Adams tells Jarry not to refer to him as a friend, and Jarry continues, saying that those who DO take it up the ass probably do so to advance their own interests. Huh. That's one way to think about it.
Al is still playing the suave cool guy, and suggests that Adams "calm the fuck down." Adams fires another round, getting all uppity and causing Al to give him a look like maybe he needs to take it down a peg, or seven, especially when Adams goes overboard and suggests that maybe Al takes it up the ass. Hey, now. Al takes a lot of things, and in a lot of places, but the only thing up his ass so far has been Dolly's thumb. As far as we know. Al gets out the whiskey, and demands that Adams tell Jarry what Bullock was having him do in Montana (which would be...nothing). Sweet. Al is the master of the flim-flam.
Doc outside his cabin, looking in to see Martha Bullock still hunched over her dying son, Bullock standing in the background. He decides not to go in and interrupt them, instead telling Jewel, who is at her Trixie-appointed post, that she's to come get him back at the Chez Amie if there's any change. "I'll be operatin' on a whale," he says.
Back in Al's office, Adams has apparently laid out his trumped-up story to Jarry about meeting with the Montana officials, at Bullock's request. Now, it seems, Jarry ain't buying it. Adams is enjoying his little acting assignment, and throws on a little sauce. "I sit here, right," he says to Al, "and he calls me a FUCKIN' liar?!" Jarry says that no one is calling him a liar (even though he totally is), it's just that the idea that this unnamed official would conduct his territory's business from the back of a restaurant -- "the Stonehouse!" Adams interjects -- with a bag over his head lacks credibility.
"I won't pretend it didn't strike me strange," Al agrees, giving a fake shrug. The details come out: allegedly, this bagged individual told Adams, in anonymity (the bag), that Montana wants to annex Deadwood and will pay $50,000 bounty for allegiance from the camp's key players. What is soon revealed, and what is the most incredible facet of this scene, is that it's not the whole awesome BAG thing that Jarry doesn't believe. NO! It seems he actually BELIEVES the story. His only concern is that the guy in the bag may have been Clark, the main Montana official, himself. The look on Al's face when he realizes this scheme is coming across is so beautiful, I wish I could somehow print it and frame it and hang it in my office.