One of their coworkers, Sally Aiken, gives Woodward and Berstein a tip. Ken Clawsen, who worked at the White House as deputy director of communications, had told her over drinks that he had written the "Canuck letter" (a falsified letter insinuated that Edmund Muskie, a Nixon opponent, insulted French Canadians and made Muskie's wife seem like a drunk) and bragged about it. This matches up with Segretti's tactic of sabotaging opponents.
Woodward then calls Clawsen to confirm the story. Clawsen is panicked at the accusation, though he is more concerned about it getting out that he had a drink with Aiken and being accused of infidelity towards his wife than anything else. Clawsen then calls Bradlee, repeating that he has a wife and a family and a cat and a dog. Bradlee plays the situation well, leveraging the fact that he was over at Sally Aiken's apartment.
The story is then run about Nixon aides sabotaging Democrats. The White House flatly denies it.
Woodward and Bernstein have worked out that the CREEP slush fund was managed by Stans, Macgruder, Mitchell, Kalmbach...and who else? They go to Sloan's house to speak to Sloan. Sloan confirms that Haldeman is the final person. Woodward and Bernstein return to the Post. Sloan confirmed this to the grand jury, but Bradlee wants another source. Bernstein calls a contact at the Justice Department. On the phone, Bernstein asks him to confirm the story. He refuses. Bernstein then rephrases the question: if there's anything wrong with the story, hang up the phone. He then counts to ten. At ten, the lawyer is still on the other end of the phone. Bernstein is triumphant.
They run the story linking Haldeman, one of Nixon's right-hand men, to the slush fund at CREEP.
The next day, Bradlee's voice rings through the office: "Woodstein!" They go to his office, where they watch as the White House denies the Washington Post story, and attacks it for having an anti-Nixon agenda. To their chagrin, Sloan does not stand by the story. For a moment, it seems like they've been played.
Bradlee wants to stand by the story, but demands that they come up with more answers. Woodward decides to meet with Deep Throat again. He wakes up to a call from Bernstein—how did it go with Deep Throat? Woodward realizes he's overslept for the meeting. He rushes to the parking garage where they've met before, where Deep Throat is waiting. Deep Throat admonishes Woodward for creating sympathy around Haldeman. Finally, Woodward bursts into a rage, telling Deep Throat that he's "tired of your chickenshit games! I want answers." Deep Throat explains: Watergate was only part of it. This was a Haldeman operation. There were and are covert operations that spanned the entire intelligence community. Deep Throat then tells Woodward that his life is in danger.
Woodward rushes to Bernstein's house and turns on classical music as loud as possible. He is afraid they might be bugged. Woodward goes to Bernstein's typewriter and types that their lives are in danger. Both Woodward and Bernstein then go to Bradlee's house, who admonishes them for getting the Justice Department contact wrong. Bernstein admits guilt, saying that his source mixed up "hang up" and "hold on." Bradlee ultimately forgives them and tells them not to quit the story. He tells them to get some rest, because the hard work is only just beginning. There is a sense that Bradlee, now more than ever, believes in the cause.
In the office, they are watching the second inauguration of Richard Nixon. As he takes the oath, Woodward and Bernstein diligently continue writing. Cut from the tranquil scene to frantically typing headlines: Hunt pleads guilty on January 11 to 3 counts of conspiracy. Macgruder pleads guilty to assisting with Watergate burglary. Segretti sentenced to six months in prison. Kalmbach pleads guilty. Chapin is guilty of lying to FBI. Porter gets 30 days. Colson found guilty of a felony. Sans found guilty of illegal fundraising. Mitchell, Haldeman, and Erlichmann. Tapes are released. Nixon says he won't resign. In August of 1974, Nixon resigns. Gerald Ford becomes the 38th president.
From a simple investigation of a burglary, the first resignation of a U.S. president occurs.
Analysis
As much as Woodward and Bernstein are self-sustaining individuals, they get by with a little help from their friends. The tip from Sally Aiken makes a huge difference, as it's the first concrete example they have of the dirty tricks of the Nixon administration. Ken Clawsen's boast ultimately allows for them to leverage the information they have against him; you can either have us print that you wrote the Canuck letter that sank Edmund Muskie, or you can have us print that you said you wrote the letter alone with a reporter in her apartment doing goodness knows what. This is a big win for the reporters.
However, it seems things take a step backwards after the publishing of the story about the CREEP slush fund. Bernstein, in his haste for the story, either misunderstood or willingly misunderstood the information from his source at the Department of Justice. There's a sense that this story puts them on the map for the Nixon administration as an enemy and a target, and with what they know about the proclivities of the administration it's quite possible.
Deep Throat confirms this and more. After Woodward tires of his dramatic spy approach, he demands to know answers. Deep Throat ultimately confirms that the stories they've published are true. He also confirms that they are likely indeed now a target; their lives could be in danger. This is the first time the stakes of the investigation become, for the two reporters, life and death.
With not only their reputations on the line but potentially their lives, Woodward and Bernstein choose to redouble their efforts after stumbling on their last story. Bradlee, who had become a mentor for them, forgives them and sympathizes with their predicament. He muses that he too has been in their shoes, showing that his journalistic integrity comes from knowing exactly what it's like dealing with tricky administrations, both Republican and Democrats.
The final images of the film feature Woodward and Bernstein hard at work juxtaposed with Richard Nixon taking the oath of office, even though they are convinced that his administration is a crooked one. Even though it seems like Nixon has triumphed, the end of the film shows the headlines (some of them ostensibly penned by Bernstein and Woodward themselves) which slowly detail how each of "the president's men" get their just desserts until finally, they depose the president.
Many films and books have speculated about Nixon's involvement in Watergate. He was pardoned, but never tried for knowledge of the dirty tricks. Some believe his knowledge only came after the fact, and his obstruction of justice was a loyal attempt to protect his "men" who had served him. Perhaps the dirty tricks were intentional, but he was by no means the first to utilize them in American history. The mystery around Watergate and the psychology of Nixon fascinate us still today.
The film is a cultural necessity for a difficult period in American history and a sobering testament to the necessity of a free press in a democracy. Perhaps, in an era of "fake news," and accusations of "fake news," it is timely now more than ever.