- Carolyn tells Vicki the legend of Widows' Hill. It's revealed that Burke Devlin was sent to prison ten years ago. Carolyn is fascinated by the charming and dangerous Burke.
- Elizabeth is visited by Bill Malloy, the manager of the Collins Fishing Fleet and Cannery. Like everyone else, he is concerned about the recent arrival of Burke Devlin. It is revealed that the first 5 years of Burke's 10 year absence from Collinsport were spent in prison. Upstairs, Carolyn tells Vicki that three women committed suicide by jumping from the cliffs at Widows' Hill and legend says a fourth -a governess- will die there. Carolyn admits that she has cold-feet when she considers marriage with Joe, but she is fascinated with Burke. Carolyn offers to mail a letter for Victoria, but her true intention is to find Burke in town.—L. Hamre
- Malloy goes to the Collinsport Inn and calls Burke's room. He tells Burke that he has come to talk to him and Burke hangs up on him. Malloy storms out.
At Collinwood Elizabeth is clearing away the tea service when there is a knock at the door. It is Malloy, who tells her he has something important to discuss with her. They go into the drawing room. Malloy gives her some contracts to look over while he makes a phone call to tell his secretary where he is. Elizabeth asks him if he's come to talk about the price of sardines or Burke Devlin. Malloy tells her he spoke to Burke the night before and tried again before coming to Collinwood but Burke refused to talk to him.
Carolyn comes into the room. Elizabeth tells her she and Malloy are talking business, but Carolyn heard Burke's name and asks what he's like. Malloy tells her Burke is the one who broke up the fight at the Blue Whale and Carolyn remarks on how handsome he is before leaving. Malloy tells Elizabeth that she needs to get Carolyn out of that tomb of a house and she agrees. Malloy warns her that things are going to start happening soon and Carolyn will see ghosts she never knew existed if she doesn't leave. Elizabeth says there are no ghosts, and Malloy points out that sometimes ghosts like Burke Devlin come back, and that the years he spent in prison have filled him with hate. Elizabeth insists Burke went to prison because he broke the law, and Malloy replies "Did he?" Elizabeth says she is not afraid of Burke Devlin, Malloy promises to stand beside her and help fight off whatever Burke has planned.
Carolyn visits Vicki in her room. She tells Vicki more about the legend of Widow's Hill, that Josette was only the first to jump from the cliff. There were two others, both governesses like Vicki, and that legend states the body of a third governess will be found at the foot of the cliff. She asks if Elizabeth fired Vicki after Vicki checked up on her, and Vicki tells her no. Carolyn wishes she can be brave like Vicki. She tells Vicki she had her chance to escape the house when Joe Haskell asked her to marry him, but chickened out. Vicki assures her she has plenty of time to think about getting married. Carolyn then asks Vicki to tell her about Burke Devlin.
In the drawing room, Malloy tells Elizabeth that he doesn't think Burke is evil, but is angry and bitter. Elizabeth mentions he's rich, and Malloy opines that Burke won't feel rich until he's taken away everything the Collins family owns. There is a knock at the door. Elizabeth goes to answer it, but there is no one there. In the foyer, she finds a broken tea cup on the floor. Malloy asks how it happened, and Elizabeth tells him a nine year old poltergeist named David. She admits she is relieved it wasn't Burke at the door, and vows not to live in fear of him. Malloy warns her again not to do nothing about Burke, that he is a dangerous man.
In the bedroom, Vicki tells Carolyn that Burke seems nice on the surface, but there is something sinister about him -- that under his light banter he was always asking questions about Elizabeth and Roger. Carolyn is disappointed to learn that Burke never asked about her, and tells Vicki that the mention of Burke's name was like throwing a bomb in the house. Carolyn is totally fascinated by this man of mystery, and tells Vicki to finish her letter and then offers to mail it in town for her.
Malloy offers Carolyn a chance to join his niece on a trip, but Carolyn refuses saying she knows they're just trying to get her out of town because of Burke. Malloy warns her that things are going to get bad, but she says she can handle Burke.
In town, Carolyn goes to the hotel to mail Vicki's letter and asks Burke if she can come up to his room and talk to him.
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