Late at night, Johnny pulls up in a car and asks Terry what happened at the church. Terry lies, telling him that nothing was happening at the church.
But Johnny reveals that he's already discovered that Dugan talked to the cops.
Charley and Johnny warn Terry to stop hanging out with Edie, and then they plot to silence Dugan in some way.
Charley tells Terry to "wise up," and then leaves with Johnny.
The next day, at the waterfront, Johnny's henchmen rig up a fake accident to kill Dugan. He's helping the others load crates of whiskey, but the henchmen cause a bunch of crates to fall, crushing Dugan.
Over Dugan's dead body, Father Barry gives a speech, telling the other workers that every time a murder occurs or an injustice or a persecution, it's the same as Christ's crucifixion. He tells them that they're guilty of permitting it.
Some of Johnny's toadies throw things at Barry, hitting him. Terry punches one of them out, which Johnny's thugs notice.
Barry continues his speech, telling them that Christ is with them at every moment, and that what the gangsters running the union are doing is crucifying Christ all over again. He urges them to stand up, do something.
At night, Edie seeks Terry out on the apartment roofs.
When she finds him, she cries and embraces him. He kisses her.