On his eleventy-first (111th) birthday, the Hobbit Bilbo Baggins decides to write down the full story of the adventure he took 60 years before for his nephew Frodo. Bilbo writes about how, prior to his own actual involvement, the Dwarf Thrór becomes king of Erebor and brings an era of prosperity to his kin until the arrival of Smaug the dragon. Drawn by the amount of gold that the Dwarves have amassed, Smaug destroys the nearby town of Dale before driving the Dwarves out of Erebor. Thrór's grandson, Thorin Oakenshield , sees King Thranduil and his Wood-Elves on a nearby hillside and is dismayed to find them taking their leave rather than aiding his people. This makes Thorin develope an everlasting hatred of elves.