At the Maison Derriere, Gillian's on the phone with Lucky Luciano, ostensibly talking about repairs that need to be done to the house but actually serving as a grand expositional repository. We learn that: Gillian and Lucky are partners in the brothel business and that Gillian is promising that Jimmy will sign the deed to the house over to Lucky "as soon as he comes home," which means either Gillian knows her son's dead and isn't telling anybody or else she doesn't know and actually thinks he left for the army. Either way, Lucky doesn't seem overly sympathetic and bluntly tells Gillian to call him when she starts to turn a profit.
In New York, Luciano and Lansky are preparing young Benny "Probably Bugsy Seigel" to make his delivery to Harlem with 96 packets of heroin in Benny's hat. They instruct the kid that if the money comes up short, if anyone looks at him funny, he's to walk. Benny would rather rely on the gun he's packing, and he brandishes it with all the youthful exuberance of a fucking idiot. When even Charlie Luciano thinks you're a hotheaded idiot, that's saying something. He asks for cab fare, then leaves.
The subject changes from their wariness over their live wire of a teenage associate to their continuing problems with Masseria and the downtown mob. Lansky wants to come to a settlement -- he says if they approach Masseria with a plan to cut him in on heroin from the get-go, they look like gentlemen and get to set the terms besides. It rubs Lucky the wrong way to have to cut him in like this, but he's got to know Lansky is right. Lansky promises it's just for now.
At St. Theresa's, Margaret runs into Drs. Landau and Mason. She kind of pointedly glares at Mason, and he gets the hint and buzzes off to his rounds. Landau offers congratulations on the St. Gregory medal, and Margaret says she hopes he can be there at the ceremony itself. He thanks her for the invitation and says he hopes there are no hard feelings from New Year's Eve. She pretends to forget it even happened.