"And one day it came to pass that three of the Asa folk, Odin, Loki, and Hœnir, being on a journey, came to Andvari's waterfall just as Otter, having eaten a large salmon, was slumbering on the river bank. When Loki saw him he took up a stone, and threw it with such force that my brother fell dead on the ground. At this the Asas were well content, for they did not know that he was a dwarf's son. And they flayed off his skin and Loki carried it away with him, hanging it over his shoulder.
"Now at eventide they came to the house of my father, and entered in, suspecting no evil. But when Loki, coming last, threw his burden on the floor, the dwarf king recognised the skin, and his face grew black with rage. Before the Asas could defend themselves or flee, he made signs to his servants who bound them fast in the midst of the floor.
"Then the Asas asked what ransom they should pay, and Hreidmar answered and said: 'In the depth of the waterfall lies the Flame of the Waters, the Gold of the Sea, hidden there by the dwarfs, and called by men Andvari's Hoard. Find this for me, and fill with it the otter skin, and cover it outside with the same red gold, and then, and then only, will I let you go free.'
"Now this was a heavy ransom indeed, for not only was Andvari's hoard hidden cunningly away, but the otter skin had the property of stretching itself to an enormous size.
"The Asas, however, determined to do their best, and they sent Loki, who was set free for the purpose, to find the Magic Gold.
"So Loki went down to the river bank and peered and poked and searched. This he did for days, but nowhere could he discover either the dwarf Andvari or his hoard. At length he noticed a wonderfully fine pike, with gills of gold, which each day sported in the foam of the waterfall, and he suspected that this was the dwarf in the form of a fish.
"So he went to Ran, the goddess of the sea, and borrowed her magic net, and taking this to the waterfall he cast it therein; and the pike swam into the net and was caught. Then said Loki:
"What fish of all fishes
Swims strong in the flood,
But hath learnt little wit to unfold?
Thine head must thou buy
If fate thou would'st fly,
And find me the water's red gold."
"The dwarf now resumed his proper form, and answered sulkily:
"Andvari folk call me,
A dwarf is my father,
And deep in the fall is my home.
For of ill-luck a fay
This fate on me lay,
Through wet ways ever to roam."