The episode begins and some guys are changing a tire while a man named Gyp Rosetti gets tired of waiting. A stranger comes up and offers to help loosen a rusted lug with some "3-in-1". When Rosetti asks, "What's that?" the guy bluntly replies, "Oil; what else?" Things seem fine and they wish each other a nice day. As the man walks away, though, Rosetti sneaks up behind him and clubs him in the back of the head with the tire iron. He bludgeons the guy quite clearly to death, all while shouting, "What else could it be? Could be this? Or maybe it could be this?" and continuing to curse the man while swinging the iron at his head. A boy brings a coffee delivery to what appears to be a heavily protected hideout where Slater,
Micky Doyle and Nucky Thompson are waiting. Nucky is talking to a bound man in a chair who says his name is Nate. Nucky runs through the details of a theft at one of his warehouses, where Doyle was supposed to be standing guard. It soon becomes clear that Nucky is more annoyed with Doyle than he is with Nate, because Nate was only doing his job. Doyle, clearly, was not. Nate is pleased when Nucky tells Manny to untie him. He's not so pleased when Nucky adds, "Oh, but before you do, put a bullet in his head". Manny does the deed. At the Commodore's house, Gillian is writing a check to the coal company under Jimmy's name. She's running a meeting of the Artemis club and tells the gathered ladies to resist the urge to partake in drinking and remember why they're there.
Richard Harrow comes into the room chasing Tommy, and Gillian briefly introduces him as a war veteran. One of the ladies seems to take interest. Back in Chicago, Johnny Torrio, Al Capone and another man are counting money when a man named Dean O'Banion pays a visit. Torrio and Capone tell O'Banion he's encroaching on their territory, which he denies. Al then says it's his New Year's resolution keep calm. A moment later, after Torrio's gone, Al says he's "gonna see" O'Banion later. The other man asks him about his resolution and Al says, "Well, New Year's ain't 'til midnight". Harry Daugherty pays a visit for a meeting. Nucky suggests to Harry that the president's administration is under some heat. He asks everyone to leave the room and Nucky and Harry start getting into the real stuff.
Nucky is upset that he's paying $40,000 a month for protection and things seem to be spinning out of control. Harry warns Nucky that given what he's up to he's better off not throw rocks from his glass house. Harry tells Nucky that he's going to be taking his payments in cash through a new middle man who will be in touch. Harry notices a Carrie Duncan headline in the paper and asks Nucky what he thinks of her. "That she should spread her legs and leave spreading the wings to her husband," Nucky replies. Margaret is touring the new pediatric annex to the hospital she and Nucky funded. A woman walks in asking faintly for help. Blood falls from between her legs and she collapses. The tour continues, but Margaret is stunned. Harrow is at a carnival blowing people's minds with his shooting at a carnival game.
Tommy asks a little about his mother, and Harrow realizes Tommy is referring to Gillian and not Angela. At the hospital, Margaret asks a doctor about the woman he saw. The doctor says she miscarried and adds that her baby's death could have been prevented if someone had told her to avoid raw milk. Nucky drops by the warehouse to visit Doyle and Manny. Slater and Nucky give Manny the name of Roland Smith the driver in the warehouse robbery that Nate was killed for earlier. The man's hiding outside Philly. Nucky tells Manny to spare him the interrogation and leave the body as a message to anyone else who'd like to consider stealing from him. Manny isn't wild about the assignment because his wife makes a nice dinner for New Year's. He agrees to do it, though, when Nucky agrees to let him have his own operation.
Manny vows that in three months he'll be lining Nucky's pockets with money. Slater simply reminds him to make sure Roland Smith is dead before tomorrow. Nucky and Margaret's Egypt-themed New Year's party is raging. Eddie Cantor shows up with singer Billie Kent, who impresses Nucky with her flair. Al Capone pays a visit to O'Banion's flower shop. Just as things are starting to get heated, in walks Van Alden for selling his goods. O'Banion pretends Van Alden is an employee who was supposed to have arrived a while ago and tells him "we've got company". O'Banion tells Al that he'd better watch it unless he wants a taste of what's in Van Alden's briefcase.
Van Alden holds it up and unlocks it menacingly. Al and his man leave. O'Banion locks the door and tells Van Alden he doesn't know who he is but he just made a pal. At Nucky's party, Nucky seems quietly taken by Billie Kent as she sings with Eddie Cantor. Rosetti starts to talk business with Nucky and Eddie Cantor interrupts to tell Nucky that Cleopatra requests his presence. Rosetti is annoyed at being interrupted. Nucky tells him to relax and pinches his cheek. Nucky goes to make the toast and everyone cheers while Rosetti simply glares. Margaret talks to Dr. Landau, who was leading the hospital tour, about the prenatal care idea. She says she was talking to a doctor about it, and Landau asks her which doctor.
She says she doesn't remember and says it was an older doctor. Nucky walks over and Landau tells him Margaret was lecturing him about how the hospital was somehow complicit in the woman's miscarriage. Gillian talks to Harrow and asks him if he likes living at the house. He says yes, and she asks him to stop filling Tommy's head with stories. Rothstein, Rosetti, Luciano, Lansky, Remus and another man are sitting at a table in Nucky's basement. Rosetti starts talking business again, but Nucky tells him he won't be selling alcohol anymore because "things have changed". He says he's got well-placed friends and needs to keep things simple, so he'll only be selling to one person: Rothstein. If anyone wants, they can buy from him. Rosetti is annoyed, saying there'll be a 50 percent mark-up.
Rothstein invites Rosetti to buy from Brooklyn. "New year, new rules," Nucky says. Rosetti is not happy at all. He insults everyone in the place, last and most forcefully Nucky. Rosetti ends it all by saying, "Nobody here can take a joke," and walking out. On his way out through the party, Rosetti sees Margaret and hands her the dog. "For your kids," he says, after thanking her for a lovely evening. Nucky and Slater see this and are a little confused. Manny toasts with his wife and she tells him she's getting changed for bed. He goes and gets his gun. Van Alden comes home and Sigrid is there, holding their baby boy. Abigail has a cold. Van Alden tells Sigrid he lost the contest. She says next year will be better. He tells her the flowers are for her.
As soon as the last guest leaves, Nucky yells at Margaret for putting him in the middle of whatever cause she's working on this time. He reminds her that his name is on that hospital and she adds that hers is, as well. She tells him not to pretend he doesn't enjoy "playing the benefactor," and he says she made him a benefactor by giving that land away, that he had no choice. Nucky then gets his coat and prepares to leave. Margaret tells him the bishop's office called and they need an answer regarding the St. Gregory Award. Nucky says he'll think about it and adds, "Happy New Year." He leaves. Manny prepares to leave and his wife brings him a gift. It's "a new hat, for a new year."
The car outside honks and Manny shouts that he's coming. He tells his wife not to wait up. Manny opens the door and sees Harrow, who points a shotgun at Manny's head and fires squarely at Manny's left eye, spraying blood all over Manny's entry way. As Harrow walks away, we see that Manny's driver has also been shot in the head. Margaret lays in bed alone and can't sleep. She turns on the light and reads the story about Carrie Duncan's cross-country flight. Nucky is at his office, pours himself a drink and puts his gun in his desk drawer. He holds his hand, which seems to be hurting a little.
Nucky goes to his bedroom and finds Billie Kent laying topless and waiting for him. She asks him if he enjoyed himself. He says he's "never had so much fun pretending I didn't know someone". They hook up. Early the next morning, Margaret is shown walking out to the beach. Some other people are there, as well. They're all waiting to see Carrie Duncan's plane, which was set to take off from nearby Cape May. Some of the others cheer Duncan on, wishing her luck. Margaret says nothing, but looks almost equally sad and happy as she watches Duncan's plane fade into the distance. The episode ends at this point.