. He fancies himself to be quite a thinker, but one might well wonder whether he himself will ever amount to anything. He tells Phoebe that he is a published author, and he begins to read to her a story that he has written about Alice Pyncheon.
Holgrave's story relates that thirty-seven years after the house was built, the owner, Gervayse Pyncheon, grandson of the old Colonel, summoned the carpenter Matthew Maule, the only son of Thomas Maule, who built the Pyncheon mansion, to ask him about the missing documents, the deeds to "the lands eastward." Matthew took offense at Gervayse's European manners, and so, for revenge against the Pyncheons in general, he hypnotized the proud, beautiful, and pure Alice Pyncheon. Immediately thereafter, Alice described her vision of the old wizard Maule and his carpenter son as they tried to prevent blood-soaked old Colonel Pyncheon from releasing a parchment document to his heirs. Later, Alice, still a mesmerized "slave," kissed Matthew's bride, then caught cold, and died. Her sudden death wounded the carpenter's grandson; he gnashed his teeth—he had sought only to humble Alice, not destroy her.
Phoebe is half-hypnotized by the exciting story of Alice, and Holgrave admirably resists a terrible temptation to say something to Phoebe to make her his slave forever. In the darkening garden, the two young people talk of Holgrave's unusual happiness here, and of Phoebe's feelings of maturity because of her help to Clifford and Hepzibab; she has given them some of her "sunshine" and the presence of her youth, a quality which swiftly passes. Phoebe explains that she must go home again, for a few days, but she says that she will be back soon. Holgrave says that he enjoys watching the drama of two centuries seemingly drawing to a close. Phoebe calls him heartless, but he explains that he has only a mystical feeling, that he really knows nothing of consequence concerning the old Pyncheon house. Two mornings later, Phoebe takes a train bound for home. Hepzibah notes Phoebe's growing sadness. Clifford, however, calls her "a bud now blooming"; Uncle Venner urges her to return quickly, since otherwise he may be at the workhouse, and he calls her an angel who is essential to the well-being of her old cousins.
