In early October, Mrs. Carnegie and Andrew attend an opera performance at the Academy of Music, where New York’s social elite have gathered. While the Carnegies enjoy the music, Clara is banished to a bench outside the auditorium chamber along with the other servants. During intermission, she overhears other ladies’ maids gossiping about Mrs. Carnegie’s unfashionable attire. She has apparently violated some arcane rule about sleeve length set by the Knickerbocker ladies. The Knickerbockers are the highest level of the social elite and come from old Dutch families. They keep to themselves and have their own secret mandates about fashion and etiquette.

By late November, Clara is aware that the Carnegies haven’t broken through the barrier of New York high society, though Mrs. Carnegie is still oblivious to this fact. By prearrangement, Clara and Andrew frequently meet at a park near the hotel to discuss their business transactions. One day, they get into a disagreement about financing for the Western railroad projects. Andrew wants to find investors in New York, while Clara thinks he should source his funds locally. Clara speculates that Andrew is seeking New York investors as a way of gaining access to Knickerbocker society.

Clara points out how undemocratic the Knickerbockers are and that their views run contrary to everything that Andrew believes.