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Restless at the Albatross, Willie offers to join Nucky on the day's business until he learns his father will also be present. Frustrated with his nephew's extended stay, Nucky tells Willie that while returning to Philadelphia isn't practical, he needs to think about how to turn recent events into an opportunity. Julia, upon hearing an animated Tommy speaking to someone at their front door, is surprised to find Harrow on the other side. That night, they take a walk on the beach with Tommy, who is now interested in astronomy. "He's gotten very concerned about navigating his way back from places. Not so easy, is it?" rebukes Julia.
When Margaret visits Teddy's Catholic school to talk to his teacher, she learns her son was caught playing with matches. Nucky plays dumb when he hears about the boy's fascination with fire. Later, he tries to talk to Teddy and is caught off guard when the boy interprets his presence as a prelude to a beating. HBO presents this epic new drama series that follows the birth and rise of organized crime in 'the world's playground' at the dawn of Prohibition.
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Federal agents Sawicki and Clarkson speak in hushed tones about Nelson Van Alden after he refuses to let Clarkson tag confiscated cash. Clarkson points out that half of all Prohibition agents take bribes and that he spotted Van Alden at a barn where bootlegging was clearly going on. Katy whispers to Margaret when she arrives home from dinner—she knows she's the Peggy Rohan she enquired about.
Nucky meets with Mickey Doyle at the Old Rumpus, the burlesque club that replaced the Onyx. He orders Mickey to round up his workers at the warehouse for protection. Nucky takes a call from Sally in Cuba, and she assures him that Bacardi's Maxim Ronis is fine, but eager for a bigger payout. Nucky tells her that Senator Lloyd has "flown the coop," but he has a "big fish coming down from Boston" looking to get into the liquor business.
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Narcisse and his men are brought out in handcuffs, as Chalky escapes. At the Farraday Electric Iron Company, the men role-play sales calls. When the boss calls Van Alden to participate, his partner teases him ruthlessly to the amusement of the entire office.
Eli arrives home and sees how much his children have grown in his absence. June tells him that their eldest son Willie took a job at the lumberyard to make ends meet. Determined to give his son and family the life they had prior to his arrest, Eli swallows his pride and goes to work at Mickey's warehouse. Eddie Cantor entertains the Thompsons' guests with flapper and performer Billie Kent. Meeting with his fellow gangsters, Nucky reveals his new business plan to export to Rothstein only.
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Back in Atlantic City, Eddie finds himself growing weary of his role serving Nucky. Nucky is also unhappy that he had to go to Bader, not the other way around. During Nucky's interrogation of Bader, Eddie comports himself well, impressing Nucky. In Chicago, Nelson Van Alden, using the alias George Mueller, continues to work off his debt to Dean O'Banion by delivering flowers—and beatings. O'Banion wants to further employ Van Alden's muscle by sending him to help the Capones with their "election efforts" in Cicero.
Nucky gives a speech and acknowledges Attorney General Harry Daugherty, representing the Harding administration. Agents Sawicki and Clarkson pull up to Mickey Doyle's warehouse to investigate the bootlegging operation they suspect Van Alden to be involved in. As Clarkson reaches the doors, the entire warehouse explodes from Owen's bomb, engulfing Clarkson in flames.
Margaret chastises him for forgetting their meeting with the Bishop's man to discuss his knighting at the St. Gregory Award ceremony in gratitude for his donation to the Catholic Church. Forced to take the meeting alone, Margaret seizes the opportunity to pressure the scheduling of a private audience with Bishop Norman during the reception. Margaret, now a board member (a result of the Thompsons' generous land donation), takes a tour of St. Theresa's Catholic hospital. The group is interrupted when a woman, Mrs. Shearer, miscarries in the hospital lobby.
In order to avoid dealing with Eddie's death, Nucky heads to Florida to finalize the land deal he made with August Tucker and Meyer Lansky. On the way, he stops in New York City and has a strained reunion with Margaret at Penn Station. Nucky reveals Eddie has died and presents her with a birthday gift for Teddy. Margaret, wary about sharing details about her new life, will only say that she works in an office downtown. While sorry to hear Eddie is gone, she tells Nucky he can't continue to involve her in his life. Fern and her mother, Marie, sit on the couch opposite Milton, who refuses to believe there is no money.
Madden agrees to arrange a meeting between them at the Cotton Club. Rothstein, who has been having money problems of his own, sells his $500,000 insurance policy to Nucky , instead of having Mickey killed. Nucky comments, "It's probably the best investment I'll ever make. I know a dozen people who'd kill Mickey for free." While Nelson Van Alden attempts to fix the kitchen sink, his wife, Sigrid, complains that nothing in their kit-house works properly. She mocks his job with Dean O'Banion, doubting that Van Alden is much of a tough guy.
The other gangsters do not trust Luciano because of his affiliation with Masseria, but Maranzano welcomes Luciano with open arms. As a symbol of his loyalty, Luciano slices his hand, making a blood oath to Maranzano and the others. All the men in attendance follow suit, symbolizing their brotherhood and loyalty. At the Conors & Gould office, Lawrence Conors calls Margaret into his office to gain access to Bennett's files. Daughter sings the blues at a small honky tonk in Tulsa, Oklahoma; Van Alden picks up Eli in Chicago, as the two exchange a look of recognition.
As their car turns a corner, gunshots ring out and McGarrigle drops dead. Nielan tells Nucky he'll need 1000 machine guns, for which he'll receive 10,000 cases of whiskey - the fight isn't over. At the dock, Nucky confronts Owen about McGarrigle's execution, informing him he doesn't like secrets. As they head for the ship, Owen reads Nucky's telegrams to him, one from his lawyer regarding his trial date, and the other from Margaret with news of Emily's polio. When Emily won't get out of bed, Margaret realizes she cannot move her legs. Dr. Surran rushes Teddy out of the room and tells Margaret they will need to quarantine Emily for polio immediately.
Back in Havre de Grace, Chalky sits with Levi and Scrapper on the porch of Oscar's Boneau's house, contemplating everything he's lost. Weems departs Oscar Boneau's for a night on the town in Baltimore. She asks Chalky what they're doing, reminding him that he has a family.
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Chalky, who will only admit that "getting caught" is what landed him in jail, is a frequent target of the guards' wrath. At the end of the work day, a commotion breaks out when a prisoner snaps and kills a guard with his pickaxe. In the chaos, Chalky turns a rifle on another guard, then uses the guard's keys to unshackle his leg irons. While making a break for the woods, Chalky is tackled by Milton, a simple but dangerous prisoner, who points a gun at him.
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