James Taggart wants to celebrate. In several weeks, Argentina will be declared a People's State. Taggart has helped bring to fruition a deal between American, Argentinean, and Chilean politicians, whereby all the holdings of d'Anconia Copper in those South American countries will be nationalized. The politicians have set up a new corporation to manage all the industrial properties of South America. Taggart will sell his shares of d'Anconia Copper and buy stock in the new company, which will earn him a fortune.
However, Cherryl refuses to celebrate such a victory. In the year since her wedding to Jim, she has discovered the truth about him and is tortured by the question of why he married her. Cherryl, disgusted by her husband's desire to break Francisco's spine, leaves their apartment. Later, Lillian Rearden arrives. She pleads with Taggart to use his political pull to prevent her impending divorce from Rearden, which will cut her off without a penny. But Taggart has no power to prevent the divorce. In an attempt to hurt her husband one last time while she is still Mrs. Rearden, Lillian has sex with Taggart.
Cherryl returns home and knows that her husband has been unfaithful. Taggart tells her that he'll never grant her a divorce; he'll use his connections to prevent one, so Cherryl is stuck with him for life. In the ensuing argument, his motive for marrying her becomes clear. Cherryl understands that her husband is a killer who thrives on crippling people's spirits. She races blindly out of their home and into the street. A social worker accosts her and preaches that her despair is caused by selfishness. This encounter is the last straw for Cherryl, who throws herself into the river and drowns.
