I've just watched it again - which was painful - but it *does* make sense in terms of the plot. Although it's executed poorly, like the rest of the film.
They're talking about how Coleman Francis' character, Griffin, busted out of prison.
Then the chap on the bunk mentions that he once read about a chap called Griffin ("the Cotton King of the South"), who had a scam whereby he sold cotton but stole it back from the people he sold it to. But he got caught and went to prison. Whilst he was in prison his wife spent all their money in order to become a madam, and apparently became quite well-known.
At that point Griffin chokes the man telling the story. The implication is that Coleman Francis' character is the same Griffin, and he's upset at his fellow traveller reminding him of (a) his failed criminal exploits (b) his wife.
In the hands of another director with professional actors it might have been electrifying, tense, shocking. If Quentin Tarantino had directed the scene, with Robert De Niro and Steve Buscemi, it would have been terrific. Alas, we can but dream.
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