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Dain certainly did not have other things when it came ot the Lonely Mountain!
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Where do you get that? He was king. Kings always have things to be doing.
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Why did not he take up abode in the Iron Hills as would be his right as king?
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I've often wondered that myself. However, see answer below.
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Dain was certainly quick to give the Iron Hills up.
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I don't think that there was ever much there. It seems to have been little more than an outpost.
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I am perhaps being to suspicious of Dwarven nature, especially when we are given no specifics of Dwarven politics [ other than all of the houses participating in grudge wars].
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Ah, but you can extrapolate and infer some things from their goings on.