The former are allied to ex-boss and current city councilman Masaichi Tomoyasu; the latter have an alliance with the local police force.
After Ohara men raid one of Tomoyasu's bars for a hostess who worked for Hirotani before changing patrons and assigning the blame on a selected Ohara member, Detective Tokomatsu Kuno obtains information on an illegal land auction deal involving the Kawade, Tomoyasu, and the local oil company, Nikko Oil.
He offers to sell it back to Nikko Oil executive Kubo for a price, but the latter refuses.
Elsewhere, Ohara members and their police friends get into a fight with a truck driver, who is revealed to have been working for Kawade.
With the war in full swing, Kawade, Tomoyasu, and Kubo meet with Police Commissioner Kikkuchi.
Kikkuchi has crusading Lieutenant Shoichi Kaida assigned to lead the crackdown against the Ohara family.
Kaida sets about ordering the officers - Kuno included - to stop fraternizing with the yakuza, and makes his point by smashing bottles of sake Hirotani had sent to the police one night.
If he refuses, he will leave and threaten to expose the corrupt officers in the police force, himself included.