What happens when Armpit witnesses an interrogation of X-Ray?

Armpit is shown into a room with a two way mirror. He is surprised to see the suspect is X-Ray. At first X-Ray tries to lie his way out of having worked with someone to get the twelve tickets and denies all knowledge of anybody named Armpit. When confronted by Newburg's knowledge of the trip to Murdock's restaurant, X-Ray tells her that he met a guy nicknamed Armpit through another guy named Felix, who stood with him in line and helped him buy the twelve tickets. X-Ray says that Felix, whose real name is Habib, insisted on a half share of the profits.