Elizabeth tells Dunwoody, who is playing an increasingly important role in the company, that she plans to go away for a holiday and that they need to discuss his salary and position. In an attempt to save their marriage, Daniel asks Elizabeth to go horse riding with him. She declines only to change her mind and return home to find Daniel on the telephone telling his mistress, Angela Taplow, not to call him at his house. Captain Burgess looks for Baines with a bottle of whiskey but finds James instead and they discuss business over a glass or two. James points out that Burgess' ship has been impounded and offers a partnership to pay off the debts on his steamer, the "Black Pearl".