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Slip Mahoney of New York's Bowery section is courting Daisy Harris, but she stands him up, going out instead with Ricky, a small-time gangster. Slip gives the flowers intended for Daisy to Josie O'Neill, whose younger brother Boomer admires him. Later, Slip gives Father O'Hanlon a ride to the St. Vincent Boy's Club where the priest learns that one of his flock, Andy Miller, has missed appointments with his probation officer. Unknown to Father O'Hanlon, racketeer, pool hall owner and inveterate practical joker Tony Lucarno is trying to recruit Andy to work for him. Andy joins Lucarno's auto-theft gang and, along with Harry "Jag" Harmon, steals a car, but is caught by the police. At Father O'Hanlon's urging, Andy admits that he works for Lucarno but Lucarno denies it. Andy and Jag then receive a nine-month sentence. In the meantime, Slip's cousin Jimmie, an ex-convict who has moved in with Slip and his mother, has gone to work for Lucarno. When Slip and his pals discover Jimmie robbing a warehouse, Slip tries to stop him but Jimmie slugs him. The nightwatchman summons the police, and Slip is arrested instead of Jimmie. At his trial, Slip refuses to implicate Jimmie and is sentenced to serve eighteen months in the workhouse. Father O'Hanlon speaks to the magistrate on Slip's behalf, citing his previous perfect record. The magistrate suspends his sentence and places Slip on probation in Father O'Hanlon's custody. Lucarno asks Daisy to recruit Slip to his gang, while Jimmie tries to go straight and apologizes to Slip. When Boomer is hit by a car, Slip donates blood for him. After Jimmie is beaten up by Lucarno's thugs because he refuses to work for him, he tells Slip that it was one of Lucarno's men who was driving the car that hit Boomer. Later, Daisy tells Slip that Lucarno wants to see him, and Slip accepts a job from the racketeer in order to infiltrate his organisation and shut it down. After Father O'Hanlon learns that Slip is working for Lucarno, he warns Lucarno not to involve his boys in his shady rackets and socks him. Slip then tips off the district attorney about one of Lucarno's upcoming schemes. Slip steals the mayor's car while his friend Sach steals a police car and Whitey and Chuck, Slip's pals, also steal cars. All head for Lucarno's headquarters in the rear of the Ace High Garage. Lucarno shows up to inspect the cars but draws a gun on Slip, telling him he knows he has taken the mayor's car. In the meantime, Sach is en route with several police cars in pursuit. They follow him into the garage and the police arrest Lucarno. When Slip claims sole credit for having put Lucarno out of business, Sach tells him, "This is the last picture I do with you."