In the beginning of the chapter people at Fort Yukon are impressed by Whitefang's fighting abilities. Beauty Smith is the one most impressed and wants to buy him. Beauty travels to Grey Beavers village where he futilely tries to buy the dog. Beauty realizes how Grey Beaver won't sell the dog, so he decides to use liquor to bring him into debt. After a couple days Grey Beaver sells Whitefang to settle his debts after being made an alcoholic. Whitefang feels a type of loyalty to Grey Beaver and runs away a couple times, only to be beaten and returned to Beauty immediately. By the end of the chapter White Fang has been broken and is under Beauty.
Grey Beaver: Whitefang's previous owner and a fur trader. He is a Native American who gets ownership over Whitefang and later sells him off for drink. He recognizes that Whitefang is no longer his when he returned multiple times, and always beat him back to Beauty.
Beauty: An ugly, short, craven man who lives in Fort Yukon. He shows an interest in Whitefang and buys him after scamming Grey Beaver. He treats Whitefang badly and that causes Whitefang to run away. He is known to White Fang as the Mad God