As everyone settles down in the aftermath of things, Willbury tells Arthur to take Grandfather to the captain's cabin so he can rest.
Arthur says he's worried about where they'll live now, and Willbury says not to sweat it.
Grandfather tells Arthur all the stories of his and Herbert's youth together, which helps improve Herbert's memory, with the added bonus of being pretty darn interesting for Arthur, too.
In the evening, Kipper summons them all to a meeting that Willbury has called to order.
Willbury announces that he has rented the rooms above his shop to Grandfather and Arthur, and they've spent all day preparing the place for them to inhabit. Willbury will take care of the rent until their claim against Snatcher in court comes through.
Marjorie has a suggestion for how to pump the water out of the Underworld so that the underlings can return home, too. No suggestions for how to resize everyone, though.
Willbury's home has been cleaned and improved, and everyone's happy with it. Arthur gets his own room, and in it is a tiny model of the pirate ship that Kipper had made for him. Aw.
His doll was found and brought to the room, too, so that he can stay in touch with Grandfather whenever he needs to. Arthur thinks they'll be happy there.