Virgil arranges to resign from Lamb's employ without speaking to him face-to-face because he fears the old man's reaction, and puts the glue factory into operation. Meanwhile, Alice works frantically to convince Arthur that the things other people will say about her won't be true, and continues to press the point even when Arthur insists that no one has spoken about her behind her back and that nothing anyone else could say would change his opinion of her. Mrs. Adams decides to arrange a dinner so that Arthur can meet the family, and sets about planning an elaborate meal and hiring servants for the day, so that Arthur will be impressed. Walter again demands cash from his father (the amount has now risen to $350) without explaining why he needs it, and he again is rebuffed. While these events occur at the Adams house, Arthur finally overhears things about Alice, which strikes a chord, and her family, including the fact that Virgil Adams has "stolen" from J.A. Lamb in setting up a factory with Lamb's secret recipe for glue.