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Attempting to make peace in Atlantic City, Jimmy delivers the KKK members responsible for the death of Chalky's men, effectively ending the worker's strike. In addition, Jimmy tells Nucky he wants to make things right between them, so he gets rid of the new treasurer, Mr. Neery, after forcing him to write a fake suicide note that recants his testimony.
Ester Randolph's case against Nucky continues to fall apart when Nucky convinces Margaret to marry him. Due a lack of evidence and witness testimonies, Nucky's granted a mistrial. Then, Congress approves the new highway, which will make Nucky a very rich man. He tells Margaret he's going to turn over a new leaf, but is still troubled about how to deal with Jimmy.
In the end, Nucky lures Jimmy out to confront Horvitz, but it's a setup. Nucky shoots Jimmy repeatedly in the head and then tells Margaret Jimmy reenlisted in the Army. Margaret, suspicious of her new husband, signs over Nucky's valuable land deeds to the church.