Bowery Champs

Gypsy Carmen files for divorce from nightclub owner Tom Wilson and demands the securities she owned before marriage. Wilson claims the securities are missing, and tension escalates as Gypsy pulls a gun. A shot is fired through the window, killing Wilson, and Gypsy flees in panic.

Jim Lindsey, the star reporter, is at an oriental rug auction when the murder happens and he misses the story. The situation prompts Muggs McGinnis to commit to covering the murder in Jim’s stead. Muggs asks Glimpy to drive him to the Wilson house in the newspaper's delivery car.

Muggs McGinnis and Glimpy sneak through an open window at Wilson's house and listen as police interrogate Diane Gibson, Wilson's mistress, and Ken Duncan, Wilson's manager. Duncan recalls Gypsy had threatened Wilson, and the lieutenant notes a .38 caliber bullet was used. The houseboy reports a woman in a fuzzy coat and funny hat who hailed a dented yellow cab.

After purchasing a rug, Jim hurries to the Wilson house to investigate and begins gathering clues. He talks with people nearby and plans how to file the story for the paper. His investigation sets the stage for future developments in the case.

The East Side Kids go to the taxi stand and learn from the driver that a woman wearing a fuzzy coat had been dropped off at the Stephens apartment building, where Gypsy lives. This connection ties Gypsy more firmly to the murder case. They prepare to pursue the lead toward Gypsy's residence.

Police arrive at the taxi stand and dispatch a car to arrest Gypsy. Muggs has Skinny don Gypsy's hat and coat and speed away in the newspaper car to throw pursuers off the trail. The Kids continue to search for Gypsy while the net tightens.

Seeing the danger, Muggs instructs Gypsy to disguise herself as a boy and escorts her to the safety of the boys' clubhouse. The plan is to keep Gypsy out of sight while investigations unfold. Gypsy agrees, seeking refuge among the East Side Kids.

Skinny drives to the Wilson house, watches Diane leave, and follows her. The pursuit moves toward the places where the gossip and evidence about Gypsy’s involvement might surface. Diane’s movements become a key thread in the investigation.

At the clubhouse, Gypsy shows her gun to Muggs, who recognizes it as a .32 caliber and concludes it is not the murder weapon. The scene heightens the mystery of who actually fired the fatal shot. Muggs remains skeptical about Gypsy’s involvement.

Jim finds a button in the Wilson house hallway and takes it to his publisher, Lester Cartwright. The police question Cartwright about the strange woman driving the Express’s car, and Cartwright, furious, fires Jim. The button becomes a pivotal clue in the case.

Skinny follows Diane to the Pussy Cat Café, where she hands Gypsy's stolen securities over to Duncan. Skinny then phones his sister to locate Muggs and send him to the café, tying together the threads of a growing conspiracy.

Diane leaves to perform while Gypsy confronts Duncan in his office and demands the securities be returned. Skinny is imprisoned by one of Duncan's henchmen, and Gypsy wrestles with Diane in the next room. Muggs and the East Side Kids arrive to help, and the police arrest Diane and Duncan, with Jim breaking the story of the murderers' capture.