George Anderson informs his employer, Leslie Harrington, that he is returning to the insurance business. Leslie tries to convince George to stay on at the mill until his business is established, but George refuses. Rossi wonders if Constance was uneasy during their first date because of him or the legend of the cottage. She agrees to a second date. Allison, pleased over her mother's progressing relationship, uses her savings to buy an expensive coat for Constance, who had earlier settled on a more practical purchase. Suspicious of Betty's pregnancy, Catherine conspires with old friend Dr. Morton. Uncovering the truth about Betty's miscarriage, Morton confronts Rossi, who threatens to take the matter to the medical board if Morton reveals privileged information. Morton reminds the younger doctor that he has been practicing medicine in Peyton Place for many years---and that Rossi is the outsider.