Rejected by Hammond, Blanche becomes a slovenly alcoholic who does nothing all day long. While Hammond is on a business trip alone, Blanche discovers Ellen is pregnant. Correctly assuming the baby is Hammond's, Blanche beats Ellen. Ellen flees, but falls down some stairs, and miscarries. Hammond (who had promised Ellen that her baby would be freed), returns to Falconhurst and discovers Ellen lost the baby. Threatened with bodily harm by Warren, Ellen does not tell him how she miscarried. Hammond gives Ellen a pair of ruby earrings, which she wears while serving an evening meal. Hammond gave the matching necklace to Blanche, who becomes enraged to find Ellen being publicly favored by Hammond.