Monica, Madame Flora's daughter, and Toby, a mute servant boy rescued from "the streets of Budapest" play dress-up. When Madame Flora, or "Baba" as they call her, arrives home drunk, she violently chastises them for not preparing for that night's seance. Soon the guests arrive, Mr. and Mrs. Gobineau, regulars, and the widow Mrs. Nolan who is attending for the first time. With Madame Flora in a trance in her chair, a fake seance is held where Mrs. Nolan speaks with what she thinks is her deceased sixteen-year-old daughter but is really Monica behind a screen. As Monica disappears, Mrs. Nolan rushes toward the figure and is restrained by the Gobineaus. When order is restored, Mr. and Mrs. Gobineau "communicate" with their deceased two-year-old son Mickey who does nothing but laugh. After they say goodbye to him, Madame Flora "suddenly, with a loud gasp... clutches at her throat with both hands." She feels a phantom hand clutching her throat and is "terror-stricken." After demanding that the guests leave, she calls for Monica and tells her what she felt, eventually blaming Toby who was in the other room the whole time. In an effort to calm Baba's drunken rage toward Toby, Monica sings her the dark lullaby "The Black Swan" which is interrupted by a voice that Baba hears causing her to fly into a terrified rage at Toby for not telling her where the voice is coming from. The act ends with Monica again singing the lullaby while Baba recites her Hail Marys.