At the Commodore's old mansion, Gillian is filling out checks for the utilities in her dead son's name via the Commodore's big fancy check book. She's living in that big old house with Tommy, Richard Harrow, and a whole lotta prostitutes, as it appears she's running a proper brothel now. One of those prostitutes, Evelyn, is a comparably dowdy young thing apparently on her first day, since Gillian introduces her to the group. All the others are dressed up in prime flapper gear and smoking from cigarette holders -- one of them is playing the harp! So glad the Commodore's accoutrements aren't going to waste. Gillian delivers a pre-holiday pep talk for their increased business and reminds them that there is a $25 fine for boozing with the clientele. She wants her ladies to be polite and charming -- "Gentlemen remain gentlemen only when they must." Stitch THAT on a pillow and send it to me. Ultimately, Richard chases Tommy into the room, and Gillian introduces him to Evelyn as the caretaker. She's all "Charmed, I'm sure," making me wonder about Richard getting a girlfriend this season. Gillian suggests he might want to take Tommy to the carnival for a while.
Chicago. Johnny Torrio's preparing to leave for Italy with his wife for the holiday but is taking one more meeting. He's at the table with Al Capone and fat Jake when Irish Dean O'Banion shows up, complete with flowers for Torrio's wife. O'Banion is sporting the best/most hilarious Chi-CAAAHHH-go accent I've heard in some time, by the way. So the gist is that Fatty McGoo is saying that Dean's been encroaching on the territorial borders of the city, selling Irish booze in Italian town. O'Banion denies it flatly. Torrio offers a toast, and when O'Banion compliments the quality of the liquor, Torrio says it's getting harder and harder to come by. Al can't resist jabbing again, saying that's why it's so important to respect the boundaries. O'Banion inquires as to whether Capone has got mozzarella in his ears, or perhaps is deaf. Torrio scolds O'Banion that Al's son is deaf and the Irishman makes a halfhearted apology.
The men get to the bottom of the issue, a "misunderstanding" of the southern borders of Torrio's territory. Capone doesn't for a second believe this was an honest mistake as O'Banion says, but with nothing else to offer but his word, O'Banion gets up to leave. Before he does, though, he manages to ask Al to say hello for him ... or at least wave. Al lunges for O'Banion, and the Italians scramble to break it up, Torrio yelling for O'Banion to get out. The Irish scoff and chuckle on their way out as Torrio chides at Capone to behave himself, especially while he's gone. Lotta money at stake. Al says it's his New Year's resolution to keep cool, but as soon as Torrio's out of the room, Al tells Jake he's gonna pay O'Banion a visit. Jake asks about all the resolution talk, but Al says it's not New Year's yet.