Peggy's just opening a gift in her office when Pete comes barging in: "I can save you the trouble. It's from him, and it's expensive." I'd guess a pony, but it would have to be really small. Actually, it's a scarf, which Pete casually identifies as Hermès. Peggy: "I hope yours is a different color." That's the second time she's casually insulted his masculinity lately. Given that she's been to bed with him twice, I wonder what she knows that we don't. Peggy keeps up the witty pace by reading the card and adding her own editorial commentary: "'Elegance and success. Duck.' I wonder who wrote that for him." Hee. Pete says he doesn't trust him, and when Peggy says it's logical for him to be after them, as they're very important at SC (ahem), Pete asks her if "he" put her on Hilton. She doesn't know anything: "Stop barging in here and infecting me with your anxiety!" We can work on the barging in, but the anxiety's pretty much what he's got to offer. Peggy opines that the scarf is beautiful, and Pete confesses that Duck sent him a box of Cuban cigars. "Although I'm starting to think they're not that hard to come by." Heh. Peggy's brain then finally processes the "Hilton" part of the conversation, and after Pete fills her in a bit on his visit, she tells him her mother gave her his book, adding by way of explanation, "He's Catholic." Awesome. Pete notes that while Hilton isn't as big as Lucky Strike, it would be nice to have a huge account that doesn't necessitate "hiding from the FTC," but Peggy's back to being hypnotized by the scarf, and she says she's keeping it, as Duck said himself that they don't have to be a package deal, so they should just do what they want. Pete, however, stands and points out that Duck isn't at SC anymore because Don forced him out. Peggy doesn't see the issue, as Don's basically got a me-against-the-world attitude anyway (like, no kidding), but Pete, while acknowledging that, says it's Duck who's out for revenge here, and even though Peggy says she's not going anywhere, he counsels her to send the gift back. I think he's looking out for her in his own special Pete Campbell way, but while it's still none of his business, were I in her shoes I'd probably return it for one simple reason: How is she going to explain having such an expensive thing to anyone?
Don enters Bertram's office to find him, Pryce, and Roger having a celebratory drinks party, and given that two of the three of them don't generally knock back the booze like Prohibition is about to return, it's safe to assume they've heard the good news.