Chapter 13
Chapter 13 — "White Blackmail"
TL;DR: Lillian Rearden discovers that Hank is sleeping with another woman and chooses to do nothing with the knowledge except keep him hostage to it, while across the country Dr. Floyd Ferris arrives at Rearden's office with proof of an illegal sale and uses it to extort his signature for the State.

Summary: Lillian forces a private confrontation. She knows Hank has a mistress; she does not yet know who. Hank, weary, admits the affair without apology. He expects her to demand a divorce; she instead refuses one — preferring, with quiet sadism, to keep him chained to a marriage he has openly betrayed, calling this her "white blackmail." That same week Dr. Floyd Ferris arrives unannounced at Rearden's office. He produces evidence of an illegal sale of Rearden Metal — Rearden has been selling extra metal off the books to Ken Danagger, the Pennsylvania coal magnate, in defiance of a federal allocation directive. Ferris's price is a "voluntary" Gift Certificate handing the Rearden Metal patents over to the State for the duration of the emergency. Rearden, this time, refuses outright; he will go to trial. Ferris, civilized and unsurprised, departs. Subplot: Dagny visits Rearden's office and learns of the illegal sale; visits Danagger to warn him; in Danagger's outer office she is asked to wait while another visitor finishes — a man whose presence she senses but does not see — and when she is finally admitted, Danagger calmly tells her he is leaving, refuses every plea to stay, and disappears that night.
Key scenes:
- Lillian and Hank in the cold drawing room — fire low, two figures in evening dress, the icy admission and her refusal to leave
- Ferris in Rearden's office with a manila folder — the proposal of the Gift Certificate, civilized smiling pressure across a desk of polished steel
- Rearden's refusal; Ferris standing, bowing, leaving without anger
- Dagny's anteroom wait at the Danagger Coal headquarters — door closed, voices murmuring within, a smell of cigarette smoke
- The empty visitor's chair across from Danagger's desk, still warm — Danagger relaxed, kind, and unmovable
Characters present: Hank Rearden, Lillian Rearden, Dr. Floyd Ferris, Dagny Taggart, Ken Danagger, the off-page visitor (later revealed as John Galt — keep unnamed)
Locations / settings:
- Rearden mansion drawing room — chandelier, dying fire, two armchairs at distance from each other
- Rearden Steel office — wall of glass over the foundry floor, a polished steel desk, single ashtray, bare interior
- Danagger Coal headquarters in Pennsylvania — anteroom with a long bench, frosted-glass office door
Visual motifs: two evening-dressed figures across a chilled drawing room, a manila folder sliding across steel, a still-warm empty chair beside an unfinished cigarette in a glass ashtray, a closed frosted-glass door with two silhouettes behind it
Emotional tone: quietly cruel, then bureaucratically menacing, then heart-sickening with the loss of Danagger
Confidence: high — all three threads are well documented in study guides; the unseen visitor in Danagger's office is a famous Galt-trail beat.