Back at the sheriff's office, an officer gives a message to Jack that Mia Rizzo called, wanting to discuss work-card issues. Of course, Ralph is right there, and starts smirking about Mia calling to discuss work-card issues on Christmas Eve.
He brings Jack into the office and confronts him on getting involved with Mia. Jack cuts off any interference before Ralph really gets going, so Ralph asks about Pete Holm instead. Jack figures he all but confessed to killing Merrick, since he devoted his whole life to building another man's business. Ralph is still in the "Ginny did it" camp and doesn't buy Jack's "second-fiddle" theory, and Jack snarls that of course he wouldn't, and angrily stomps off. Ralph knows they're not talking about the case anymore.
Jack lays into him about keeping his ranch afloat while Ralph's struttin' his badge up and down Freemont Street, just like he did when Ralph was away at war. As you can imagine, Ralph's not pleased to be reminded of what he missed with his son and wife while he was away -- and Jack appears to regret his words as soon as he says them -- and stomps out.
Savino goes to see Diane in her dressing room, and she purrs that she knew he'd come eventually. He turns up the radio and starts dancing with her, feeling her up and kissing her -- clearly checking for a wire -- and even rips open her blouse. She's enjoying it, but once he's determined she's clean, he tells her he knows about the FBI, and just because she's not wearing a wire it doesn't mean she's not a rat. He wants her gone, and angrily gives her until morning to make herself scarce.
Jack's making a report on Pete Holm to Yvonne, despite Ralph's grousing that it's a waste of time, at least until Jack mentions an injury on Holm's right hand -- he winced when Jack shook it. This twigs with Ralph because Ginny had an injury on her left. They quickly deduce that the two of them stuffed Merrick into the cement mixer, using Yvonne as a prop as they walk through it. "This is exactly why I left my last job," she says, whatever that's supposed to mean.
Holm and Ginny, in Ralph's office together, deny the allegation, except Ginny blurts out a detail of the body's condition -- the fact that it was beaten before getting thrown into the mixer -- that only the cops and killer knew. "Nice work," grumbles Holm, as Ralph makes them put their hands on the desk, where he finds mirror-image wounds from a cement mixer blade on their wrists. Book 'em, boys!