The Hobbit

How does the Great Goblin react when he discovers Thorin's sword? Why?

The Hobbit - Chapter 4

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Thorin explains that they are going to see relatives on the East side of the mountains. Other goblins say that a bolt of lightning struck some of their comrades and Thorin's sword is also indicative of his anti-Goblin intentions. The sword is called Orcrist, Goblin-cleaver, but the Goblins call it Biter.