The party continued weighing their options in dealing with the offer from Ship Suljack in the Cutlass tavern. In an effort to win over the crowd and perhaps learn more about the opposing ships in the city, the group bought a round for the entire tavern, and Elan, the party bard, began performing songs. The group learned more about the various Ships, when eventually a gnome and an entourage of city guards entered the establishment. The gnome announced their search for those that interrupted the proceedings of the Prisoner's Carnival. He spotted Alfun, and interogatted the crowd about who he had entered the bar with. The crowd, clearly intimidated by his and the guard's precense, revealed the party members.
The gnome had the party taken captive and brought to Ship Kurth's island fortress where the were briefly imprisoned before being taken to Beniago Kurth, the High Captain of Ship Kurth.
Kurth recognized the party's talents in breaking a man out of the Carnival, and offered them work in return for power and wealth. He told the party they could work for him, or agree to leave the city. At this point he told the party they could freely explore the compound to "see what Ship Kurth has to offer." He returned their gear and weapons, and the party was faced with what to do.