At the Schroeder home, Margaret is serving out soup and bread for dinner when her husband, the esteemed Hans, wants to know how she got herself dropped off at home earlier. Margaret reiterates her story: she felt faint walking home from church, and "Mr. Thompson" saw her and was kind enough to have his driver take her home. I'm not sure if it's the way they're lighting Kelly MacDonald or if it's makeup or prosthetics or what, but her facial features are very pronounced in this episode. Anyway, Hans grabs her by the back of the head and produces the wad of cash that he found under the mattress. She gathers up whatever strength it takes to tell him that money is for the children, but he angrily shakes her and demands to know where she got it. He assumes she whored herself out for it, but she's not saying. He slaps her, which gets the kids crying, then shoves her down and pockets the cash. So Margaret's not exactly enjoying Prohibition as much as everyone else is.
At the hotel, Nucky greets Colosimo and Torrio, in a funny moment where Nucky appears awkward in the face of their Italian manner of greeting. As they cross the threshold, they pass Michael Shannon in a phone booth. He's casing the scene with another Fed across the room. Shannon's trying to help Junior over there identify the major players, and Junior's having a hard time keeping his Colosimos and Torrios straight, much less the taxonomical briar patch that is Nucky Thompson/Lucky Luciano. Shannon pretty much exhausts his weekly supply of pained sighs in one shot here.
Upstairs, this criminal summit is underway. This whole thing gets a little tangled across the whole episode, so I'll try to keep it simple: Colosimo's the main guy in Chicago, but he's not eager to jump into the bootlegging biz, instead content to rely on the time-honored pastime of whoring. Torrio, however, sees the goldmine in liquor, so he's set up this potential partnership between Nucky and the Luciano/Rothstein tandem, who are eager to get a foothold on the liquor trade in New York. Rothstein, who claims himself a teetotaler, is composed and able to play the conversational just-us-pals game with the three older, more established men. (Rothstein also makes reference to his penchant for gambling, leading Colosimo to reference the killing he made on the recent World Series -- that'd be the 1919 World Series that he arranged for the White Sox to throw, thus scandalizing baseball and America and ultimately leading to Ray Kinsella hearing voices in his cornfield.) Luciano, however, is a hothead who just wants to get down to brass tacks: how much and how many. Nucky scoffs that the younger generation has no respect for the art of conversation, and Lucky seethes and heads to the bathroom, at which point Rothstein steps in as the good cop and makes the actual deal: the entire Canadian Club shipment for 60 grand. And Nucky says Rothstein uses his own men for the pickup. They shake on it, and Torrio offers a "salud" to them both. Michael Stuhlbarg's Rothstein is already presenting as a fascinating figure. Stuhlbarg plays him as shrewd, but also constantly aware of perceptions. Every time Lucky pops off or says something obnoxious, Rothstein subtly checks himself. You can see how a man like that could tiptoe the line between business and crime -- and as a Jew besides. He's worth watching all by himself.