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The Baudelaire orphans move into the Lucky Smells Lumbermill, which has horrible living conditions.
The orphans are forced to do work that is unfit and too hard for children.
Dr. Orwell hypnotizes the twelve-year-old orphan, Klaus.
While Klaus was hypnotized, he broke the leg of his co-worker, Phil.
When he was hypnotized, Klaus almost pushed Charles, co-owner of Lucky Smells Lumbermill along with the orphan's caretaker, into the saw used to cut the logs.
The orphan's caretaker "Sir" and Mr. Poe walk into the room, causing Dr. Orwell to step back in surprise, into the path of the saw, and die.
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