diff --git a/doc/fixes35.0 b/doc/fixes35.0
index 8983b30e5..0b020266d 100644
--- a/doc/fixes35.0
+++ b/doc/fixes35.0
@@ -355,6 +355,8 @@ Eye of the Aethiopica, Eyes of the Overworld, and Sceptre of Might must be
 Mitre of Holiness and Tsurugi of Muramasa convey Protection when worn/wielded
 effectiveness of magic cancellation by worn armor has been reduced
 Protection improves the effectiveness of magic cancellation
+if an angry shopkeeper chased the hero to a different level and then got paid
+	off, he'd dismiss kops on that other level but not on his shop level
 
 
 Platform- and/or Interface-Specific Fixes
diff --git a/include/extern.h b/include/extern.h
index 943366b8b..8551a81bf 100644
--- a/include/extern.h
+++ b/include/extern.h
@@ -2051,6 +2051,7 @@ E void FDECL(delete_contents, (struct obj *));
 E void FDECL(obfree, (struct obj *,struct obj *));
 E void FDECL(home_shk, (struct monst *,BOOLEAN_P));
 E void FDECL(make_happy_shk, (struct monst *,BOOLEAN_P));
+E void FDECL(make_happy_shoppers, (BOOLEAN_P));
 E void FDECL(hot_pursuit, (struct monst *));
 E void FDECL(make_angry_shk, (struct monst *,XCHAR_P,XCHAR_P));
 E int NDECL(dopay);
diff --git a/include/mextra.h b/include/mextra.h
index 85e842cc0..3caa6ff61 100644
--- a/include/mextra.h
+++ b/include/mextra.h
@@ -1,5 +1,4 @@
 /* NetHack 3.5	mextra.h	$Date$  $Revision$ */
-/*	SCCS Id: @(#)mextra.h	3.5	2009/01/30	*/
 /* Copyright (c) Stichting Mathematisch Centrum, Amsterdam, 1985. */
 /* NetHack may be freely redistributed.  See license for details. */
 
@@ -119,6 +118,7 @@ struct eshk {
 	schar unused;		/* to force alignment for stupid compilers */
 	boolean following;	/* following customer since he owes us sth */
 	boolean surcharge;	/* angry shk inflates prices */
+	boolean dismiss_kops;	/* pacified shk sends kops away */
 	coord shk;		/* usual position shopkeeper */
 	coord shd;		/* position shop door */
 	d_level shoplevel;	/* level (& dungeon) of his shop */
diff --git a/src/dog.c b/src/dog.c
index cf4b40042..035e5cef7 100644
--- a/src/dog.c
+++ b/src/dog.c
@@ -1,5 +1,4 @@
 /* NetHack 3.5	dog.c	$Date$  $Revision$ */
-/*	SCCS Id: @(#)dog.c	3.5	2008/10/20	*/
 /* Copyright (c) Stichting Mathematisch Centrum, Amsterdam, 1985. */
 /* NetHack may be freely redistributed.  See license for details. */
 
@@ -218,12 +217,57 @@ void
 losedogs()
 {
 	register struct monst *mtmp, *mtmp0 = 0, *mtmp2;
+	int dismissKops = 0;
 
+	/*
+	 * First, scan migrating_mons for shopkeepers who want to dismiss Kops,
+	 * and scan mydogs for shopkeepers who want to retain kops.
+	 * Second, dismiss kops if warranted, making more room for arrival.
+	 * Third, place monsters accompanying the hero.
+	 * Last, place migrating monsters coming to this level.
+	 *
+	 * Hero might eventually be displaced (due to the third step, but
+	 * occuring later), which is the main reason to do the second step
+	 * sooner (in turn necessitating the first step, rather than combining
+	 * the list scans with monster placement).
+	 */
+
+	/* check for returning shk(s) */
+	for (mtmp = migrating_mons; mtmp; mtmp = mtmp->nmon) {
+	    if (mtmp->mux != u.uz.dnum || mtmp->muy != u.uz.dlevel) continue;
+	    if (mtmp->isshk) {
+		if (ESHK(mtmp)->dismiss_kops) {
+		    if (dismissKops == 0) dismissKops = 1;
+		    ESHK(mtmp)->dismiss_kops = FALSE;	/* reset */
+		} else if (!mtmp->mpeaceful) {
+		    /* an unpacified shk is returning; don't dismiss kops
+		       even if another pacified one is willing to do so */
+		    dismissKops = -1;
+		    /* [keep looping; later monsters might need ESHK reset] */
+		}
+	    }
+	}
+	/* make the same check for mydogs */
+	for (mtmp = mydogs; mtmp && dismissKops >= 0; mtmp = mtmp->nmon) {
+	    if (mtmp->isshk) {
+		/* hostile shk might accompany hero [ESHK(mtmp)->dismiss_kops
+		   can't be set here; it's only used for migrating_mons] */
+		if (!mtmp->mpeaceful) dismissKops = -1;
+	    }
+	}
+
+	/* when a hostile shopkeeper chases hero to another level
+	   and then gets paid off there, get rid of summoned kops
+	   here now that he has returned to his shop level */
+	if (dismissKops > 0) make_happy_shoppers(TRUE);
+
+	/* place pets and/or any other monsters who accompany hero */
 	while ((mtmp = mydogs) != 0) {
 		mydogs = mtmp->nmon;
 		mon_arrive(mtmp, TRUE);
 	}
 
+	/* time for migrating monsters to arrive */
 	for(mtmp = migrating_mons; mtmp; mtmp = mtmp2) {
 		mtmp2 = mtmp->nmon;
 		if (mtmp->mux == u.uz.dnum && mtmp->muy == u.uz.dlevel) {
diff --git a/src/shk.c b/src/shk.c
index cf24d3753..cc7d53d21 100644
--- a/src/shk.c
+++ b/src/shk.c
@@ -1019,13 +1019,23 @@ register boolean silentkops;
 			/* arrive near shop's door */
 			migrate_to_level(shkp, ledger_no(&eshkp->shoplevel),
 					 MIGR_APPROX_XY, &eshkp->shd);
+			/* dismiss kops on that level when shk arrives */
+			eshkp->dismiss_kops = TRUE;
 		}
 		if (vanished)
 		    pline("Satisfied, %s suddenly disappears!", shk_nam);
 	} else if(wasmad)
 		pline("%s calms down.", Monnam(shkp));
 
-	if(!angry_shk_exists()) {
+	make_happy_shoppers(silentkops);
+}
+
+/* called by make_happy_shk() and also by losedogs() for migrating shk */
+void
+make_happy_shoppers(silentkops)
+boolean silentkops;
+{
+	if (!angry_shk_exists()) {
 #ifdef KOPS
 		kops_gone(silentkops);
 #endif
diff --git a/src/shknam.c b/src/shknam.c
index c59675830..83eb902d3 100644
--- a/src/shknam.c
+++ b/src/shknam.c
@@ -1,5 +1,4 @@
 /* NetHack 3.5	shknam.c	$Date$  $Revision$ */
-/*	SCCS Id: @(#)shknam.c	3.5	2007/09/14	*/
 /* Copyright (c) Stichting Mathematisch Centrum, Amsterdam, 1985. */
 /* NetHack may be freely redistributed.  See license for details. */
 
@@ -458,11 +457,12 @@ void
 neweshk(mtmp)
 struct monst *mtmp;
 {
-	if (!mtmp->mextra) mtmp->mextra = newmextra();
-	if (!ESHK(mtmp)) {
+	if (!mtmp->mextra)
+	    mtmp->mextra = newmextra();
+	if (!ESHK(mtmp))
 	    ESHK(mtmp) = (struct eshk *)alloc(sizeof(struct eshk));
-	    (void) memset((genericptr_t) ESHK(mtmp), 0, sizeof(struct eshk));
-	}
+	(void) memset((genericptr_t)ESHK(mtmp), 0, sizeof (struct eshk));
+	ESHK(mtmp)->bill_p = (struct bill_x *)0;
 }
 
 void
@@ -483,6 +483,7 @@ struct mkroom	*sroom;
 {
 	register int sh, sx, sy;
 	struct monst *shk;
+	struct eshk *eshkp;
 
 	/* place the shopkeeper in the given room */
 	sh = sroom->fdoor;
@@ -535,24 +536,23 @@ struct mkroom	*sroom;
 	/* now initialize the shopkeeper monster structure */
 	if(!(shk = makemon(&mons[PM_SHOPKEEPER], sx, sy, MM_ESHK)))
 		return(-1);
+	eshkp = ESHK(shk);	/* makemon(...,MM_ESHK) allocates this */
 	shk->isshk = shk->mpeaceful = 1;
 	set_malign(shk);
 	shk->msleeping = 0;
 	shk->mtrapseen = ~0;	/* we know all the traps already */
-	ESHK(shk)->shoproom = (schar)((sroom - rooms) + ROOMOFFSET);
+	eshkp->shoproom = (schar)((sroom - rooms) + ROOMOFFSET);
 	sroom->resident = shk;
-	ESHK(shk)->shoptype = sroom->rtype;
-	assign_level(&(ESHK(shk)->shoplevel), &u.uz);
-	ESHK(shk)->shd = doors[sh];
-	ESHK(shk)->shk.x = sx;
-	ESHK(shk)->shk.y = sy;
-	ESHK(shk)->robbed = 0L;
-	ESHK(shk)->credit = 0L;
-	ESHK(shk)->debit = 0L;
-	ESHK(shk)->loan = 0L;
-	ESHK(shk)->visitct = 0;
-	ESHK(shk)->following = 0;
-	ESHK(shk)->billct = 0;
+	eshkp->shoptype = sroom->rtype;
+	assign_level(&eshkp->shoplevel, &u.uz);
+	eshkp->shd = doors[sh];
+	eshkp->shk.x = sx;
+	eshkp->shk.y = sy;
+	eshkp->robbed = eshkp->credit = eshkp->debit = eshkp->loan = 0L;
+	eshkp->following = eshkp->surcharge = eshkp->dismiss_kops = FALSE;
+	eshkp->billct = eshkp->visitct = 0;
+	eshkp->bill_p = (struct bill_x *)0;
+	eshkp->customer[0] = '\0';
 #ifndef GOLDOBJ
 	shk->mgold = 1000L + 30L*(long)rnd(100);	/* initial capital */
 #else