- Back in Midge's apartment, Scottie asks her whether she knows any local authorities on San Francisco history. He's especially interested in people who know about unofficial history, urban legends.
- Midge mentions Pop Liebel, and together she and Scottie go to visit Pop's bookstore downtown.
- Scottie won't tell Midge what he's trying to find out, even though she's dying to know.
- At Pop Liebel's, Scottie and Midge hear Carlotta's story: a rich and powerful man loved Carlotta but never married her. She bore his child, but he "threw her away," which drove her mad and led her to kill herself.
- Scottie still won't tell Midge what's up, but she guesses his secret.