With thunder, lightning, and trumpets J. Bowden Hapgood appears and asks for directions to The Cookie Jar and is on his way. Dr. Detmold, the psychiatrist from the asylum, arrives but cannot differentiate between Cookies and Pilgrims. He refers the city administrators to his new assistant who is due to arrive at any moment. Hapgood is back and Detmold mistakes Hapgood for the new assistant. Zany exchanges between Hapgood, Schub, and the Mayoress lead to a bit of dancing, a bit of misunderstanding, and a bit of confusion in rapid order.
Utter confusion reigns.
Hapgood, in his interrogation, exposes Macgruder and Cooley and Schub as frauds and by a process of deduction labels them as the crazy ones. Everyone on stage is cheering and closing in on Cora who is tossed about like a rag doll. Then, as the number ends, except for a spotlight on Hapgood, the stage is dark. And suddenly as though a huge mirror had descended, all the Pilgrims and Cookies are seated in rows of theatre seats facing and applauding the audience as the curtain falls on Act One. Schub makes a quick exit.