- Fulgor goes to see Pedro Páramo at his house.
- When he knocks on the door he notices two black bows, one old and one new, hanging above it, which means that there have been two deaths in the house.
- Fulgor has only seen Pedro once before, when Pedro was a little baby, and he wants to teach him a lesson now that they're both men.
- It turns out that Fulgor used to work for Pedro's dad, Lucas Páramo, and it seems that that's why there's a black ribbon at the door.
- Pedro has inherited his father's ranch and property, so Fulgor, the ranch administrator, is filling him in on the economic situation, which isn't good.
- The Páramo's are having their own little credit crunch, and owe money to all the families around the Media Luna.
- Pedro asks Fulgor who they owe the most to, and finds out it's the Preciado women—as in Juan Preciado, our narrator? Hmm.
- He tells Fulgor that tomorrow he should go and ask if the younger sister, Dolores Preciado, will marry Pedro.
- It's a sneaky way to get rid of his debt, and also explains how the original narrator, Juan, the one whose mom is named Dolores and whose dad is named Pedro Páramo, comes to be.
- The two men also talk about Toribio Aldrete, the man we already know is going to end up hanged at Eduviges' house. He has been putting up fences to establish the property line between his and Pedro's land.
- Pedro says he'll take care of that situation.