Magnus and Eskil soon realized that they had a thorny problem facing them, but they had also agreed briefly in whispers that now was definitely not the right time or place to discuss the matter, either with Arn or amongst themselves.
After the Christmas feast at Husaby the Folkungs and their retainers rode south to Eriksberg to visit Joar Jedvardsson, Knut Eriksson, and their kinsmen for several days.
After much entertainment they returned wearily to Arnäs. But it wasn't long before Knut Eriksson and his wild Norwegian retainers arrived at Arnäs. They came armed as if they intended to do more than go on a successful wolf hunt up toward Tiveden Forest, although the hunt was the excuse they gave.
The weather, however, was at the moment unfit for hunting, which seemed to suit Knut Eriksson even better, since he had many things to discuss with the Folkungs. With Eskil he wanted to talk about what sort of business he ought to conduct once he became the king of the Swedes and Goths, and Eskil had plenty to say on that subject. Above all, Eskil thought that whoever ruled both Svealand and Eastern Götaland should do much more business with Saxony and Lübeck than they had done before. They had not understood how to exploit the Eastern Sea, acting as if it ended at the boundary with Denmark south of the forests of Småland. Such a trade route by sea could be very profitable, if they were allowed to have it in peace, which would mean concluding an agreement with the Lübeckers above all. But then they would also have to see about minting new royal coins, for the time was undoubtedly past when they could merely trade marten pelts for foreign goods. And then they would have to establish a trade route between Norway and the eastern parts of the realm that would extend from Lödöse across Lake Vänern, traversing the lands of Arnäs and then Lake Vättern. Above all Eskil thought that this route would be able to do plenty of business in dried fish from Lofoten, which could be purchased for almost nothing and then sold at a tidy profit.
Knut Eriksson was very enthusiastic about these business ideas. He said that as soon as he had won the three royal crowns, Eskil would become his foremost adviser in everything that had to do with money and trade.
There was only one thing that could be done at once, however, and that was the negotiation with Emund One-Hand over Forsvik, since his land was the missing link in the route from Norway to Svealand and Eastern Götaland. But since it was an arrangement that could be very good for one party and less favorable for the other, Eskil thought that they would have to conclude it in the new way, with a written bill of sale. There was little parchment and few writing implements at Arnäs but surely enough to accomplish this. Arn was asked whether he could compose such a document, and he said he could. At both Vitae Schola and Varnhem he had repeatedly worked alongside the archivarius, and at both these monasteries they archived many letters of this type dealing with donations and purchases. If they told him who would be buying what from whom and at what price, Arn could draw up such a letter immediately.
Arn listened briefly to Eskil's descriptions and then went up to the accounting room in the tower. But he came to supper with a beautiful letter on parchment to which he had affixed Magnus Folkesson's wax seal. Since the letter was in Latin, as such documents ought to be to possess the proper authority, he had to read it aloud in the vernacular several times for the others:
In the name of the Holy and Indivisible Trinity, I, Magnus, lord of Arnäs, and my two sons Eskil and Arn, declare both for those now living and for posterity that the shameful and lengthy dispute between Emund Ulvbane and us and our sons is now at an end. And we have with God's help and the consent of both parties concluded the dispute as follows: that Emund Ulvbane shall transfer to us the estate of Forsvik with all appurtenances, fields, forests, fishing grounds, and all necessities belonging to the estate so that it may freely and forever after be owned by us. To this agreement for all posterity is attached 50 marks in silver in the people's language.
Also I, Knut Eriksson, who next according to God have been the instigator of this conveyance and reconciliation, have with many witnesses participated in this conveyance. And so that this may be confirmed and irrevocable, we have sealed this letter with the impressions of both seals of Magnus and Knut and, through the power invested in us by Our Lord Jesus Christ, his Mother the Eternal Virgin Mary, and all the saints, we consign anyone who breaks this contract and agreement to outlawry. Witnesses hereto are Eskil and Arn Magnusson, Eyvind Jonsson, Orm Rögnvaldsen, Ragnar the Dean of Forshem, and many others, whose names we found too extensive to append.
After Arn had read his text three times so that all understood what it said, a long and lively discussion ensued. The Norwegian kinsmen thought that he shouldn't give Emund the name of Ulvbane but should properly call him One-Hand instead. Magnus countered that it was more likely that Emund would set his seal to a document that called him Ulvbane. Grumbling, the rams from the North eventually acquiesced.
After this Knut did not want to be called only by his patronymic but also with the appended rex sveorum et gothorum, words which at first Arn alone understood. He immediately objected to this title, observing that it would be like selling the skin before the bear was shot.
None of the others could make head or tail of this until Arn told them that the words meant King of the Swedes and Goths. Magnus then rose to speak, saying that he thought everyone present hoped, clear as water, that this would become true within the not-too-distant future. It should undoubtedly have happened already, but far too many Swedes and Goths actually believed that the king of Svealand and Eastern Götaland was Karl Sverkersson. Yet this was a document that would lose value if it possessed the slightest hint of inaccuracy. If they simply affixed Knut Eriksson's seal to the letter, then for all posterity it would have the same true value without those four additional words.
When Knut didn't seem willing to acquiesce in this matter, Arn pointed out that he had actually written the document as if Knut were already king, but with words that could have a double meaning, and then he read aloud the words, slowly and clearly:
through the power invested in us by Our Lord Jesus Christ, his Mother the Eternal Virgin Mary, and all the saints, we consign anyone who breaks this contract and agreement to outlawry . . .
Arn explained that if one read this "we" to mean Knut Eriksson alone, then Knut had his power from God and only a king could have such. Besides, only a king had the sole authority to condemn someone to outlawry. The intention was to suggest that Knut Eriksson was king by God's grace, yet without saying it directly.