Gandalf guides the travelers and rescues them from trolls. He is old (he was a friend of Bilbo's grandfather on the Took side) and respected for his wisdom. The map and key to the Lonely Mountain have been given to him for safekeeping by Thorin's grandfather. He also introduces Bilbo and the dwarves to useful friends like Elrond
Thorin is the leader of the dwarves, and he takes himself very seriously. He is conscious of his position as son of Thrain and grandson of Thror, King under the Mountain, and mindful of his birthright to the treasure trove guarded by Smaug.
Bilbo Baggins greets Gandalf as he passes by. Gandalf tells Bilbo that he is looking for someone to share an adventure with, but Bilbo firmly declines the invitation. The next day, Gandalf and thirteen dwarves visit Bilbo and make themselves at home.
The group is trying to make camp in the wet forest when they see a light and send Bilbo to investigate. He finds three trolls — Bert, Tom, and William —roasting mutton and complaining of having no men to eat. Bilbo, is caught trying to pick William's pocket. The trolls disagree about what to do with Bilbo and are fighting among themselves when Balin enters their camp. They capture him and put him into a sack, and then do the same to the rest of the dwarves who come looking for Bilbo.
“In a hole in the ground there lived a hobbit.”
“May the wind under your wings bear you where the sun sails and the moon walks.”