Marcus opens his club, the Manhattan, managed by Stephen, who offers Clive permanent bar-work. Ruth is left behind at the Grand with John whilst Marcus makes up to Sarah, and the club is raided, a publicity stunt arranged by Marcus. Ruth's formidable grand-mother, Mrs. Crawford, installs herself in the hotel, telling Marcus a few home truths and making arrangements for Ruth's pregnancy. Esmee gets close to Jacob Collins and he confides in her that he saw Sarah and Marcus kissing. She advises him to say nothing but he lets it slip to Sarah and is rebuked for his pains...Mrs. Harvey moves into the Grand to solve her money problems and discovers who Edith really is. Jacob has already told Esmee. Kate takes Stephen to see her parents but her father , who knows that the Manhattan club has prostitutes, is hostile to him. Stephen, in turn, delivers some home truths to Marcus on the morning of the christening and Marcus, a happy man because of his 'son',promises to mend his ways. Mrs. Harvey believes the christening is a sham and returns the baby to Edith but she is caught and Ruth is forced to come clean...
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