As Arthur continues his secret courtship of Alice (he never talks about her nor tells anyone where he spends his evenings), Alice continues spinning a web of lies to preserve the image of herself and her family that she has invented. This becomes especially difficult when she and Arthur encounter Walter in a bad part of town, walking with a young woman who gives the appearance of being a prostitute. At home, Walter is confronted by his father, who demands that Walter quit Lamb's to help in setting up the glue factory. Walter refuses to help his father without a $300 cash advance, which Virgil cannot afford.