They all drift off to sleep. Bilbo dreams about the cave floor cracking. He wakes and sees an opening in the wall of the cave. The last of the ponies is being pulled into it. Bilbo cries out and Gandalf disappears in a flash.
Goblins rush in and grab everyone.
They carry them deep into the caverns of the mountain. After a long time they come into a large cavern lit by a fire in the middle. All of their baggage and the ponies are piled in the corner. In the center sits a goblin with massive head. He is the Great Goblin .