On 25 Oct 1958, at a gathering entitled 'A Salute to Edward R Murrow', Ed Murrow delivers a speech where he mentions Senator McCarthy among others. The film then reverts to October 14, 1953, in the CBS Studios, with on-screen titles explaining that McCarthy has claimed that there are over 200 Communists in the US government.
Fred Friendly and the news team discuss the latest news stories for the forthcoming episodes, and Murrow declares that he wants to go after the American military, who have tried and convicted a member of the Air Force, Milo Radulovich, because his sister and father have been accused of being communist sympathizers. Murrow mentions that the charges against Radulovich were in a sealed envelope and that nobody saw them, suggesting that they investigate the story to see if it is worth covering.
Five days later Friendly, Murrow, and Mickelson, CBS director, watch footage of Wershba interviewing Milo Radulovich; Mickelson criticizes the report as being unbalanced and accuses the reporter of editorializing. Military men come to Friendly's office, attempting to persuade him not to broadcast the story, but CBS goes ahead and the segment features on Murrow's show See It Now. The focus of the news team shifts to going after McCarthy himself. In one clip, McCarthy accuses a man who was provided with an attorney by the American Civil Liberties Union (ACLU) in 1932 of being a communist.
During the segment on McCarthy, Murrow personally invites the Senator on the show to defend the claims made about his corrupt influence. As the story continues, Murrow challenges McCarthy's questioning techniques, and the untruths he espouses in his hearings. Murrow notes that the ACLU is not on the list that McCarthy claims it to be, and that it has in fact been commended by several US presidents.
Shirley reads out mostly favorable reports from the newspaper, but one journalist, O'Brien, accuses Hollenbeck, a CBS journalist, of being a "pinko", meaning a communist sympathizer. The team is informed that the Air Force has reinstated the wrongfully terminated Radulovich.
McCarthy appears on the show on April 6, 1954, and addresses the camera directly without interruption, accusing Murrow of being a communist, something that Murrow suspected would happen. In the proceeding show, Murrow gives his response, where he unequivocally denies the accusation that he was a member of the Communist party and highlights that anyone who criticizes or opposes Senator McCarthy's methods is accused of being a communist. From this point on, the tide turns on McCarthy and he himself is investigated, due to charges the Army has made against him and his Operation. John Aaron later announces this in the newsroom, but the celebration is cut short when a phone call to Friendly informs the news team that Hollenbeck has committed suicide by gassing himself.
We see footage of the Army-McCarthy hearings, where a lawyer questions McCarthy's sense of decency. Shortly after, CBS chief executive Paley speaks with Murrow and Friendly in his office and tells them they have lost one of their major sponsors, and as a result, he will only give them five more one-hour episodes, and also move their slot from Tuesday night to Sunday afternoon. Paley speaks to Friendly privately and informs him that he needs to fire some people.
The film ends with Murrow finishing his speech from the opening scene, extolling the importance of ideas and information. Murrow concludes his speech with his iconic catchphrase "Good night, and good luck."
