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Kaethe Gregorovius is no friend of Nicole. Nicole snubs her constantly. Kaethe tells Franz that Nicole’s illness is a put on and she uses it for power. She also says that Dick married Nicole for money. Franz cautions her against this talk.
When Dick gets back she complains that he’s been on a bender, and Franz tries to rationalize his appearance. She complains Dick’s stinks of booze, too.
She says Dick has lost it. Even though Franz protests, he comes to believe it too.