Only a few white men live in Fort Yukon. They are called Sour-doughs because, lacing baking powder, they make their bread with sourdough. They dislike the newcomers and enjoy seeing White Fang kill their dogs. One man really enjoys watching the fights - Beauty Smith. He is a horrible person; an evil creature. "In short, Beauty Smith was a monstrosity, and the blame of it lay elsewhere. He was not responsible. The clay of him had been moulded in the making." Part 4, Chapter 2, p.12.
Beauty comes to Gray Beaver's camp to try and buy White Fang. Gray Beaver refuses to sell. Beauty gives up, but returns often, and always with whiskey. Soon, Gray Beaver is addicted to the whiskey, and slowly loses all of his money to his thirst. Again, Beauty tries to buy White Fang, and this time he is paying in bottles of whiskey. Gray Beaver agrees to the trade.
Beauty Smith tries to take White Fang, but is bitten. He leaves the camp and returns with a club. White Fang tries to resist going with Beauty, but is beaten. He finally gives in. However, when he is tied, he quickly bites through the leather and returns to Gray Beaver's camp.
In the morning Gray Beaver brings him back to Beauty Smith, and White Fang receives another beating. Beauty beats White Fang again, with a whip. A weaker dog would have died from the beating, and White Fang is very sick afterwards. Gray Beaver leaves, and goes back to the Mackenzie River. White Fang is tied with chain instead of leather. He cannot escape, and he knows he must do what his new master wants.