Dr. Masters becomes disturbed when a telephone man comes to investigate the faulty phone system at the institution. Mrs. Callingham's tongue is ripped out of her mouth during her sleep, although Dr. Masters tells Charlotte that Mrs. Callingham did it to herself. The audience later discovers that Dr. Masters is actually a patient at the institute and that Dr. Stephens had allowed her to pretend to be a doctor. Dr. Masters burns the Sergeant's hand after he disobeys her, and murders Jennifer for stealing medicine. After a frantic conversation with Allyson, Charlotte discovers Dr. Masters' secret. Mrs. Callingham indicates to Charlotte that it was Masters who cut out her tongue, apparently to prevent the elderly woman from disclosing the secret. Charlotte then discovers the body of the telephone man in the kitchen closet, presumably murdered by Masters to make sure he would not report the institution's situation to anyone on the outside. Allyson is distraught, as she thought the man was going to marry her, but she convinces herself that the man is still alive and drags his body to her room so she can have sex with it.