- Knox resents newly-appointed Hoover taking credit for his work, Roy helps Gillian kick heroin, Nucky and Eli clash over Willie, and Torrio feels that O'Banion's betrayed him.
- Eli confronts Nucky after Willie makes an unpopular decision. Margaret has a surprise encounter at her job on Wall Street. Joe Masseria orders Lucky Luciano to return to Tampa and deal with Vincenzo Petrucelli. Gillian goes cold turkey with Roy Phillips' help. Still seething over his brother's death, Al Capone tries to get Johnny Torrio to turn on rival gangster Dean O'Banion. As the relationship between Chalky and Daughter Maitland deepens, Valentin Narcisse exerts his control over Dunn Purnsley and the Northside.—Anonymous
- In broad daylight, Al Capone approaches and shoots in the head a Chicago police officer.
Eli shows Nucky the handkerchief Agent Knox gave him with the "JMT" monogram, saying it's odd. Nucky doesn't seem as concerned but agrees to go ahead and try to get Knox's boss, Frederick Elliott, on the phone. Nucky calls his new assistant, Sid, and seems annoyed with him. Eli asks Nucky about the black eye he came back with from Florida. Nucky claims he hit a door. Eli says he's heard about Sally, and that she's "a pistol." Sid comes back and tells Nucky that Elliott doesn't work at the Treasury Department anymore.
George Remus, still referring to himself in the third-person, sits across a long table from J. Edgar Hoover, Agent Knox and Esther Randolph. He's a cooperating witness. Knox asks Remus to confirm that Nucky is the linch pin to a multi-city network of criminals. Hoover demands that Remus stop referring to himself in the third-person. Remus does. Randolph and Knox are trying to urge Hoover to make dozens of arrests, but he's reluctant to make a mistake. After Knox leaves the room, Randolph tells Hoover that the new attorney general thinks the plan is a great idea.
Al Capone rushes into Johnny Torrio's office. Torrio asks Al if he killed the cop he's just read about in the newspaper. Capone says he wants to kill Dean O'Banion now, too, to avenge the killing of his brother, Frank. Torrio doesn't want to start a war, and warns Capone not to impede on his business with O'Banion. Capone leaves the room in a huff.
In New York City, we see Margaret at work for a Mr. Bennett. He asks about whether her husband invested in Anaconda Realty, which he'd suggested previously. He didn't. She says she talked him out of it because it was "a risk." Mr. Bennett says they lost a chance at a fortune. Margaret leaves and Mr. Bennett's guest suddenly wants to know more about Anaconda Realty.
Lucky Luciano comes to see Joe Masseria and a couple of his associates. Lucky quickly confesses to having been down in Tampa with Meyer Lansky. He says he turned down the business offer and wants to know why he's there. The associates says Vincenzo Petrucelli is the biggest importer of heroin now, and they want Lucky to go back to Tampa and see if some heroin can come with the rum shipments he sends north.
Willie Thompson is laying in bed naked with Doris and she randomly asks him if he believes in God. He says, "Of course," then wonders why she asked. He gets up to leave and she pulls him back into bed. She asks about his roommate Clayton and he gets up again. This time he really leaves.
Mr. Bennett comes around and praises Margaret for having helped close a deal, and slips her a $10 bill.
"And, to think, I considered waitressing," she tells a colleague.
Torrio is visiting O'Banion, who insists it wasn't him to sent the cops to assassinate Frank Capone. Torrio agrees to buy an old brewery. O'Banion now wants Torrio to give him a few blocks in Greektown, but Torrio rebuffs this request.
Gillian is going through withdrawals while Roy Phillips watches over her as she writhes and vomits in bed.
The Onyx Club is hopping and Daughter Maitland is doing the song and dance while Gaston Means watches from above. He's meeting with Nucky, giving him background on Knox. It doesn't provide much more than Nucky already knew. Means says there's simply no more information to provide, and he has no answer for the hanky's monogram. Means also says Elliott simply retired, sold his home and left no forwarding address. Nucky's troubled.
Meanwhile, Chalky continues to watch Daughter closely from behind a pillar in the middle of the club.
Margaret is called into Mr. Bennett's office to close another deal and she's stunned when she sees this investor is Arnold Rothstein, who is working with Mr. Bennett under the name "Abe Redstone." Rothstein immediately gets up and says he has a feeling he's met her before. She says he might be mistaken. He says it might have been his mistake. Bennett asks Margaret about her husband's investment in Anaconda Realty. Margaret goes through the motions on their act, but leaves while saying she doesn't feel well.
Chalky slips Dr. Narcisse an envelope with his cut and Dr. Narcisse is pleased to see that Daughter Maitland has been a success. Chalky wants to extend her run, but Narcisse says she's committed to appear in Louisville. Dr. Narcisse suggests an arrangement could be made if Chalky does something for him. He says he wants to open a Universal Negro Improvement Association chapter on the north side of Atlantic City. Chalky says it sounds "congenial enough." Dr. Narcisse seems pleased and Daughter will stay for another month.
Willie sits through a lecture in which the grizzly murder of William Wilson in Edgar Allen Poe's short story. The professor asks Willie about it and Willie leaves.
Mr. Bennett asks Margaret what happened in his office and she promises it won't happen again. Bennett says "Mr. Redstone" was charmed and invested $150,000 in Anaconda. He slips her a $100 bill this time and says it's "from him, not me." Margaret's phone rings and it's Arnold Rothstein, thanking her for her discretion. He asks if she'd like the same and she says she would.
"Until next time," he says, hanging up the phone.
Roy brings Gillian some water and says she looks "at peace" now that "all that poison's out of your system." Roy tells her she's important to him and that his ambition isn't worth much without someone to share it with. They kiss.
O'Banion visits Torrio, who gives him money for the old brewery. Torrio doesn't care much for the purchase, but just as it's wrapping up the police invade. O'Banion claims he doesn't own the brewery and Torrio thinks O'Banion set up the raid.
Dunn Purnsley is answering to questions from members of the black community worried about the indecent behavior and shooting up of drugs. They want to know where Chalky is, and one man suggests Chalky is too bust with "the white folk." Deacon Cuffy says he will have to inform Chalky about the selling of the heroin if it persists. Dr. Narcisse is listening to all this and interrupts to introduce himself. He talks about the "scourge" of heroin and alcohol, but says the true scourge is "apathy" and questions Chalky's "misguided ambition." Dr. Narcisse says he's come, with Chalky's agreement, to "breathe new life into this community" and vows, with Deacon Cuffy, to "restore this community to its full and glorious potential."
Eli finds defending the claim in a conversation at home about whether girls need to go to college. Willie tells his sister she can take his spot because he's dropped out of school. Eli grills his son about quitting school, questioning Willie's manhood. Nucky is there and Willie says his uncle is doing just find without having gone to college. Nucky tells Willie to listen to his father, which Eli doesn't like, saying that Willie will listen because he's his father, not because Nucky told him to listen. Willie says he was the one making money for the family while Eli was in jail, and Willie's sister is surprised to learn her father had been in jail. Eli puts his hand on Willie's shoulder -- aiming to take control of the situation -- and when Willie tells him to take his hand off, Eli hits him and wrestles him to the ground, stopping only when Nucky pulls Eli off of his son. Eli yells at Willie that if he leaves school he needs to leave his house. Willie says he's leaving the house anyway, then leaves.
Chalky and Daughter have sex and she asks afterward what Dr. Narcisse said. Chalky says she won't be packing any bags just yet, but she says she wishes she won't be packing them ever again. He asks her what Dr. Narcisse is like and she says he's nice. She says he doesn't treat her as good as Chalky does. Chalky asks if Dr. Narcisse is kin, or something. She rolls over and explains that her mother was a prostitute and was killed, and Daughter saw the whole thing. She says Dr. Narcisse found her and "put his wings around me ever since." Chalky asks her if she and Dr. Narcisse "ever" and she says no. She starts to get up and says she wants a year-long engagement at the Onyx. She gets up and gets dressed to go rehearse.
Treasury Secretary Andrew Mellon is at a banquet introducing J. Edgar Hoover as the new director of the Bureau of Investigation. Hoover stands up and mentions Jim Tolliver, the man we've known as Agent Knox until now, saying they went to law school together. Hoover says there will no longer be a lax attitude toward crime in and out of the government. He talks about the nationwide criminal conspiracy at work. Tolliver looks upset as Hoover talks about how he will pursue this network, and he walks out while Hoover is still talking.
Gillian brings Roy a meal in bed. When he says she's going to spoil him, she says, "You have no idea." She looks happy as they kiss and she tells him the reason she's smiling is "a secret." She asks him to tell one of his secrets. He reminds her about how when they met he told her he was married. He says the day after he met Gillian he began divorce proceedings. He then asks her why she was smiling, and she says it's because made him feel something she hasn't felt in a very long time: happiness.
Tolliver, who's been drinking, vents about Hoover's sudden realization -- which he's been trying to convince Hoover about -- to Gaston Means. Means warns Tolliver again carrying around monogramed handkerchiefs. Tolliver snaps and tells Means not to tell him what to do.
Eli comes back to his house and finds Nucky sitting on the porch. Eli is drunk and tells Nucky to stay out of his family's business. Nucky says he's "going to chalk this up to whiskey and bad timing," and tells Eli that Willie is a good kid and, like his father, sometimes acts without thinking. Even as Nucky is leaving, Eli shouts, "My family!"
Capone welcomes Torrio back to the brother out of jail. Torrio complains about how long he was in the cell and Capone tells him O'Banion was out in an hour. Torrio says a man his age doesn't need to be in prison and, instead, needs to relax. He starts to leave and Capone asks if there's anything he can do. Torrio asks Capone to kill O'Banion.
Nucky gets home to find Willie sitting on his porch. He warns Willie that he needs to trust him and needs men around him who can keep their wits. Nucky tells Willie to go home and get some rest. Willie says Eli will be awake and drunk and it will upset his mother. Nucky tells him he can stay the night, but they're going to talk in the morning.
Dunn Purnsley visits Deacon Cuffy at night as he's leaving church and says he knows who's been selling heroin. The deacon says he knows, too, and is on his way to visit Chalky. Purnsley says he's finding his way back to the path of righteousness, but the deacon isn't buying it, saying, "a guilty man will say anything to save his skin." Purnsley asks the deacon to pray with him, extending a hand. The deacon does and Purnsley jams a knife into the deacon's stomach, leaving him for dead in the middle of his church.
In her dressing room, Daughter prays before moving over to where Dr. Narcisse is sitting. She unbuttons his shirt, revealing a significant scar on his chest. She dabs his chest with a damp cloth. She tells Dr. Narcisse that Chalky doesn't seem pleased to have to answer to Nucky. Dr. Narcisse asks her about Chalky and whether he's pleased with her. Daughter says she believes he is. Dr. Narcisse mentions Daughter's mother, saying "she fought the spirit." He then adds, "these hands set her free and set you on your path," referring to his own killing of Daughter's mother and subsequent caring for Daughter. He tells her she will sing for him now, and she kisses his hand before heading toward the stage to sing, "Somebody Loves Me."
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