So of course the neighborhood goes crazy. The local bar is doing a brisk business, since every single person needs a drink when they hear the crazy news about Krook bursting into flames.
The bar owner gives Guppy and Jobling drinks on the house to keep them at the bar, since they're attracting business by telling the story over and over again.
Snagsby comes to check out whatever is going on. He is so confused and guilty feeling that he wants to turn himself in to the police – for no reason. He's an odd duck.
Mrs. Snagsby, as always, follows him. She confronts him without actually telling him what she is upset about and takes him home.
Guppy takes Jobling aside and tells him that they need to get their stories straight for the upcoming inquest. Basically they can tell the whole thing the way it happened and just leave out the detail about the letters.
Then Guppy asks whether Jobling wants to stay in his apartment and try to dig around in Krook's piles of documents to see if there is anything valuable there.
Jobling is going a little nuts about everything and is upset at even the thought of staying at that horrible place. They argue, but everything is fine, then the Smallweeds pull up in a carriage.
Old Smallweed is taken to the neighborhood bar, and after a good amount of yelling at the rambling, senile Mrs. Smallweed, he announces that Krook was...her brother!
Since Krook had no other relatives, and there is most likely no will, the Smallweeds inherit the whole of his property. He is here to claim it and lock it up.
Tulkinghorn is on his way to serve as Smallweed's lawyer in this inheritance deal.
Guppy has a giant case of d'oh, complete with forehead slapping.
The neighborhood is suddenly overrun by journalists, doctors, scientists, and other experts, all of whom are trying to figure out how spontaneous combustion could possibly occur in a human being.
All the new hustle and bustle is yet again good for business at the local bar. The neighbors are also relieved to hear that a full-size coffin has been ordered even though there isn't much of Krook's body actually left to put in it.
The inquest is held and spontaneous combustion is determined to be the cause of death.
Meanwhile, Guppy goes to see Lady Dedlock.
She is super-cold and overbearing with him. He fesses up that he has no letters and that maybe they were destroyed with Krook. Or maybe not.
She says, OK, fine, whatever, and tells him to leave.
But just as he is leaving, into the room walks... Tulkinghorn! Who of course has free entry into the Dedlock house.
Lady Dedlock makes like she doesn't care, and Guppy sort of shuffles out with a small greeting. But Tulkinghorn immediately recognizes him, sees a strange scared/guilty expression for a moment on Lady Dedlock's face, and tries to put the pieces together.