The cruise ends in San Francisco, where Michael proposes to Elsa that he accept Grisby’s offer and use the money to elope with her. She declines his offer.
Grisby reveals that his plan is for an insurance scam: if either of the partners in the firm of Bannister & Grisby dies, the other stands to get a lucrative pay-out.
Next morning, in Grisby’s office Michael listens to part of the typed statement he must sign, admitting to killing Grisby. Grisby persuades him to go ahead on the basis that he, Grisby, will disappear and that in California a murderer cannot be convicted without a corpse.
The following day, Michael has a clandestine meeting with Elsa at the San Francisco aquarium, where he convinces her to go along with his plan. On reading a copy of the statement he has signed, she warns him that her husband is behind Grisby’s proposal and that it’s some kind of trap.
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