She agrees on a contract of 500 crowns and descends to her carriage to await Mr. Angel, while he supposedly completes the deal. Miss Silverpeal, a lovely, young protege arrives. She had been waiting impatiently for Mr. Angel to summon her from below. He has vowed to secure her a contract as well. She sings an aria of adoration , then demands a contract of 750 crowns.
Angel interjects before Scruples can disagree.
Madame Goldentrill returns to overhear the agreement, is furious, and a fierce duet begins, each arguing her position as the true prima donna. A trio ensues in which Mr. Angel tries to soothe them and mediate their dispute by offering them 1000 crowns a week, star billing, and their names in print larger than even the composer's. He insists that criticism of one artist by another can only degrade art. Meanwhile, Scruples is apathetic to the entire scenario. He states that opera can never be destroyed by individual ambition, then promptly assigns Mr. Bluff as the new impresario and departs.