Catherine and Julia discover Morgan in the cottage, standing before Carrie who is in a trance. When they awaken her, Carrie announces that she knows who Morgan is, James Forsythe. Julia accuses James Forsythe of being the man who put the curse on the Collins family; he claims that he was not responsible. Catherine has another fainting spell. Bramwell visits Catherine, Julia catches them together. Bramwell and Daphne argue about his going to see Catherine. Morgan (James) finds the skeleton of Sarah Forsythe buried in the basement of the cottage. The ghost of Brutus Collins appears to Morgan.