Sergeant-Major Morris is telling the Whites what the monkey's paw is all about. Also Sergeant-Major Morris tells the Whites what happened to the first person that wished with the paw and what happened to him when he used the paw.
One of the workers from Maw and Meggins is breaking the news to Mr. White and Mrs. White that Herbert got caught in the machinery and died. The worker is also telling Mr. White and Mrs. White that they will get a two hundred pound compensation for Herbert's death.
Mrs. White is telling Mr. White that he should wish Herbert back to life with the paw since they still have two wishes left to be granted. But Mr. White is reluctant because he doesn't want to see the sight of Herbert mutilated and doesn't know how Herbert is going to act.