His partners Lucky Luciano and Al Capone are frustrated by his inability to control his own territory and agree to split the shipment up to sell outside of Atlantic City. Jimmy is unable to sell his first shipment of diluted medicinal alcohol because of Nucky’s imported whiskey. Prosecutor Esther Randolph offers Eli a deal if he will testify against Nucky and continues to work with Nelson Van Alden to prepare her case for trial. Eli’s warning has the opposite effect to his intention and he is arrested for murder when the witness comes forward. Jimmy then attempts to negotiate an end to the strike with Chalky White but is unsuccessful. They are unsuccessful in ending the strike but do beat a key witness as a warning on Eli Thompson’s behalf. He is pressured into using strike breakers by his advisors. The ongoing African American workers strike has angered the hoteliers who pay him protection money. Jimmy Darmody faces further challenges to his leadership, several set in motion by Nucky. On his return they meet with Emily’s doctor and he tells them that her paralysis is likely to be permanent. While Nucky is away Margaret donates her savings and jewellery to the Catholic church to prove her devotion. After the meeting Teddy reveals that he saw Nucky burn down his father’s house.
In the city he is introduced to Bill Fallon by Arnold Rothstein and hires him as his defense attorney.
Teddy acts out, feeling neglected with Emily unwell and Nucky offers to take him to New York. Emily Schroeder waits for test results at the hospital and Margaret continues to blame her own sins for Emily’s illness. He fires his attorney and arranges to visit New York to hire a new lawyer.
He floods the city with the high quality, low cost whiskey but is deflated when he cannot get his trial moved back to town. Nucky Thompson makes a strong return to Atlantic City on the bootlegging front.