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Levin and Oblonsky meet up with Veslovsky at a peasant's hut. Veslovsky is in a merry mood.
None of them feels like going to sleep, so they tell stories.
This evolves into a discussion of luxury and privilege. Levin argues against money dishonestly obtained (i.e. money obtained without having to work for it), while Oblonsky says he's being too harsh.
Levin thinks that it's unfair that a peasant on his land makes fifty rubles, while Levin makes five thousand, but Oblonsky points out that Levin isn't about to give his estate away to the peasant.
This reflects the hostility that has lately characterized the relationship between the two brothers-in-law.
Levin wants to go to sleep in order to ensure an early start in the morning, but Oblonsky and Veslovsky go carousing. Veslovsky in particular has found a pretty maid with whom he wants to spend the night.