The boys have now heard about the job offer, and Harry wonders about the money, saying he heard Don makes thirty grand a year already. Pete announces that Don isn't ten times better than he is, causing the other boys to give him hilarious "you just keep telling yourself that, Princess" looks. Paul offhandedly says that Pete loves Don. "Everybody loves him." Pete tries to deny that, and then the subject is changed when Peggy walks by, looking uncomfortable in an ill-fitting red dress of Joan's. Once she's past them, Paul snarks that she crossed his mind once (although he leaves out the part where he kissed her and she rebuked him), but she's having "a very bad freshman year," no doubt referring to the freshman fifteen. Ken points out that Peggy aced the Bel Jolie thing, and speculates that Peggy slimmed down to get the job at SC, and what they're seeing is the normal her. Pete expresses his disinterest, and thinks maybe she'll leave with Don. Ken then makes a lewd comment about how Peggy went bad before anyone got to "eat her," causing Pete to jump up like he just sat on a cattle prod. Which would be nice to see happen at some point. Pete inquires if Harry's busy. You have to ask?
We pan across a bunch of women seated in a waiting room, presumably at the modeling audition. Betty, in a flowing pink, black, and white number, manages to be both severely overdressed and to look like an ice cream cake. Before she can stew too long, however, Hobart appears and greets her. He's with their art man (also Hobart's brother-in-law, we learn), "Ronnie Gittridge," and if his voice and mannerisms are anything to go by, I wouldn't be surprised to learn that he's seen the view from many a traveling salesman's hotel room. Betty apologizes for her attire, saying the business has changed since she left it, but they pooh-pooh her concerns, and after Hobart warns her that it's just a tryout and Betty counters that she really has done this before, Ronnie leads Betty away.
Harry and Pete are discussing their ad-buying strategy for Secor Laxatives. Pete complains that the Secor people have "absolutely no sense of humor about their product." I'm sure the rest of us can make up for that. Talk turns to reminiscence about the glory of their college days; Pete tells a long-winded story about how his frat's mascot "Mamie" died, so, in order to steal girls' attention from a rival frat who was having a big "beauty-pageant parade," they had a grand funeral for the dog on Main Street. After some chuckling and Harry rightly calling Pete's frat "idiots," Pete has An Idea: Since JFK and Nixon are competing for airtime, they can use their ad-buying for Secor strategically to help Nixon, buying precious airtime in the swing states. "We're selling laxatives, Nixon's selling Nixon, and Kennedy's watching Mamie's funeral." Pete explains this strategy so poorly here (he seems to miss the fact that they can't buy time and give it to Nixon, so their actions will detract from both candidates' time equally; Bertram will explain the real thrust of it later) that I'm not entirely sure he's even clear why this is a great idea, but nonetheless, he looks thrilled with himself, which I can believe.