 He runs into Lois, and she recognizes him as a former lover but promises not to tell Lilli.Bill is shocked to overhear this, but Lois tells him that even if she is involved with other men, she is faithful to him in her own way ("Always True to You in My Fashion").Lilli tries to explain to Howell that she is being forced to stay at the theatre by the gangsters, but Howell doesn't believe her and wants to discuss wedding plans.