Mr. Spragg is under a financial strain. Mr. Dagonet has come to visit him at his office after Undine and Ralph’s engagement is announced. Mr. Dagonet explains the nature of Ralph’s position in society. Mr. Dagonet tells Mr. Spragg that Ralph does not have a job and will never have one. Mr. Dagonet will pay his grandson a stipend, but the amount is minimal—barely enough to cover the cost of two or more of Undine’s dresses. By the time Mr. Dagonet leaves the office, Mr. Spragg understands that he will have to continue supporting his daughter even after her marriage.

On top of this burden, Mr. Spragg learns that Undine wants to move her wedding date forward, meaning that instead of having months to prepare for the exorbitant affair, he has just a few weeks. Spragg thinks maybe he can suggest to Undine that she has chosen the wrong man once he tells her how little money Ralph has.

Spragg goes home and finds that despite the lack of income her future husband will have, Undine is unprepared to give up her plans. She wants to be married quickly and she wants Ralph and no one else. She says her father is accusing her of marrying for money. He does not understand, Undine says, that she is marrying Ralph for the people her marriage will allow her to associate with. The customs in New York are different from those in Apex, she tells him. If she breaks her engagement, she will be banned from New York society forever. If that were to happen, there would be no point in their having left Apex in the first place. She announces that if she is forced to break her engagement, she might as well be dead.

Mr. Spragg knows that his wife and his daughter always get what they want, no matter the circumstances. At the moment, he does not know how he will be able to afford the wedding as well as the allowance he will have to pay Undine, but he will try to find a way. Before Spragg goes back to his office, his wife tells him that Undine has seen Elmer Moffatt in town. Undine is afraid Moffatt might ruin her chances of marrying Ralph. At this, Spragg tells his wife his standard response: he will see what he can do.

As Spragg walks into his office building, Elmer Moffatt greets him. Without being invited, Moffatt follows Spragg up to his office. Once there, Moffatt proposes a business deal. Spragg used to be in the water business in Apex. In that role, he was involved with a politician named James J. Rolliver. Moffatt’s uncle is about to invest heavily in a transportation deal in Apex, and Moffatt believes Spragg could supply his uncle with valuable information about this politician. The details of this business situation are not fully explained, but Moffatt insinuates that if Spragg does not provide the information, Moffatt will divulge information about Undine that could destroy her chances of marrying Ralph Marvell. Just as Spragg is about to make a decision, Ralph shows up at Spragg’s office.