Back in New York, Luciano has taken the Magaddino deal to Lansky, but Lansky is dubious. Looks like Rothstein's caution has rubbed off on him a little bit. He says he doesn't know this Magaddino well enough to do business with him yet. Luciano says HE knows him well enough. More importantly, he openly admits how freaked out he is that they borrowed so much from Masseria to acquire the 15 pounds of heroin that they now have to unload. Lansky's not un-freaked himself, but after what happened last night (Lansky informs Lucky of Owen Sleater's sad fate), they need to be very careful about whom they do business with. Lucky's like, "He's from Buffalo, okay?" That's generally how I make myself seem innocuous, yes. Lansky tells him to let this one go. Lucky's like, "Yeah, yeah," but Meyer says he's serious.
Nucky has hopefully gotten Eddie as drunk as he can in preparation for whatever Samuel has to do. In a telling moment, Samuel asks Nucky what this man's name is. "Eddie," says Nucky. Samuel grits his teeth a bit and says, "I can't call him that." Of course. Even the most well-educated, bourgeois black man can't call a white man by his first name. So it's "Mr. Kessler" who is delirious and muttering in German. Samuel gets started and instructs Nucky and Chalky to hold Eddie down. He starts digging for the bullet, and Eddie, numbed by whiskey as he is, starts screaming. Nucky looks like he might cry. Then, while Samuel's instruments are still inside Eddie's abdomen, the sound of cars pulling up invades the cottage. Everybody kind of freezes, and from outside, Gyp Rosetti calls out for Chalky White. Nucky looks helplessly at Chalky, terrified that this is the moment that Chalky could easily flip on him. Chalky just instructs everybody to keep Eddie quiet. Samuel asks if he should keep going, and Nucky, pressing a cloth over Eddie's mouth to muffle the screams, gives the go-ahead.
Outside, Chalky's men and Gyp's men are in an armed standoff, as Chalky carefully steps out to the front. Rosetti introduces himself as the new man in charge of Atlantic City, and Chalky does his best to play the part of the King of Black-town, barely concerned with what goes on among the whites. Rosetti agrees to have his men put their guns down first, a sign of trust. While inside, Samuel successfully removes the bullet, Rosetti tries to strike up a kinship with Chalky, joking that they were both "left out in the sun too long." Maybe Chalky a bit longer. "You just ain't done cooking yet, friend," says Chalky, though his stone-faced delivery could use some work if he ever wants to make it in comedy. Rosetti pledges that he will treat Chalky good, better than he's been treated up until now. They shake on it, but Rosetti of course "one more thing"s him: "How about I slip 25 Gs in your pocket right now and you let me walk in there and drag Nucky Thompson out by his dick?"