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After leaving Atlantic City last week, Jimmy has settled in with Capone and his boss Johnny Torrio, as well as a beautiful prostitute named Pearl. As Capone takes over Greektown for Torrio, he meets with some tension from a local supplier named Sheridan. Capone and Jimmy discuss the territory issue with Sheridan and plan to negotiate a truce; however, Capone’s brash demand for 50% of Sheridan’s take starts trouble between the groups. Sheridan’s men pay a visit Torrio’s whorehouse to cut Pearl’s face and shoot up the place.
For his “surprise” birthday party, Nucky plans to impress and entertain some crucial politicians because they are the key to his future plans, including diverting funds to build roads for his bootlegging routes. He is able to get their assurances that they can be bought for the right price. At the same time, Nucky tries to find out who lynched one of Chalky’s men. Chalky tortures a KKK leader, brought in by Eli, only to find out that the Klan had nothing to do with the lynching. It turns out that Mickey and his Italian financial backers were responsible and now plan to steal some of the money they are owed from Nucky.
Margaret continues her work in the boutique and, while delivering a dress for Ms. Danziger, impresses Nucky and his politician friends with her candid and clever thoughts on Women’s Suffrage. Nucky seems more interested in her quiet intelligence than Lucy’s overt sexuality.
Luciano questions Gillian, Jimmy’s mother, about his whereabouts, but is met with cheeky resistance. He follows her, watching her shows, and becomes attracted to her. The two plan a rendezvous after her show.