The conventioneers booze it up back at Caul's workshop. Perhaps loosened up by the alcohol Caul uncharacteristically shares private thoughts with Meredith, the convention hostess (Elizabeth MacRae). When his rival Bernie, using a planted microphone, jokingly plays it back for all to hear, Caul is furious and throws everyone but Meredith out. She offers him solace and more as they end up spending the night together.
Then ... Caul's concerns over the fate of his surveillance target, the Director's two-timing young wife, gnaw away at him even as he sleeps and in a dream he finds himself following her to a park to warn her.
... and Now, this is the southeast corner of Alta Plaza Park in Pacific Heights (map) where a series of four stairways lead up to the tennis courts. The Director's wife was on the street level stairway accessed from Steiner Street. (Coppola's use of oily smoke generators in this scene created a backlash amongst the surrounding residents forcing him to prematurely curtail the original scheduled shoot).
Then ... She runs up the second stairway - the offset third and fourth are also visible successively climbing the hill towards the tennis court fence at the top.
... and Now, the steps and the tennis courts are still there.
Then ... He runs after her, pausing below the second stairway, offering as an excuse an outpouring of his childhood problems.
... and Now, the matching view looks down to the corner of Steiner and Clay.
Then ... He shouts his warning - "... He'll kill you if he gets the chance ..." then, " ... I'm not afraid of death ..." and after a reflective pause, "... I am afraid of murder ". Across Steiner Steet behind him we can just make out, at far left, the windows of 2310 Steiner.
... and Now, absent the smoke there's a much clearer view of the shingled exterior of number 2310.
Now he imagines the Director attacking his terrified wife ...
... then wakes up to find Meredith and his surveillance tapes gone. So all along she had been on the Director's payroll to head off the chance that the incriminating tapes might end up in the wrong hands. Caul's reaction was understandable ... "Bitch!".