Olaf and Osvif were still friends, though there was some deal of ill-will between the younger people. That summer Olaf had his feast half a month before winter. And Osvif was also making ready a feast, to be held at "Winter-nights", and they each asked the other to their homes, with as many men as each deemed most honourable to himself. It was Osvif's turn to go first to the feast at Olaf's, and he came to Herdholt at the time appointed. In his company were Bolli and Gudrun and the sons of Osvif. In the morning one of the women on going down the hall was talking how the ladies would be shown to their seats. And just as Gudrun had come right against the bedroom wherein Kjartan was wont to rest, and where even then he was dressing and slipping on a red kirtle of scarlet, he called out to the woman who had been speaking about the seating of the women, for no one else was quicker in giving the answer, "Hrefna shall sit in the high seat and be most honoured in all things so long as I am alive."
But before this Gudrun had always had the high seat at Herdholt and everywhere else. Gudrun heard this, and looked at Kjartan and flushed up, but said nothing. The next day Gudrun was talking to Hrefna, and said she ought to coif herself with the headdress, and show people the most costly treasure that had ever come to Iceland. Kjartan was near, but not quite close, and heard what Gudrun said, and he was quicker to answer than Hrefna. "She shall not coif herself with the headgear at this feast, for I set more store by Hrefna owning the greatest of treasures than by the guests having it to feast thereon their eyes at this time."
The feast at Olaf's was to last a week. The next day Gudrun spoke on the sly to Hrefna, and asked her to show her the headdress, and Hrefna said she would. The next day they went to the out-bower where the precious things were kept, and Hrefna opened a chest and took out the pocket of costly stuff, and took from thence the coif and showed it to Gudrun. She unfolded the coif and looked at it a while, but said no word of praise or blame. After that Hrefna put it back, and they went to their places, and after that all was joy and amusement. And the day the guests should ride away Kjartan busied himself much about matters in hand, getting change of horses for those who had come from afar, and speeding each one on his journey as he needed. Kjartan had not his sword "King's-gift" with him while he was taken up with these matters, yet was he seldom wont to let it go out of his hand. After this he went to his room where the sword had been, and found it now gone. He then went and told his father of the loss. Olaf said, "We must go about this most gently. I will get men to spy into each batch of them as they ride away," and he did so.
An the White had to ride with Osvif's company, and to keep an eye upon men turning aside, or baiting. They rode up past Lea-shaws, and past the homesteads which are called Shaws, and stopped at one of the homesteads at Shaws, and got off their horses. Thorolf, son of Osvif, went out from the homestead with a few other men. They went out of sight amongst the brushwood, whilst the others tarried at the Shaws' homestead. An followed him all the way unto Salmon-river, where it flows out of Saelingsdale, and said he would turn back there. Thorolf said it would have done no harm though he had gone nowhere at all. The night before a little snow had fallen so that footprints could be traced. An rode back to the brushwood, and followed the footprints of Thorolf to a certain ditch or bog. He groped down with his hand, and grasped the hilt of a sword. An wished to have witnesses with him to this, and rode for Thorarin in Saelingsdale Tongue, and he went with An to take up the sword. After that An brought the sword back to Kjartan. Kjartan wrapt it in a cloth, and laid it in a chest. The place was afterwards called Sword-ditch, where An and Thorarin had found the "King's-gift". This was all kept quiet. The scabbard was never found again. Kjartan always treasured the sword less hereafter than heretofore. This affair Kjartan took much to heart, and would not let the matter rest there. Olaf said, "Do not let it pain you; true, they have done a nowise pretty trick, but you have got no harm from it. We shall not let people have this to laugh at, that we make a quarrel about such a thing, these being but friends and kinsmen on the other side."
And through these reasonings of Olaf, Kjartan let matters rest in quiet. After that Olaf got ready to go to the feast at Laugar at "winter nights", and told Kjartan he must go too. Kjartan was very unwilling thereto, but promised to go at the bidding of his father. Hrefna was also to go, but she wished to leave her coif behind. "Goodwife," Thorgerd said, "whenever will you take out such a peerless keepsake if it is to lie down in chests when you go to feasts?"
Hrefna said, "Many folk say that it is not unlikely that I may come to places where I have fewer people to envy me than at Laugar."
Thorgerd said, "I have no great belief in people who let such things fly here from house to house."
And because Thorgerd urged it eagerly Hrefna took the coif, and Kjartan did not forbid it when he saw how the will of his mother went.
After that they betake themselves to the journey and came to Laugar in the evening, and had a goodly welcome there. Thorgerd and Hrefna handed out their clothes to be taken care of. But in the morning when the women should dress themselves Hrefna looked for the coif and it was gone from where she had put it away. It was looked for far and near, and could not be found. Gudrun said it was most likely the coif had been left behind at home, or that she had packed it so carelessly that it had fallen out on the way. Hrefna now told Kjartan that the coif was lost. He answered and said it was no easy matter to try to make them take care of things, and bade her now leave matters quiet; and told his father what game was up. Olaf said, "My will is still as before, that you leave alone and let pass by this trouble and I will probe this matter to the bottom in quiet; for I would do anything that you and Bolli should not fall out. Best to bind up a whole flesh, kinsman," says he.
Kjartan said, "I know well, father, that you wish the best for everybody in this affair; yet I know not whether I can put up with being thus overborne by these folk of Laugar."
The day that men were to ride away from the feast Kjartan raised his voice and said, "I call on you, Cousin Bolli, to show yourself more willing henceforth than hitherto to do to us as behoves a good man and true. I shall not set this matter forth in a whisper, for within the knowledge of many people it is that a loss has befallen here of a thing which we think has slipped into your own keep. This harvest when we gave a feast at Herdholt, my sword was taken; it came back to me, but not the scabbard. Now again there has been lost here a keepsake which men will esteem a thing of price. Come what may, I will have them both back."
Bolli answered, "What you put down to me, Kjartan, is not my fault, and I should have looked for anything else from you sooner than that you would charge me with theft."
Kjartan says, "I must think that the people who have been putting their heads together in this affair are so near to you that it ought to be in your power to make things good if you but would. You affront us far beyond necessity, and long we have kept peaceful in face of your enmity. But now it must be made known that matters will not rest as they are now."
Then Gudrun answered his speech and said, "Now you rake up a fire which it would be better should not smoke. Now, let it be granted, as you say that there be some people here who have put their heads together with a view to the coif disappearing. I can only think that they have gone and taken what was their own. Think what you like of what has become of the headdress, but I cannot say I dislike it though it should be bestowed in such a way as that Hrefna should have little chance to improve her apparel with it henceforth."
After that they parted heavy of heart, and the Herdholtings rode home. That was the end of the feasts, yet everything was to all appearances quiet. Nothing was ever heard of the headdress. But many people held the truth to be that Thorolf had burnt it in fire by the order of Gudrun, his sister. Early that winter Asgeir Eiderdrake died. His sons inherited his estate and chattels.
