Dave announces that he will have to quit his job because he cannot find a residence for his family. Kathy owns a vacant cottage in Darien, but though Phil sees it as the obvious solution to Dave's problem, Kathy is unwilling to offend her neighbors by renting it to a Jewish family. She and Phil break their engagement. Phil announces that he will be moving away from New York when his article is published. When it comes out, it is very well received by the magazine staff.