Smith asks if anyone's heard from Paul, the implication being that the situation in Mississippi is getting out of hand, and Harry sighs that stirring up trouble like that is bad for business, as it gives people a reason not to watch television. Doesn't sound like Loretta Young is helping, either. Smith rats Smeeth out for not even having a TV, so Smeeth has to explain what he likes to do in his spare time -- concerts and going to the park, for example. He doesn't mention if he sucks dick at these events or prefers to keep that activity separate, but there will be plenty of time to parse that later, I'm sure. Ken gets testy about the fact that they're not working at all, but Peggy tells him that short of Right Guard coming out with a product exclusively for women, they need more time and research. "And lunch." Everyone heads out except Peggy and Smeeth, who linger to talk about Bob Dylan, whom Smeeth has seen live. Peggy expresses interest in going, and Smeeth invites her to accompany him. Peggy doesn't want to impose, but Smeeth does a reasonable impression of someone charming, and she accepts. Her mother, being such a strict Catholic, probably wouldn't approve, but she'd at least be secretly happy there's no chance of her getting pregnant again.
Los Angeles. As people swim in the hotel pool, Don stands by in full suit and hat, watching and smoking like a detective in a murder mystery. This isn't L.A. Confidential, Don. Take off your tie and stay awhile. "Misirlou" kicks up, evoking an Arabian Nights-esque feeling, and then Pete appears, smiling that this is why he booked them to come a day early. They discuss the fact that TWA lost Don's luggage, and while that excuses his attire at the moment, I'm a bit disbelieving that the best TWA is willing to do is buy him a new suitcase, given that he flew first class. I'd think they'd at least steal some cabana-wear from unsuspecting coach passengers and toss them Don's way. Pete declares his intention to hit the pool, but Don sets him straight, saying that rather than be the hundredth person to shake someone's hand at the convention, he should spend the day making preliminary contact with some well-chosen targets. Pete tries to get Don to ease up, prompting this reply: "You want to be on vacation, Pete? 'Cause I can make that happen." Pete and his lower lip think, "If I'd known it was going to be like this, I would have scored some points by bringing the wife."