Two days later the animals were called together for a special meeting in the barn. They were struck dumb with surprise when Napoleon announced that he had sold the pile of timber to Frederick. Tomorrow Frederick's wagons would arrive and begin carting it away. Throughout the whole period of his seeming friendship with Pilkington, Napoleon had really been in secret agreement with Frederick.

All relations with Foxwood had been broken off; insulting messages had been sent to Pilkington. The pigeons had been told to avoid Pinchfield Farm and to alter their slogan from "Death to Frederick" to "Death to Pilkington." At the same time Napoleon assured the animals that the stories of an impending attack on Animal Farm were completely untrue, and that the tales about Frederick's cruelty to his own animals had been greatly exaggerated. All these rumours had probably originated with Snowball and his agents. It now appeared that Snowball was not, after all, hiding on Pinchfield Farm, and in fact had never been there in his life: he was living–in considerable luxury, so it was said–at Foxwood, and had in reality been a pensioner of Pilkington for years past.
The pigs were in ecstasies over Napoleon's cunning. By seeming to be friendly with Pilkington he had forced Frederick to raise his price by twelve pounds. But the superior quality of Napoleon's mind, said Squealer, was shown in the fact that he trusted nobody, not even Frederick. Frederick had wanted to pay for the timber with something called a cheque, which, it seemed, was a piece of paper with a promise to pay written upon it. But Napoleon was too clever for him. He had demanded payment in real five-pound notes, which were to be handed over before the timber was removed. Already Frederick had paid up; and the sum he had paid was just enough to buy the machinery for the windmill.