General von Werben is at work in his study, Aunt Sidonie is working on her book on Court Etiquette, Ottomar has not returned from drill, Else is reading Mieting's letters--one saying that Mieting will fall in love with Reinhold if Else does not want him, and that she is coming to make conquest; the second that Mieting has misunderstood Else's letter at the first reading, and having re-read it, is not coming. Sidonie and Else discuss the question of inviting Reinhold to the ball, and decide that Ottomar is to deliver the invitation in person. Else is worried at Ottomar's disturbed state of mind, and charges him with not loving Carla. Ottomar admits that he intends to marry Carla for her five thousand income, and taunts Else with having acquired her wisdom in love matters from Count Golm. Else resents this, and then tells Ottomar that his father wishes him to deliver the invitation. Ottomar demurs, and, going to his room, finds a letter on the table from his father, saying that he has paid twelve hundred thaler of Ottomar's debts--the last he will pay. Reinhold tries to change Uncle Ernst's attitude toward his socialistic workmen. Kreisel comes in to tell Uncle Ernst that he is going to his own funeral, and to ask for his discharge, for he too is a socialist. Philip interviews his father in the interests of the railroad, offering to buy out his plant, but, meeting with a rebuff, goes away. Cilli asks Reinhold how Uncle Ernst received her father's resignation, and then gives Reinhold an account of her blindness. Philip finds Reinhold with Cilli and accuses him with strengthening Uncle Ernst's prejudice against the railroad. Ottomar comes in to give Reinhold the invitation to the ball, and then views the work in the studio. Philip tells Justus that he will have half a street to his credit for his sculpture. Ottomar seizes an opportunity to kiss Ferdinande and make an appointment with her in the Bellevue Garden at eight o'clock. Antonio enters and takes in the situation. Ferdinande tells Aunt Rikchen that she is to take supper with Miss Marfolk, a painter, to meet Professor Seefeld of Karlsruhe. Reinhold prepares to go to the Werben ball. Aunt Rikchen suggests to Ferdinande that she marry Reinhold herself, greatly to her astonishment. Antonio heightens the embarrassment by coming to give Ferdinande the lesson, which was to come on the following morning. Ferdinande sends him off, takes a cab to the Grosser Stern, while Antonio follows her in another cab. Ottomar, clad as a civilian, meets Ferdinande at the Grosser Stern.] * * * * *