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Horatio is one of many who got thrown into the Colony for a minor crime (in his case, he accidentally killed a man) and is now serving a life sentence for it. He says he can teach you how to be strong like him if you can give him a good reason why. Unless you've already talked to Jeremiah the available choices aren't satisfactory.
To get a good reason, go to the pub. Either pay the bounchers 100 ore or collect the free Scraper armor from Swiney in the Free Mine. Ask Jeremiah about the Rice Lord. Go back to Horatio and he will now be satisfied with your answer, and awards you with +5 strength for free.