They manage to corral him, while he protests his innocence. Ralph brings up the death threat, and he says he wrote the letter because Merrick killed his daughter.
With things a little calmer, he explains that he and his family were herded into a Merrick-built Japanese-American internment camp that caused his nine-year-old daughter's double-pneumonia. He swore his revenge, and one day discovered Merrick was building something nearby -- he caught him at night, slashed him on the chest but couldn't finish the job. Instead he drove him to the hospital, explained what happened and then started visiting him in the hospital. "Eventually we forgave each other for everything," he says, but eventually Merrick's wife picked him up and Watanabe never saw him again. Of course, this is different from the story that Merrick told his wife, and Watanabe's description of her as red-headed also doesn't jibe.
Rizzo has gotten the news about Diane Desmond not being allowed to sing, and he's almost as mad that he had no idea about her arrest -- no conviction -- with a "few feel-good pills," as she puts it, in the Miami airport. Meanwhile, Mia is opening a package from Jack, including a card that says he wants to dance with her again and an LP of honky-tonk music. When Rizzo takes an interest, she passes it off as a local manager trying to get his acts at the Savoy. "Over my dead body!" snarls Rizzo, throwing the honky-tonk record into the trash. He's pissed about "Roy Rogers and Howdy Doody" affecting their business and wants to do something about it.
Meanwhile, Dixon is such a great undercover agent that he's parading around the sheriff's office in the waiter's uniform he plans to wear undercover. He flirts with Yvonne for a little bit, before dropping the bomb that Christmas is usually a little subdued around his place because his mom died around the holidays. Yvonne didn't know.
Jack is calling the Savoy and asking for Mia -- under the watchful stinkeye of Ralph -- and asking if she got his package, and all I can say is Jack wishes she got his package. When he's done working on his love life, Ralph tells him Pete Holm has no knowledge of Merrick's mistress. "We've gotta find her. Mistress equals motive," says Jack. I love how these two cowboys -- well, at least Ralph was an MP -- are full-fledged Dragnet officers already.
Yvonne suggests calling a jewelry store because a man with a mistress buys jewelry and asking for the address Merrick was sending it to. Next thing we know, the Lamb brothers are being shot at from behind a closed door by a panicky redhead who drops the gun and then bolts, grabbing a suitcase while screaming over top of the wacky caper music that's playing. She fearfully tells them she'll double whatever Nicky's paying them. That would be Nicky Tomisano, the redhead's husband. She says he killed Merrick, and she knows she's next.