Squeers calls the police,claiming Nick robbed him. Nick and Mrs Smike get a lift to London with pushy stage mother Venetia Crummles and her shy daughter Maria,the Infant Phenomenon, whom Venetia is entering for endless talent contests to compensate for her own lack of success as a singer. Mrs Smike makes Venetia see sense,reconciling mother and daughter but Squeers follows Nick to London and informs Ralph,who has his nephew arrested. Ralph sets about grooming Kat as a hostess in his night club,planning her to deliver her to Hawkovsky to have his way with her in return for financial support. Ralph's secretary Newman Noggs is disgusted but Ralph blackmails him into keeping quiet.
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