It is Christmastime in Los Angeles. Bill Hastings comes home to find his little friend Joey hiding in a cabinet. Joey is a fatherless boy who is prone to mishaps. He has just run away from military school. While at Bill's, Joey's mother finds him there. She believes the reason Joey ran away from school is because of an invitation to a father-son banquet she received. She thinks Joey is upset because he does not have a father to bring to the banquet. Bill sets out to find Joey's dad in time for Christmas and he does. The last scene ends with Mickey leading the cast in singing Silent Night while Joey is reunited with his dad.
Bill has a theory that he can pick the winner of a boxing match by using simple psychology. He and Mickey challenge one another as to whether Humphrey can win a bout with a skilled boxer. When Mickey loses the bet she must pay up.