Baron Hulot, meanwhile, is rejected by Josépha, who explains bluntly that she has chosen another man because of his larger fortune. Hulot's despair is quickly alleviated when he visits Bette in her lodging and there meets and falls in love with Valérie Marneffe. He showers her with gifts, and soon establishes a luxurious house for her and M. Marneffe, with whom he works at the War Department (Bette joins them in their new home, to serve as an excuse for the Baron's visits). These debts, compounded by the money he borrowed to lavish on Josépha, threaten the Hulot family's financial security. Panicked, he convinces his uncle Johann Fischer to quietly embezzle funds from a War Department outpost in Algiers. Hulot's woes are momentarily abated and Bette's happiness is shattered, when – at the end of the "introduction" – Hortense Hulot marries Wenceslas Steinbock.
Crushed at having lost Steinbock's companyas her intended spouse, Bette swears vengeance on the Hulot family. Her strategy is to work on Baron Hulot's demonstrated weakness for acquiring and lavishing more money than his has on young mistresses. Soon the Baron is completely besotted - and financially over-extended - with Valérie, and completely compromised by repeatedly promoting her husband within the Baron's section of the War Department. Before long, Bette has already contrived to have Crevel and Steinbock also ensnared by Valérie's charms. Hortense discovers Steinbock's infidelity and returns to her mother's home. Before long, the Baron's misconduct becomes known to the War Department; Uncle Johann is arrested in Algeria and commits suicide, the Baron is forced to retire suddenly, his brother, a famous war hero, saves him from prison and then quickly dies of shame over the family disgrace. The Baron deserts inhis family and hides from his creditors. It appears that Valérie, soon a widow, will marry Crevel and thus gain entrance to the Hulot family as Celestine's mother-in-law. In short, the family is devastated by these repeated blows - and Bette's machinations are completely concealed from them.
