Ben Horne's brother, Jerry, arrives in Twin Peaks; James and Donna decide to be together; Ben & Jerry travel to One Eyed Jacks and meet with its madam, Blackie O'Rielly; Audrey leaves a clue for Cooper; Deputy Hawk finds a bloody towel near the crime scene; Cooper demonstrates a unique deductive technique; The cynical Special Agent Albert Rosenfield arrives to examine the body of Laura Palmer; Josie discovers Catherine has been keeping two ledgers; Leo takes his anger out on Shelly; Agent Cooper has a mysterious dream about the crime.
