There's Pete—in a saloon, no less, but now he's a customer. He is a fine mess, drunk and buying drinks for a group of female hangers-on who are clearly using him. The waiter is disgusted by the drunken scene, which is saying something, since he's seen it all.
Nellie—she of "brilliance and audacity" fame—is there. Pete tells her over and over that he's "stuck on" (18.49) her, but she leaves him to his pathetic stupor. Not before she takes his last dollars, though. Pete has sunk low in his own low-sinking way.
The scene ends with Pete passed out on the floor, red wine dripping from the table down onto his neck.