"Trust no one"
Gyp Rosetti, a volatile New York gangster, has car trouble along a deserted stretch of highway en route to Atlantic City. Interpreting a Good Samaritan's offer of assistance as an insult to his intelligence, Gyp savagely beats him to death with a tire iron and takes the man's dog Regina.
Meanwhile, Nucky interrogates a young man who has stolen liquor from Mickey Doyle's warehouse. First putting him at ease, once the boy reveals his accomplice - Rowland Smith -- Nucky orders Manny Horvitz to put a bullet in his head. Later, Nucky promises Horvitz (a lesser partner in Mickey Doyle's operation), his own still as a reward for tracking and killing Rowland Smith.
In Chicago, Johnny Torrio meets with North Side boss Dean O'Banion to settle a dispute over territory before embarking on a long trip to Italy. The situation worsens when Al Capone doubts O'Banion. When O'Banion asks if Capone is deaf to his claims of innocence, Capone reacts violently. Torrio tells him he has a deaf son -information O'Banion uses again as he leaves, telling Capone to wave to Sonny for him, since he can't hear "hello." Torrio restrains a livid Capone, warning him not to start a war in his absence. Capone makes a New Year's resolution to behave, but once Torrio leaves, he tells Jake Guzik, a bootlegger working for Torrio, his plans to assault O'Banion, explaining: "New Year's ain't ‘til midnight."