Chapter 17

Bard comes to Thorin and produces the Arkenstone with the hope of negotiating for peace to prevail between them. Thorin becomes furious, and Bilbo explains how it came to be possessed by Bard. Thorin promises Bard to give him one-fourteenth of the hoard in exchange for the stone. He labels Bilbo as a traitor, who then leaves with Gandalf, the elves, and the men.

The next day, Dain arrives and challenges Bard. The dwarves are ready to wage a war when Gandalf appears and informs them that they might soon be attacked by the Wargs and Goblins. The Battle of Five Armies begins, with the elves, men, and dwarves opposing the Wargs and Goblins. Bilbo is struck by a stone and passes out when eagles appear.

The novel moves toward conclusion as the battle begins. Thorin is overcome with greed and is willing to risk the lives of the group for jewels and gold. Gandalf appears in time to prevent the war. The battle is clearly one between good and evil, with the two opposing sides clearly defined.