It is told before of Sigurd that he passed some years in merchant voyages, and he came thus to Iceland one winter, and took up his lodging with Thorgils Odson in Saurby; but very few knew where he was. In autumn, when the sheep were being driven into a fold to be slaughtered, a sheep that was to be caught ran to Sigurd; and as Sigurd thought the sheep ran to him for protection, he stretched out his hands to it and lifted it over the fold dyke, and let it run to the hills, saying, "There are not many who seek help from me, so I may well help this one." It happened the same winter that a woman had committed a theft, and Thorgils, who was angry at her for it, was going to punish her; but she ran to Sigurd to ask his help, and he set her upon the bench by his side. Thorgils told him to give her up, and told him what she had committed; but Sigurd begged forgiveness for her since she had come to him for protection, and that Thorgils would dismiss the complaint against her, but Thorgils insisted that she should receive her punishment. When Sigurd saw that Thorgils would not listen to his entreaty, he started up, drew his sword, and bade him take her if he dared; and Thorgils seeing that Sigurd would defend the woman by force of arms, and observing his commanding mien, guessed who he must be, desisted from pursuing the woman, and pardoned her. There were many foreign men there, and Sigurd made the least appearance among them. One day Sigurd came into the sitting-room, and a Northman who was splendidly clothed was playing chess with one of Thorads house-servants. The Northman called Sigurd, and asked him his advice how to play; but when Sigurd looked at the board, he saw the game was lost. The man who was playing against the Northman had a sore foot, so that one toe was bruised, and matter was coming out of it. Sigurd, who was sitting on the bench, takes a straw, and draws it along the floor, so that some young kittens ran after it. He drew the straw always before them, until they came near the house-servant's foot, who jumping up with a scream, threw the chessmen in disorder on the board; and thus it was a dispute how the game had stood. This is given as a proof of Sigurd's cunning. People did not know that he was a learned clerk until the Saturday before Easter, when he consecrated the holy water with chant; and the longer he stayed there the more he was esteemed. The summer after, Sigurd told Thorgils before they parted, that he might with all confidence address his friends to Sigurd Slembidjakn. Thorgils asked how nearly he was related to him, on which he replies, "I am Sigurd Slembidjakn, a son of King Magnus Barefoot." He then left Iceland.
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