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People become restrained by their ties, Gatlin Meskill had ties; he feared for the Meskill family, worried about Donald Meskill being killed, so when facing the ghost-like Yusuf Zuck, he could only choose to compromise.
Actually, it wasn't just Gatlin Meskill who had ties, Yusuf Zuck had them too; he didn't want to avoid killing off the Meskill family's upper echelon but killing them would mean the Meskill family's outer forces retaliating, harming his own family and friends everywhere, and even if he won, he would have lost in reality.
The Meskill family thought their lives were precious, and Yusuf Zuck thought his friends' lives were more precious than those of the Meskill family.
So, whether it was Gatlin Meskill or Yusuf Zuck, up until now, neither had become completely crazy; they hadn't lost their minds, so they both adhered to their final defenses or bottom lines.