- Some dude named Ike reads a play at the Council of American Writers. and it's terrible.
- But everyone praises it. Of course.
- Toohey's council (who else would start a group like this?) has become the new literary elite.
- The group is filled with a bunch of tortured artists who complain about everything.
- Keating is there feeling depressed. His wifey is long gone.
- Later Toohey comes out in praise of modern architecture as a style.
- The change hurts Keating, who used classical influences in his work.
- Keating asks Toohey what exactly happened to his devotion to classical influences, but Toohey gives him some lame platitudes and sends Keating on his way.
- Keating gives a luncheon talk later and says that he designs for the public, so if people want modern stuff, he can do that.
- Keating then essentially offers to do the public's laundry and take out the trash if they'll give him a project.
- Francon retires, and Keating hires Neil Dumont as a partner, but he's not very good.
- The firm starts to lose money.