At a breakfast hosted by the chief, Furillo watches Howard win recipient of the year for "Mental Health" and Furillo's rival for commander, Chapel, makes subtle digs. The boorish chief chokes on his food after laughing too hard at his own coarse remark, and Furillo saves the day by performing the Heimlich on him. Back at the station, one of the new transfers, Ludwig, gets into it with Belker by making an anti-Semitic remark. Ludwig had a previous run-in with Belker which cost him one of his fingers. Bates finds Marv dead downstairs.
Furillo goes over to hear the testimony of Nemo Rodriguez to Davenport along with Lt. Schneider, who accuses Furillo of only bothering with the investigation of a 15 year-old prostitute because Furillo is up for the position of commander. When Nemo reveals that the man he had seen involved with the girl was McCauley, a city councilman, Schneider scoffs at the idea. Joyce informs Furillo that they need to stop seeing one another, fearful that a rumor might develop that would be devastating to both their careers.
Back at the station, everyone is ashamed to admit that they don't know the deceased man's (Marv"s) last name, except for Howard who swoops in and makes a pompous eulogy. LaRue pushes some life insurance on the guys to fund his dream business: a saloondromat.
Howard introduces Furillo to the latest hardware for Sniper Alley: an armored tank. Furillo won't even consider such a thing, and gets into an argument with Commander Swanson, who just happens to be there. Swanson warns him to let Schneider handle the homicide investigation if he values the idea of getting a promotion.
Washington and LaRue bust a guy selling cigarettes out of the back of his vehicle, and LaRue shows Henry the dilapidated building he dreams of for his saloondromat. Meanwhile, he gets Washington to help for the first down payment.
Councilman Macauley appears to have dropped off the face of the earth, and can't be found anywhere. Meanwhile, Grace convinces Phil to go to a nudist resort in Mexico. Ludwig antagonizes Belker, who nearly takes his other finger. Ludwig and Carmichael are identified as antagonizing Sniper Alley as well, and Furillo orders them transferred at once.
Fay's obscene caller strikes again, this time actually breaking into her home and stealing some of her underwear. Furillo helps her out again and tells her to bring Frank, Jr. over to his place for the night. Davenport calls his office and tells him to switch on the news, where McAuley and his wife along with their young daughter are being interviewed as having both been benefactors to the fifteen year-old prostitute. Schneider angrily asks Furillo if he's satisfied now.