Margaret is unwilling to punish Henry for his past transgressions, committed long before they met. Helen leaves for Europe without explanation, only returning when tragedy strikes.

In the Spring of 1905 the Schlegel family are drawn into the affairs of the Wilcox family via Helen Schlegel who has fallen for Paul Wilcox. Helen's older sister Margaret gets involved in a mix-up at a concert.

The Wilcoxes are rocked by a death in the family and the Schlegels face an uncertain future when they are evicted from their home.

Searching for a new home, Margaret receives an offer of marriage from Henry. Helen is distraught to learn that Leonard Bast is on the brink of ruin after following the advice of the Schlegels'.