Quote:
Alas, it seems probable that (as Men did later) the Dwarves of the far eastern mansions (and some of the neared ones?) came under the shadow of Morgoth and turned to evil.
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Tolkien's note on Of Dwarves And Men, The Peoples of Middle-earth
Also in some writings the Noldor believed the dwarves would smith to the highest bidder, including Morgoth.