 With the discovery of Maddy Ferguson s dead body, Cooper, Truman, aided by Albert Rosenfeld, push their investigation into full-drive. Catherine, disguised once against as Mr. Tojamura, visits Ben in jail and tells him that she will give him his alibi if he signs the sawmill and the Ghostwood Developments over to her. Ben does, and not surprisingly, Catherine goes back on her word and leaves him without making a statement. Meanwhile, Leland/Bob learns about Laura s secret diary from Donna, who learns about Maddy s murder from Sheriff Truman. James does not take the news of Maddy s fate easily and hits the road on his motorcycle. Andy also learns about Lucy s tryst with the smug Dick Tremayne, and Lucy tells them that she s keeping her baby and will choose one of them to be the father. Norma continues to deal with her difficult mother who constantly criticizes and puts down her attempts to bond. Donna follows a lead from the late Harold Smith leading to a mysterious page from Laura s secret diary, and also discovers the appearance of a different Mrs. Tremond (not the old land and her grandson whom were apparent spirits). Cooper assembles all the suspects present at the Roadhouse where a flashback vision from Laura reveals the identity of the killer, and of Killer Bob.