The story begins in a seedy dive on the waterfront of Suva, where the narrator and other derelict sailors encounter the infamous Captain Bill Branner. Known for his madness and reckless nature, Captain Bill is in a drunken rage because he cannot find a crew to sail with him. His previous crew has abandoned him, leaving only his vicious mate, Bully Sloan, by his side. Branner, desperate to man his ship, persuades a group of beachcombers, including the narrator, with the promise of a grand pearl find.

The newly assembled crew, comprised of the lowest dregs of society, sets sail that very night. The voyage is immediately fraught with violence and chaos. Within three days, the brutality of Bully Sloan is made clear when he kills a Melbourne bum for insubordination. The ship becomes a cauldron of fear and hostility, with fights and attempted murders becoming commonplace. Captain Bill’s insanity only worsens, exacerbated by constant drinking, and he drives the ship into a dangerous storm.

One fateful night, under Captain Bill's erratic steering, the ship crashes onto a reef and begins to sink. Amidst the panic, only nine of the crew manage to escape to a nearby island, while the rest perish. Those who survive are Banda Bill, Hurley, Dutchy, Wallaroo, Ballarat, Wagga Joe, Reddy, the narrator, and Bully Sloan. Stranded and disheartened, they are left to fend for themselves on a desolate island.

As the sun rises, revealing the full extent of their predicament, the survivors curse their fate and each other. Despite their situation, Bully Sloan still holds his position of power, maintaining control with his pistol. The group begins to explore the island and scavenge for food, their resentment and mistrust festering. The fragment ends with Banda Bill proposing to the narrator that this is the perfect opportunity to finally deal with Bully Sloan once and for all.