- Johnny-as-Kelly shows up at Lonnegan's hotel. He says his next bet with Lonnegan is going to be for 400,000 dollars and will pay out two million.
- Not impressed? In 1936 $400,000 was the equivalent of almost seven million in today's dollars. Two million was the equivalent of thirty-six million today.
- Lonnegan says he won't do it unless he knows how Johnny-as-Kelly's scheme works. Johnny-as-Kelly tells him he knows a guy at the local Western Union office who can hold up race results until he's had time to call Johnny-as-Kelly and tell him the winners.
- Lonnegan only gives Johnny-as-Kelly one thousand of the sixteen he won and keeps the rest. Then he says that he wants to meet Johnny-as-Kelly's partner and to place bets whenever he wants.
- This is the only way he's willing to stick with Johnny-as-Kelly's scheme.
- Next time we see Johnny, he's calling Twist and asking him if he can set up a phony Western Union office in the next day. Twist says it's going to be tough, but they'll figure something out.
- Before he can even hang up the phone, Johnny gets attacked by Detective Snyder. But with a clever move, he slips past Snyder and runs away. Snyder hops in his car and chases Johnny, who cuts into a train station and gives Snyder the slip.
- Back at Henry's place, Johnny explains his Snyder problem and Henry says they're going to have to do something about it. He then asks what else Johnny's been keeping from him and lets Johnny know that he (Henry) knows Lonnegan's men have been trying to kill him.
- Henry is worried that the whole scheme will blow up in his face because of the secrets Johnny has been keeping.